My Credit Score is 550 | How Do I Raise It?
There are several ways to increase your credit score. So, start making the necessary changes now. You’ll soon notice that your score has increased!
Getting a secured credit card
Getting a secured credit card can help you raise your credit score, but only if you use it responsibly. Credit bureaus will report your payments to them, and if you make on-time payments, your credit score will improve. It also takes a few months of regular payments to improve your credit score. Once you’re able to make on-time payments with your secured credit card, you can start applying for more lines of credit and building your credit history.
A secured credit card might be the best option if you’re new to using credit. These cards are great for establishing a good credit score and teaching responsible spending habits. In addition, secured cards are available to people who have poor credit or do not qualify for unsecured credit cards. Once you’ve established a good credit history, you can move on to a traditional, non-secured credit card.
Getting a secured credit card to raise your credit score is the best way to improve your credit score without hurting your financial future. These cards generally require an initial security deposit. Still, they usually offer much higher credit limits than you initially applied for.
Once you have established your credit history with a secured credit card, you’ll be able to move into “fair” territory. Fair credit is generally considered to be a credit score above 630. Having this score will increase your chances of qualifying for an unsecured credit card. For example, suppose you manage to pay off the card balance in full every month. In that case, you might even find the issuer willing to convert your secured credit card into an unsecured one.
The process for applying for a secured credit card varies by the financial institution. Navy Federal, for example, offers a secured card. Customers must open a Navy Federal savings account, deposit $200 into it, and apply for the card. Once approved, a navy federal secured card will be mailed to you. Typically, the secured credit card will have a limit of $200.
Generally, getting a secured credit card is better than getting a traditional unsecured card. This is because this credit card allows you to build your credit history by making regular payments on time. As long as you follow all the terms of your new card, your account will be open for business for many years. In addition, if you manage to stay within the terms of your secured card, it can be a great way to raise your credit score.