You’re not alone if you’re African American and have a credit score under 620. A Consumer Financial Protection Bureau study found that 21% of African Americans have a credit score below 620. This is why it’s important for African Americans to find ways to improve their credit score. One of the best ways to do this is by using a secured credit card. In this blog post, we will discuss how using a secured credit card can help improve your credit score!
When you use a secured credit card, you essentially use your money to help improve your credit score. This is because, with a secured credit card, you are required to put down a deposit that becomes your credit limit. So, if you have a $500 deposit, your credit limit will also be $500. Because you are using your own money, you are less likely to default on your payments. This is one of the main reasons secured credit cards are beneficial for those looking to improve their credit score.
Another reason why secured credit cards are so beneficial is because they help build positive payment history. Payment history is one of the most important factors in determining your credit score; it makes up 35% of your score. So, by making on-time payments with your secured credit card, you’re helping to improve your payment history and, as a result, your credit score.
If you’re looking for ways to improve your credit score, then using a secured credit card is one of the best ways to do so. Using your own money and building positive payment history can help improve your credit score in no time!
Here are five of the best secure credit cards.
Chime Credit Builder Visa® Credit Card (No credit check)
OpenSky® Secured Visa® Credit Card (No credit check)
Navy FCU nRewards® Secured Credit Card (Best Credit Union Card For Bad Credit)
Do you have any questions about using a secured credit card to improve your credit score? Let us know in the comments below! And be sure to check out our other blog posts for more tips on improving your credit score.