How to Get the Most Out of Your Secured Credit Card

1. How to Get the Most Out of Your Secured Credit Card

2. 5 Pointers for Credit Cardholders In this post, we’ll talk about tips that can help you maximize the benefits you can enjoy from your secured credit card.

3. Settle your credit card bills in full. Always remember that paying just the minimum amount required by your card issuer will only cause your interest charges to balloon out. And this can in turn push you down into debt traps. So, to avoid incurring huge interest charges; resolve to pay your credit card bills completely. That way, you can minimize the credit payments you make each month. More importantly, you can allocate even bigger funds to your personal or household expenses and bills.

4. Always make on-time payments. Another thing that can cost you a great deal of money is paying your secured credit card bills, late. After all, if you fail to pay your dues on time, you could be penalized with late payment fees and even with surcharges. So, make sure that you make on-time or early payments. Not only will this tip help you avoid shelling out way too much cash on fines and additional charges. But, more importantly, it will help push your credit score up for you to reach your target credit score.

5. Monitor your credit card transactions. If you took out a secured line of credit to curb overspending then, you need to pay close attention to the bills and purchases you charge on your credit card. Make sure that you don’t spend beyond your credit limit, or else your credit card won’t be instrumental for you to gain control over your spending habits. It is also important that you examine your credit card billing statements carefully. This way, you can detect if your credit card account is being used by another individual without your knowledge. If you think that your credit information has been compromised then, you need to immediately send a letter to your card issuer. That way, the card company can freeze your account and make the necessary investigation on your claim. Moreover, you won’t be held liable for credit card charges you never made.

6. Use your card to qualify for an unsecured line of credit. Did you know that a secured credit card can help you qualify for an unsecured card program? So long as you pay your credit card bills prudently and completely, you can look forward to being granted an unsecured line of credit by your card issuer. In fact, by making consistent on-time and complete payments for a duration of six to twelve months, you can have the power to negotiate with your lender either for a lower interest rate or for a credit card with no security deposit requirement.

7. Order your credit report, six months to one year from the time you applied for your secured card program. Then, consider if your responsible credit habits really helped you reach your target credit rating. If you failed to achieve your goal then, there might be an error in your credit report. So, examine your credit information and payment records, thoroughly. If you stumble upon an incorrect entry, dispute it with the credit bureau that issued your report. That way the employees of the bureau can immediately investigate your claim and make the necessary changes in your credit file, if they find out that your credit dispute is valid.