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  • Credit Freedom Experts

Updated: Sep 7, 2020


 

 

A secured credit card requires a refundable security deposit when you sign up for approval. The total deposit is usually your credit limit and prevents you from spending over the limit set and provides the lender complete security against default. Secured cards are a great way to start building credit or help rebuild your credit showing positive spending habits on your credit report. Most secured credit cards are pretty much guaranteed approval without scrutiny to your credit history. A secured credit card is a credit card that requires you to place a refundable security deposit, the amount of which becomes your credit limit, preventing you from spending more than you can afford to repay.


Also keep in mind that secured cards are more affordable than unsecured cards that may require high fees and demand higher interest rates if you have a low credit score. If you have a low credit score there is no red carpet rolled out for you the potential customer, so you might find it best to use a secured card while building positive credit history on your report. If you have no credit history on your report it is recommended to have at least three credit accounts on your report. At least 2 revolving credit accounts and 1 loan account is recommended. This helps you build your credit score by providing a good credit mix showing you can manage different credit accounts to potential lenders in the future.


Now there are many secured cards to choose from many financial institutions in the market place but very few will accept your business without you first providing a full deposit up front. This is where some new lenders differentiate themselves from the standard secured cards out there.


We recommend SELF® as an alternative to the regular secured cards out there.

Sign up today, visit here!


Some of the benefits of SELF:

  • no up-front security deposit

  • no credit score required

  • Report to all 3 major credit bureaus

  • start as low as $25 per month (refundable deposit*)


If you would like to pay the deposit up front and not have to worry about a monthly payment towards your deposit then we also recommend The Credit Builder Card.

Sign up today, visit here!


Some of the benefits of The Credit Builder Card:

  • Low up-front $200 security deposit

  • no credit score required

  • Reports to all 3 major credit bureaus

  • Refundable security deposit*

These are some cards that may make a big difference to raise your credit score and help you build positive habits when it comes to your credit use. If you need any help on picking the right card and building positive credit history, please contact us today at

1 - 855 - 495 - 9212. Call now and get a Free Credit Consultation.


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  • Credit Freedom Experts

Updated: Sep 7, 2020


 



 

A tradeline is simply a fancy name for a credit account. There are some different methods for obtaining trade lines and while some are legit, most are not so much. You may have heard friends talking about how they got some new tradelines on their credit report and it has sent their credit score through the roof-- and they try to convince you that you can do it too. This subject is very touchy because there aren't exactly a lot of laws to outline what is legal or not yet when it comes to tradelines.


If you add a tradeline to your report to raise your score, and are found lying , one thing you should be worried about is being found guilty of committing fraud . It is important to educate yourself on the legit ways to add trade lines on your credit report to help boost your score.


Here are some good ways to boost your score using tradelines:


Spouse: Your spouse may add you to their credit card as an authorized user.

Parent or other family member: Your mother, father, or even siblings may add you as an authorized user for a credit card with an actual card to use.

Applying for credit: This way is the least favored way to add a trade line if you are looking for the quick boost in your credit score. However,it is the best option over the long term to help raise your score . There is risk of being denied credit, as well as a score drop at first from the inquiry hitting your credit report.


Here are some not recommended ways to boost your score using tradelines:


Friend: A close friend adds you as an authorized user to their credit card.

Stranger/service: You meet someone from an ad online that sells "tradelines" and guarantees a credit score boost. Adding tradelines in this manner leaves you vulnerable to potential fraud and possibly in jail. Keep in mind it might not help with getting you a loan from a lender.


Always be cautious about any individual or company who guarantees any results when it comes to your credit report and/or raising your score in a short period of time. Adding tradelines from a friend or stranger can be looked at as deceiving the lender and committing bank fraud in order to obtain credit. Most services that add tradelines to your report do so for only a short period of time and then remove you as an authorized user from the credit account. Tradelines services know that positive long credit history can have a substantial affect on your credit score and can boost your score quickly. Removing you abruptly as an authorized user can negatively affect your score.


Sometimes if a tradeline deal sounds too good to be true, then probably is. The Fico® 8 scoring model introduced in 2009 makes it difficult to have new tradelines make a substantial impact on your score if you are just buying tradelines to add to your credit report. It is better to be added to a close family members tradeline as an authorized user. This way you will have a physical card to help boost your score and build good credit habits.


If you are new to credit or trying to rebuild credit and are interested in opening a new tradeline, then we recommend checking out Self. They offer a secured credit card to help you boost your credit score and they provide you with a quick look at your credit score every month. Sign up today!


Also, if you are looking to remove inaccurate items from your credit report and would like a Free Credit Report Consultation, then you can contact us today.

Call 1-855-495-9212 or sign up online.

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  • Credit Freedom Experts

 


 

People are very curious why the credit score ranges from 300 - 850 points and why they are positioned in a certain range that determines the rates they are offered by lenders. This is a good question you should know the answer to before applying for any loans that may lower your score from a new inquiry. You can take a look at all 3 credit bureau reports and score 1 time a year for free at annualcreditreport.com .


If you are interested in getting all 3 credit reports and score monthly to monitor and track your progress we recommend IDENTITYIQ where you can get your credit report and scores for $1 on a 7 day trial.


After pulling all 3 reports and scores you may want to take your score and compare it to the ranges used by most lenders to know where you stand. Having an overall picture of what your credit score means in relation to the credit score ranges means everything when your looking for the lowest interest rate.


Here is a look at the following credit score ranges to give you an idea of what to expect when applying for a loan or service credit account (utility) deposits:


Poor Credit:  Credit applicants in the 300-579 score range may be required to leave a large deposit or are denied credit completely.


Fair Credit: The Credit score range for fair credit is between 580-669. This range is considered the subprime borrower range. You may be approved for a loan with a very high interest rate. You could potentially be approved for a government backed home loan depending on your lender.


Good Credit: Applicants in the 670-739 range are considered less risky and may see moderate to good interest rates and terms considering only 8% are likely to become delinquent in the future.


Great Credit: If you are in the 740-850 range then you are at the top tier to receive the best rates and terms available from lenders.


Now that you have a better idea what the difference is between credit score ranges, then you'll be in a better position to know if your in a good range or if there is room for improvement in your credit score. IF your in the poor credit range then the chances of you getting favorable terms from lenders is slim to none and in most cases you will have to leave a deposit. If you are in the fair credit range you may be subject to deposits at times or higher interest rates.


Most people prefer to be at-least above a 670 credit score to be considered for good credit card rates and lower interest mortgages, however having just a high score may not be everything if your credit report has some delinquent items on it. Make sure to check your credit reports atleast once a year and even better to check every few months to maintain and build your score. Remember 1 mistake on your credit report can affect your credit score by more than 100 points!


Contact us today at 1- 855 - 495 - 9212 for a free credit report consultation,

or sign up online.



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