hi..

what i mean about my question is that if ever i get to build my own credit history, how will i know if i am on the right track of building it?

another question that i would like to ask. what do credit reports do for a credit card holder?

thanks..

hi jonathan,
i don't understand your question... can you explain

for one thing good reports don't go to the credit bureau. Credit reports come from the credit bureau.

hi bebiesean..

just a question..

if i do have two secured credit card, the credit report that goes to the credit bureau would be individually sent by the credit issuer or one report each for the two cards?

thanks.

Okay. I found this on http://www.creditcards-secured.com/choose.php

Q. Should I try to get more than one secured credit card?

A. Not just for the sake of filling your wallet, but I like to see people rebuilding their credit have at least three accounts that report to the credit bureaus. For those who have nothing else or only one account reporting to the credit agencies I would advocate two secured credit cards. Further, in those cases I'd suggest one Visa and one MasterCard. For those who already have a debit card and only want one Visa or one MasterCard, if you ever plan to travel internationally, get the other so you have both when abroad.

I wonder if anyone can confirm this?

I'm just wondering how many secured credit card can you apply for because I saw this question asked here in this link http://answers.yahoo.com/question/index?qid=20100325130652AAY7PiQ .

I can understand why you would need more than one secured credit card considering the small credit limit it offers, but how would it affect your crediut score?

The main difference between a secured credit card, and the unsecured card is that you have to put a deposit down to secure the credit card.

this goes against conventional wisdom, where people think they can get unsecured credit cards and start spending money on them. Unsecured credit cards are really for people who have proven themselves as creditworthy, over a period of time.

If a person is not creditworthy or is brand-new to the credits and enable me to get a cosigner or put a security deposit down and ordered a credit card.

What' the difference between a secured and unsecured credit card?

Secured Credit cards are used by people with bad credits to improve their FICO scores as major secured credit card issuers reports the progress/payments you have made to the credit bureaus. You can use secured credit cards to purchase items but your credit limit depends on the amount of deposit you've made to the card issuer. You can increase you're credit limit by increasing the amount of deposits. Unsecured credit cards on the other hand, offers more flexible terms and rates for you. there's no need to deposit any collateral but a good credit score is needed in order to be approved for one.

Here's an article I found on Staringfrog.com that will hopefully help you get approved for a secured credit card. I know that credit card companies say that the approval rate for secured credit cards are virtually guaranteed, but that doesn't mean that everyone can get one. There's still a small chance that you will get denied especially if you still have some problems with your filed bankruptcy.

So here are 6 question that most lenders asked the applicants before they approve your credit cards to prove if you're creditworthy or if they should be careful in extending you credit. The action plan should be to prove to the lenders that it's right to approve your credit application. I hope this helps increase your chance of getting a secured credit card.

1. Are You Discharged From Bankruptcy?

being discharged means that you've completed your bankruptcy
The first thing a lender will need to confirm is if your bankruptcy is discharged. Or, in other words, if your bankruptcy is complete. If you're still under bankruptcy, then the lenders are risking being included in your bankruptcy. SO please do not confuse the terms filing bankruptcy, discharged bankruptcy and dismissed bankruptcy. Having your bankruptcy dismissed means that you have not completed your bankruptcy and it's bad. You'll have all the negative effects of filing bankruptcy and none of the benefits (i.e. released from all the debts owed at the time of bankruptcy) it's like paying your debts but your credit score remains the same.

2. How long have you been discharged from your bankruptcy?

It's a point for you if your bankruptcy has been discharged long before you apply for any credit cards or loans. The longer time has passed since your bankrupcy, the better for you because lenders have different guidelines when it comes to their minimum requirements to approve your application. A car, for example, can only be financed by a lender after you have been discharged from bankruptcy; a secured Mastercard or Visa credit card is easier to get because you only need to send in your deposits when you get discharged, while secured credit card issuers are more cautious. They might not approve you until any trace of bankruptcy is gone from your credit reports. Some lenders will even ask you to pay your debt with them before they approve you for another credit card.

Mortgage lending, on the other hand requires more than any lenders. The length of time since you've been discharged from your bankruptcy will determine what kind if mortgage lending you qualify for. You'll be considered sub-prime borrower if you've been discharged less than 24 months but if you've been discharged more than 24 months, then you can get more conventional mortgage programs.

3. Have you been paying your bills on time after your discharged?
Late payments, even 1 day late payments can be detrimental to your credit score. Some lenders report even 1 day late after the due date as a 30-day late payment to the credit reporting agencies. This is because they consider lates of 1 to 30 days the same, so even a day behind with your payments can hurt you. So always pay on time, if not early because you simply cannot afford being late.Lenders will track how you've handled payments since your discharge. So if you tell your lenders that you've been paying on time, they'll be able to confirm if you're saying the truth.

4. Have you re-established your credit since you've been discharged?
This does not mean you have to avoid getting any credit accounts. Show the lenders you've reaffirmed your credit accounts after discharge by aiming for new credits.

You need to aim for the following credit accounts:

- Car loan
- Car lease
- Home mortgage
- Bank loan
- Overdraft protection
- Credit union loan
- Credit card
- Gasoline credit card
- Retail credit card
- Student loan
- Home equity loan

This is to show the lenders that they're not the first to extend you any credits. Opening your first credit accounts are very frustrating and it needs a solid plan of attack but you have to start reafirming your accounts from somewhere. This is a means to prove to the lenders that you're capable of managing your credit effectively.

5. How much can you afford for a down payment?

Start saving for a downpayment or deposits because it might be necessary in some circumstance to deposit some money to geta credit extended to you. Lenders do not take post-dated cheques.

If you want to get a good secured credit card-plan, you might be asked to deposit around $250 to $500. Though there are some secured credit cards available for lower deposits, They are not very commendable. Most of the cards with lower-deposit have hidden fees… some do not report to the credit bureaus properly and accurately and are usually stamped with higher interest rates.

6. Do you know your credit scores?

This is important. Credit scores are used by your lenders as a basis for approval, rates and terms for your credits. More importanly, know which of the 3 credit bureaus has your HIGHEST credit score, your MIDDLE credit score and your LOWEST credit score. Then gain better advantage by choosing to work with the lender that utilizes the credit bureaus that has your highest and most favorable credit score. This way, you can get better terms and interest rates.

To gain the most leverage over any lender you should choose to work with the lender that uses the credit reporting agency that has your HIGHEST FICO score. This way you receive the lowest interest rate

Just a thought... it is important to take care of your credit score.

Imagine this, it takes as long as two years to get a good credit score after you acquire a bad rating, depending how low your score got. This will only earn you higher interest rates and your capacity to take a loan. And it will take approximately 1 year to improve your credit rating, depending on how prompt you are with your payment.

A secured credit card will definitely help you improve your credit score, but why wait till it gets to that point, take care of your credit now. Be responsible in using your credit card, and purchase only what you can pay.