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For individuals with no credit or those who have experienced a negative credit event like divorce or foreclosure, establishing credit history can be a real challenge. Without proper credit, everything from a car loan to an apartment or even a job can be denied.

When faced with problem credit, many people rely on prepaid cards to manage their daily expenses. However, prepaid cards simply provide access to your own money, not credit from a lender. These cards do not report to credit bureaus and do not help re-establish credit history. People need to demonstrate on-time monthly payments on a credit card in order to rebuild that important credit history.

So how can someone who cannot get a credit card rebuild their credit?

The Public Savings Bank Secured Visa offers people with low credit or no credit the opportunity to re-establish their credit history and work towards improving their credit score. Individuals make a deposit into an FDIC-insured account that acts as a security deposit. They can then make purchases anywhere Visa is accepted or take cash advances up to the deposited credit line amount, currently between $300-$2000. Payments are reported to all three major credit bureaus (TransUnion, Experian and Equifax) so customers can begin to establish credit immediately.

The Public Savings Bank Secured Visa does not require a credit check or even a checking account to apply. Customers can fund their account via Western Union, ACH, wire transfer, check or money order. The card has no annual or monthly fees, and offers 0% APR for 6 months. Rush shipping is available so customers can begin using their card just days after funding their account.

Building good credit is critical at a time when credit is getting harder to obtain. This card allows the customer to build good credit while enjoying all the benefits of a Visa card at very favorable terms.

Prospective cardholders can apply and be approved within a few hours.

Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com

Unfortunately, no matter how long you have your credit cards or how perfectly on time you’ve paid them, the issuing bank (Creditor) still reserves the right to shut you down at any moment.  It’s the fine-print in that long document you signed when you applied.  It gives the Creditors/Banks the green light to constantly monitor your credit profile.  They will do this on a regular basis to see how things are going for you.  If they notice that you have missed a payment or got a new collection, don’t expect a call to verify that it’s accurate before they close your accounts or shut down your limits.

Yes, it’s true that having Credit Cards is an essential component to having a great credit score.  BUT, you have to know that all unsecured Credit Cards can be taken away, even if you do nothing wrong.  This is why I highly recommend that EVERYONE, no matter what your current credit score, get a Secured Credit Card.

With a Secured Credit Card, you put up the money, which you essentially lend to yourself through the use of a Bank that provides you the money back in the form of Credit.  You can get one started for as little as $300.  If you choose the right one, it will report to all three Credit Bureaus just like a regular Credit Card, except one big difference… THEY CAN’T TAKE IT AWAY FROM YOU.

If your credit is already in great shape, then this is the insurance you need.  If you’re looking to build your credit, this is an absolute must.  The Company I recommend is Public Savings Bank.  They have what is called the Secured Black Card.  I have one myself and it’s really user friendly with full online access to everything, etc.

Don’t be reactive on this.  Start building your credit with something that you know will still be with you in ten years.  It’s the smartest thing you can do for your Credit Score!  Below is a list of all the Secured Cards I recommend or have had good experiences with…

Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com

Credit Cards are very important to having a good credit score.  Of course, you want to have a Credit Card that’s in good standing.  This means that you have a low balance or a balance that is less than half of the limit on the card and you make your payments no more than 30 days late each month.  If you don’t have one at all, you could be missing out on 30% of your possible credit score!  If you can’t get a credit card because your score is in bad shape right now, then revert to this previous post for ways to get a guaranteed line of credit to establish your score!

Derrick Evens
Mr Credit San Diego
858.571.0271
AskMrCredit@yahoo.com