Responsible use of a credit card builds a good credit rating. Those who never had credit or need to repair a poor credit history may not qualify for an unsecured credit card. A secured credit card may be a way to estab- lish or reestablish credit. • A secured credit card requires a cash deposit with a lender that will issue a credit line for that amount. • Secured credit cards offer the opportunity to build a positive credit history provided that they are used responsibly. What to watch out for: • Creditors that do not report to all three major credit bureaus. If it is not report- ed, it will not improve your credit. • Cards that are reported to the credit bureaus as a secured card. If the card is reported as secured, creditors may not consider the account, and it will not help to re-establish your credit. Secured Credit Cards
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Secured Credit Cards - Navicore...the card. Check if the card can be converted to an unsecured card in the future. • The policy for closing the card. You may need to pay the balance
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Responsible use of a credit card builds agood credit rating. Those who never hadcredit or need to repair a poor credit historymay not qualify for an unsecured credit card.A secured credit card may be a way to estab-lish or reestablish credit.
• A secured credit card requires a cashdeposit with a lender that will issue acredit line for that amount.
• Secured credit cards offer the opportunityto build a positive credit history providedthat they are used responsibly.
What to watch out for:
• Creditors that do not report to all threemajor credit bureaus. If it is not report-ed, it will not improve your credit.
• Cards that are reported to the creditbureaus as a secured card. If the card isreported as secured, creditors may notconsider the account, and it will not helpto re-establish your credit.
Secured Credit Cards
An Educational Message from
200 US Highway 9Manalapan, New Jersey 07726
1-800-99-BILLSwww.navicoresolutions.org
Revised 6/25/15
• High interest rates and fees. Read the agreementbefore you accept the card. If the fees are high, shopfor a different card. Visit www.creditcards.com (clickon “Prepaid/Debit” ) or other similar sites to compari-son shop.
• The creditor’s policy for increasing the limit onthe card. Check if the card can be converted to anunsecured card in the future.
• The policy for closing the card. You may need topay the balance in full before receiving yourdeposit back.
Tips for reestablishing credit with a secured card:
• Don’t use the card to incur debt.
• Never use more than 30% of the available creditlimit.
• Do not opt into over-the-limit fees. Exceeding yourcredit limit will harm your credit score.