How to Build Credit,Secured Credit Card,Discover

How To Build Credit the Easy Way


After learning about how the credit score works, we can finally learn how to build credit. This process is also helpful for those with bad credit history who are trying to recover from it. The goal is to at least get a credit score of 700 in order to have great approval chances on some of the most profitable credit cards in the market!


How to Build Credit

One of the easiest ways to build up credit is to apply for a secured credit card. To apply for a secured credit card, you must put down a deposit ranging from $200-$1000 depending on the issuer (bank). Because of this, approvals are much easier even if you currently have a bad credit score because the bank have your deposit as a collateral to make it less risky for the bank. The deposit amount will then be the same amount of your credit limit. One thing to make sure is that the secured credit card should not have an annual fee!

Don’t worry! Your deposit will then be refunded in full if you maintain good standing by paying your credit card bills in full for 6-12 months. Your credit limit will most likely be very low, so it’s important to keep utilization as low as possible, while also avoiding 0% utilization rate to accelerate your credit score. To make it easy, just put one charge per month that costs less than $10. Eventually, you will build up your credit score nicely and graduate into an unsecured credit card, in which the bank will notify you through mail or e-mail. What will likely to happen is that the bank would increase your credit limit by tenfold or more in some cases!


Keep it Open!

However, secured credit cards, even after graduating to unsecured, are not good at reaping rewards. Most of them don’t even have cash back as rewards. The sole purpose of secured credit cards are to build a foundation for your credit history and to then move on to applying for better credit cards in the market.


how to build credit keep it open
Keep your cards open to lengthen your credit history!


With that said, it’s safe to keep it open and not use it for a long time to build up credit history that will be good for your credit score. To keep it open without the bank closing it due to inactivity, you should put a charge once in every 6 months. It doesn’t have to be a big expense. Just buy a pack of gum or a can of soda! The banks will usually notify a friendly reminder of prolonged inactivities of a credit card.


Card Recommendation


Secured credit card to build credit


One of the best secured credit cards in the market is the



Hopefully after reading this post, you will see the easy process on how to build credit score. All it takes is getting a secured credit card that’s easy to get approved for and finally start building good habits like paying your credit card bills on time and in full as discussed in the last post on how the credit score works. It’s just a matter of time where you’ll be able to take advantage of lucrative sign up bonuses from better credit cards available in the market.

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>