Your credit history is one of the most critical aspects of financial health. You can say that you’re financially healthy if you have a good credit score because that means you can pay on time. Aside from that, a good credit score means you can take out a loan without being questioned by lenders because you have a good FICO score. So if you have a poor credit history due to not being able to pay on time, you can try and apply for a second chance credit card no security deposit with the help of CreditBono.
There are many reasons why you should get a secure credit card. All of these will be good not only for your credit score but also for your overall well-being. So if you want to know what these reasons are, you can learn more here.
Rebuild Your Credit Score
For those with poor credit, the best thing about a secure credit card is that you’re able to build your credit score again. But, of course, this time, you need to make sure that you don’t miss any payments and pay the minimum, at least if you can. But if it’s your first time applying for a secured credit card, then you will reap the many benefits of it, such as getting better rates at car loans, getting higher chances of getting an apartment, and many more.
No Need to Have an Existing Credit Score to Apply
Another reason you can get a secured credit card is that you don’t need to have a good credit score to be approved. That’s because you need to make a deposit, which will be your credit limit as well. However, you only need to pay for the total amount plus other monthly fees, lower than the traditional credit cards. Plus, the risks are lower since there’s already a balance on standby if ever you miss a payment. But, of course, the late payment will still hurt your credit score.
Transition to an Unsecured Credit Card
After six months or more of having a good track record or credit history while using your secured credit card, you will be qualified to apply for an unsecured credit card. That means you can have a higher credit limit and get your deposit back at the same time. But the credit limit will depend on your creditworthiness, which means you need to make sure that you practice good credit habits all the time to get a higher credit score.
Using a secured credit card can help you attain financial freedom. It will also help you understand the responsibilities of having your own account. It’s the best way to become financially healthy and make the right decisions when making huge purchases.