Cash Secured Credit Cards - Do they work? If so, How long does it take?

Walk into just about any store and buy one.

If you're paying interest on a cash secured bank card you are willingly butt raping yourself. Why would you do that?

Get a secured card from a reputable bank (if there is such a thing). Put up $400 or so as deposit. Use it for small purchases and pay it off fully every month.

Ask a family member to put you under their credit card and they keep it.

You will have good credit over night.

you won't pay any interest if you pay off in full every month on time.

use it for regular purchases and pay in full every month.

don't use it to finance anything. that's never a good idea!

since you have a low limit on it, you shoukd probably only use it for $25-$50 dollars of purchases each month and not more. unless in canada they don't look at your balance vs. available credit ratio, which they say should be 10% of available credit.

pre-paid visas don't report to credit agencies, you have to gwt a real bank issued one....it's a cash secured card, they hold your cash and you pay every month, at some point with good credit they will revert the card to an unsecured normal credit card, when you ask them to do so.

op you may also want to take out a small loan from your bank and set it up to auto pay, deposit the money you qere loaned right back into the bank, set up a zhort term to pay it back and while you will pay some interest, it shouldn't be too much and will increase your credit score...you ask the loan offi e rto calculate how much interest u will pay over the life of the loan and see if you think it is worth it. Make sude it is a loan that gets reported to all crsdit agencies though or forget it.

ceazy we have to do this stuff, but that's occupied life.

If you pay within 25 days of purchase there is NO INTEREST

So just change it up - and make the payment each time by phone or pay TEN DAYS EARLY to get the best credit

It takes 6 mos before you can wualify for a Capital One credit card

Again - they just want to see you can make a monthly payment

Use it for gas and food or rent - then pay it off

A cash secured credit card is really just a debit card with Visa logo.

Good luck renting a car or securing a hotel room

I didn't use any credit for about ten years. I went to get an auto loan and my bank almost wouldn't write it.

About a year later I got a secured MC with Capital One. I put up $50 and they gave me a $200 credit line.

I used it only for paying at drive thru windows (I know I know).

After a year I applied for a regular MC again with Capital One. It was approved in seconds online. $1500 limit.

About three years in my first card has a $1200 limit and my initial $50 was credited. My second card is up to a $6000 limit. I always pay the first card every month and I carry some balance on the second card.

I'm getting ready to go shopping for a lower interest rate card to replace the second card as I am getting raped there. My credit rating is now just below 700.

Go to your bank and ask if they have a credit builder loan.

Take the cash and deposit it into a separate checking account along with the interest owed on the loan.

The interest should only be like 10-20 bucks depending on term of the loan.

They typically run 6 or 12 months.

Now set up auto pay from the checking account you deposited your money from the loan plus interest into, and never think about it again till you get a letter from the bank.

Do this again when your credit builder loan ends, and roll your credit builder again.

Now take your next 300-500 bucks and get a secured credit card. Only spend like it's cash, and pay off every month.

Go to Kohl's or any other store that offeres in store credit cards at the register and do the same.

Your goal is to have 5 trade lines at the end of two years and have your first two trade lines as well as all others have a perfect payment history.

The point of paying off every month is to avoid paying interest on any revolving trade lines.

If you revolv any Ballance make bi-weekly payments on it to avoid as much interest as possible.


This will get you from a skinny file to 700 Pluss trimerge scores in two years.

Short cut:

If you have a family member who has good credit have them add you as a signer on their accounts but not issue you a card.

I used to be able to offer clients with good credit extra income using their trade lines and broker them to people like you,but that hasn't been legalfor quite some time now.

The brokering of trade lines is illegal now, but family and friends do it for each other all the time.

So in other words,
Its somewhat of a scam, Initially. Charging 25% interest on all purchases made to the card, regardless of balance.

I guess they dont mention that fact that they dont report to credit agencies. So its a scam until the bank issues you a real credit card instead..... ugh.

so how long does that process take on average, lets say if you use it for 50$ of the $300 Balance each month....

Anyone?

As far as I have learned,
You cant cosign for a credit card in Canada. Unfortunately.

Had one once.

Ended up owing twice as much as I initially put up for the account.

Never used credit again.

Pay off the collection items. You owe the money, so pay it. It will help your score but more than that it will show future lenders that you hit a rough patch but you did the right thing and paid off your debt.

Get a deposit-secured credit card from a credit union. Keep the balance at zero as much as possible and just use it occasionally. After 6 months you will be surprised how much your credit has improved. You can then approach the credit union about releasing your pledge and you will likely be approved. You could also apply for a small personal loan and be sure to make the payments on time. Pay all your debts on time after that, and you will be in great shape quickly.

it works got one 8 months ago take 7 days to get and I now have 3 others not with cash and pull my cash back

if you go to your bank make sure you wear a cool president mask with a brown bag for carrying out all that cash and ask for a loan