Help Me I Need Some Advice Please!
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{ 3 comments… read them below or add one }
This depends highly on what is on your credit now.
If you credit score is low due to a lack of credit (not bad credit) then yes in due course (6 months or more) those secured cards will hlep your credit score. However, you also have to make sure that said secured credit cards are reporting on your credit report as some do and some don’t.
If you have minor bad credit and you get some secured cards that are reporting (see above) then this too will help your credit score as well. As over time your past bad credit is being “replaced” by good credit. This will take even longer though.
If you credit is all jacked up this will not help much. lol
This article is a good resource on improving your credit score, http://www.monitorbankrates.com/how-to-b…
I work as a credit analyst and underwriter at a credit card company manually reviewing credit histories for line increase requests and general applications for credit, so I would have firsthand knowledge of your situation.
To answer your question, without knowing any background about your credit history, it’s hard to really determine how much of a difference it will make, HOWEVER I can tell you what you can do to make the most out of those 2 secured cards you have, as that’s the best thing that you can do to rebuild your score.
First, it helps to know what makes up your score:
1. Payment history- 35%
2. Total debt owed to available credit ratio-30%
3. Length of time establishing credit-15%
4. Types of credit established-10%
5. Inquiries and New accounts-10%
When you pay on time, that takes care of #1. There’s no true shortcut to that, so that will take time. But what you CAN take care of is #2. The best thing that you can do would be to make SMALL purchases ($20/max) and pay it in full on time every month AND incrase the deposits to raise the limit. When you have a 0 balance and a high limit is the best combination for a credit score because that means you have all your available credit and you have no debt. Keep in mind that as long as you keep the accounts in good standing, you get the deposit back sometime later on anyway, so it would be to your advantage to increase the limits as far as you can, since you wouldn’t be able to do it with any other credit card. But as long as you do what I just mentioned, you’ll see some improvement!