Higher Credit Scores Will Get You a Lower Rate: Raise Scores With a Secured Visa Credit Card

Having a high credit score means more today than I can ever remember.  Your chances of getting credit with a score under 620 is virtually impossible. Just 3 years ago, almost anyone could buy a home and get a mortgage with a 560 score. And, you could have done it with zero down. But unless you have been buried in the desert sand since then, you know those days are over.

Getting a car loan, or even getting a credit card requires a score in the mid 600′s.  At scores under 680, you may get credit, but the interest rate will be higher.   For mortgage approval, scores under 720 could dictate a higher rate.

We still receive many calls from people with lower credit scores who want to buy a home or refinance.  If you fall into this category, be aware that score requirements for mortgage approval are across the board.  Unlike years ago when you could pick up the phone and find a lender to approve your application with a 550 score, that does not exist today.  That market no longer exists because of the fall in home values and the rise in foreclosures. 

To buy a home, you will have to increase your credit scores.  If you need credit repair, try this organization. In many cases, your score can be increased by 100 points or more in 30 to 45 days.  If your score is low because you lack positive credit, then consider applying for a secured Visa credit card.   “Secured” means you give the bank a few hundred dollars which they deposit in a savings account in your name.   The bank then issues you a Visa card with a credit limit equal to your deposit.   This is the best secured credit card on the market today.  A “Prepaid” card is NOT the same as a “Secured” card.  Prepaid cards will not help your credit since they are not reported to the credit bureau. 

Here are some of the features of this Secured card: 

• A regular Visa card that can be used anywhere Visa is accepted
• When using the card, others won’t know the card is secured
• Builds credit history for you like any other credit card
• Reports to all 3 credit bureaus
• 0% APR on purchases during first 6 months
• NO annual or monthly fees
• Low $300 minimum deposit.  Maximum $2000 deposit
• NO CREDIT CHECK and no credit inquiry
• 25 day grace period
• Free 24-hour online account access and bill payment
• Card benefits include travel and car rental insurance
• Zero liability for fraud
• Free emergency card replacement
• Issued by a local Philadelphia bank
• Click through to the bank to view current terms and any changes

For those who want to buy a home, the longer you have good credit established, the better your score will be.   If you only have poor credit now, even if you are successful at repairing your credit, you will still need current, positive credit showing on your report.  A credit report that shows no credit will not get you a mortgage.   Use the secured credit card to build good credit.

When you get your card, be cautious how you use it.  The purpose of the card is to build your credit score.  So use the card sparingly and pay the bill on time.  Refrain from maxing out the credit limit.   Try to keep the balance at 40% of the credit limit or less, and your credit score will improve.

Until my next post . . .

Tagged as: Credit cards, Credit Repair, Credit Scores