How Does A Secured Credit Card Help Me Build Credit?
A secured credit card account is reported to the credit bureaus just like any standard, unsecured credit card. This means that with responsible use, your secured credit card can help you build credit.
Responsible use boils down to two important things:
Always pay your bills on time. Remember, payment history = 35% of your credit score. Take advantage of payment alerts and AutoPay to make sure you’re never late.
Don’t carry a lot of debt. If you use most of your credit line, it could reflect poorly on your credit history, since the amounts you owe count for 30% of your credit score. Try to keep your spending to less than 30% of your credit limit. Example: if you have a $100 credit limit and you use $30, you’re at 30%.
And remember: your credit habits outside of Self matter too!