Tuesday, February 21, 2012

Use Credit to Have Good Credit

In order to have good credit scores, you need to use credit.  The credit bureaus (TransUnion, Experian, and Equifax) do not give good credit scores to people who do not use credit cards.

But how do you get a credit card if you don't have good credit scores?  Won't the banks just turn you down?

The answer is NO, not if you apply for a secured credit card.  When you get a secured credit card, you give the bank $300 or $500 and they give you a credit card with a limit of either $300 or $500, depending on how much you gave them.  The money you deposited with them is your credit limit. 

If you use the credit card regularly and pay it on time, then you will rapidly see an improvement in your credit scores. 

Two words of warning:
  • Make sure you shop around for the lowest fees.  Different banks charge different fees, and some banks charge outrageously high fees for their secured credit cards.  Call at least 3 or 4 banks to compare fees before opening a secured credit card.
  • A secured credit card is NOT the same as a pre-paid debit card.  With a pre-paid debit card, you do not have a line of credit - you just have a card that has some money loaded on it.  It will not improve your credit scores.

Getting a loan approved is easy - if you know what to do.  The Mortgage Experts know what to do!!!

Make sure you check out our web site:

By the way, don't forget to refinance your current mortgage.  Rates are very, very low right now.  Don't miss out!  Call us today to get the details for your particular situation.

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