Building a positive credit history—whether you’re just starting out or you’re repairing your credit—takes time and dedication. Before a prospective lender would consider you for a loan on a big purchase like a car or house, your credit history must show good credit management. That means that (1) you actually use credit, and (2) you pay your installments and/or monthly minimums on time.
Many people think that maintaining a zero balance is the way to go: keep the credit card for emergencies, but never use it unless a true emergency arises. While it’s true that you don’t want to accumulate debt that you can’t pay off in a reasonable amount of time, you should, however, have some activity on your credit card every month. That activity creates a credit history, which banks need to see in order to evaluate your loan application. No activity = no history = probably no loan granted.
Using your credit card for a small purchase each month will help you build a positive credit history. A $5 snack or $10 in gas will do the trick. Pay off the balance as soon as you receive the bill.
But what if you have been previously declined for credit due to a bad credit score? The solution for you could be a secured credit card through our special promotion. We have yet to see anyone get declined. For a small $29 annual fee and $200 initial deposit, you can be on your way to building back your credit health.
Your secured credit card is issued by MasterCard and gives you the freedom to make purchases with your card everywhere MasterCard is accepted. Click here to sign up.