Consumer Car Buying Advice Blog

Here at Auto Credit Express, we specialize in matching customers to dealers for bad credit car loans, but there are additional ways to rebuild your credit…

Secured credit card

This is the easiest type of credit card to get for just about everyone including people with no credit history. These banks require that you set up a savings account with them. Your credit limit is the amount of money that is in the account. It eliminates the need to carry around cash, since you use the credit card for purchases and the cash is withdrawn from your account. The advantage over a debit card is that the Visa or Mastercard logo on the card allows you to use it at most businesses. The other advantage is that the bank reports your monthly payments to the credit bureau, helping to establish or reestablish your revolving credit.

Since a number of banks offer these cards, shop around for the best deal. Try and qualify for one that has the lowest monthly rate and lowest annual fee. In addition, some banks will convert the card to an unsecured credit card after a certain length of time, provided you have made timely monthly payments.

Unsecured credit card

Unlike the secured card, the unsecured card requires no savings account to secure your charges. Just like the secured card, shop around to get the best deal on interest rates and fees.

How you can raise your credit score

Your credit score will initially drop slightly after you have applied for a card, so be sure and limit the number of cards you apply for and accept. Either pay off the balance each month or keep the running balance at 30% of the credit limit. By doing this it will raise your credit score. Although making payments will raise your credit score, having balances over 30% tend to drop them slightly and raise flags with the credit reporting agencies.

The Bottom Line

By establishing revolving credit and keeping your balances under control, you can improve your credit score. Here at Auto Credit Express, we want you “on the road” to better overall credit. For more information on using a auto loan to raise your credit score and reestablish your credit, visit our web site at www.autocreditexpress.com.

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