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4 Tips to Build Good Credit

21 July, 2011



People always struggle to achieve and maintain the good credit score. It becomes very hard to rebuild the good credit history in order to obtain the approval of new credit card. It can be observed that the origination of the cards were continued to decrease 50 percent every year from the second quarter of 2009. Generally, a lot of time is required to build the good credit history and maintain the good credit, due to limited number of options. These opportunities might be small and very complex but not impossible to maintain the good credit. There is, however, small number of options for rebuilding or establishing the credit history. Some of these options are briefly discussed here.

Options for establishing the credit Choice of Secured cards

The role of secured cards is very important to solve this issue. These are usually consists upon the minimum deposits as $200 or $300 made by the consumers which is used as the credit line. The proper reporting to the agencies might be helpful to build the credits.

Fico scoring

There is method of FICO scoring which is generally used to evaluate the secured cards. Most of the credit card companies will improve the status of unsecured cards after a definite period of time. This is usually occurred within a period of 18 months.

Annual fee charges

Some time these secured cards charge annual fees, so credit cards with low fee should be selected for this purpose. Generally, this might be in the range of $20 to $50.

Choosing of retail or other Branded cards

Retailed and gas company cards are another option to re-build or establish the credit. There should not be any confusion about the utilization of these cards which also recognized by the different types of credit companies like MasterCard, Visa, Discover logo and American Express etc.

Where to use

These can also be used everywhere with necessary prerequisite conditions. There is lot of offers within the store cards on the day of its approval for the merchandise purchase.

Selection of prepaid cards

There is an option of prepaid cards to establish the good credit score. These are usually the payment cards similarly to the gift cards. Any purchase will be deducted from the card funds. However, there are very limited numbers of prepaid cards which are generally used to build the credits by fee.

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by Gemma Maddock



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