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Do you have a bad credit score? You need a secured credit card!
Are you looking for credit cards for limited credit history? Plastk is the answer!
Secured credit cards provide people with low scores an easy way to improve their credit scores quickly.
In comparison, Plastk gives a chance to poor creditors to rebuild credit with a secured credit card.
So, do you want to know how to use your card intelligently to help improve your compromised score? Here you go:
1. Choose The Right Card!
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The first step in building your Equifax credit score has to be choosing the right card!
You can’t expect good results with a bad secured credit card. Yes, that’s right.
And trust us when we say, Plastk is the best in the market when it comes to building credit scores with a secured credit card.
Don’t believe it? Read it from the top credit comparison experts!
2. Look Into The Security Deposit!
Yes, you want to build your credit score fast, but you also shouldn’t invest your money into any card that might increase your debt chances.
However, with a secured credit card, the situation can be improved.
- Take it slow: If $300 is the best you can afford, go with it. Don’t push yourself with a higher deposit to increase your credit limit, as it can damage your credit score if you fail to pay the bills.
- Compare your options: You can also look around and compare two or more credit cards to see which offers better advantages.
The goal is, of course, to use the card frequently while limiting your expenses to an amount you can manage to clear each month.
With that being said, it’s time for the next point! :p
But first, how much should you put into your secured credit card? Here watch a video to find the answer:
3. Clear Your Bills Every Time!
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Your credit rating is greatly influenced by your monthly payments (credit history), which account for 35% of the total credit score.
You can imagine what a missed payment can do to it, as it accounts for a significant percentage of your scoring profile.
You guessed it right! Your score can drop to an unmanageable level as a result. Therefore, it is essential to make timely monthly debt payments routinely.
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A tip to boost your credit-rebuilding journey! Even if the minimum monthly payment might be enough, the ideal strategy to prevent massive (high-interest) debt is to pay the entire balance of your secured credit card account each month. |
However, if you continue delaying your full payments, the high interest will ruin your chances of improving your credit history.
4. Keep A Check On Your Credit!
Keeping track of your secured credit card usage can help you have the desired impact you need for your credit score rebuilding.
You can check your credit report directly from the credit service provider. Or, you can demand a free report from any of the top credit bureaus in Canada:
- Experian
- TransUnion
- Equifax
Monitoring your credit report is crucial if you want to accelerate the process of restoring your credit.
- It can give you a heads up on any credit fraud activity,
- It can help you identify errors on your credit report,
- It can also point out accounts you aren’t aware of (identity theft),
- Or, the transactions you didn’t make (credit scam)!
Also, it is the best way to ensure you stay on the correct credit rebuilding path.
5. Say No To Err Spending!
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When we say no to err spending, we mean avoiding all these money situations:
- Felt sad? Going on a shopping spree.
- Don’t feel like cooking? Ordering take-out food.
- Feeling stressed? Heavy partying on the weekend.
Of course, all of these sound fun, relaxing, and stress-relieving.
But trust us when we say that while these circumstances may temporarily stabilize your emotions, they will cause long-term instability in your bank account.
Here’s how to avoid overspending on your credit card:
How A Secured Credit Can Help Your Falling Credit?
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Good credit is important more than ever now!
- It can help you score a good mortgage rate,
- Reduce the interest rate on your insurance,
- And live a better everyday life by making purchases through your card.
Additionally, a lot of firms consider credit ratings when considering whether or not to hire applicants.
So, if you have bad credit, your life can be doomed in true terms. However, of course, not every Canadian has a good credit history and profile.
Don’t worry. It’s not over till it’s over. ;)
Plastk secured credit card is the solution to all your credit problems.
1. It can help you start!
What’s the worst part of having no credit score or history? Getting rejected on every card!
Yes, most of the top lenders will review your score and previous payment history to accept your application.
So, getting one to start your journey can be a bit hard.
Here comes the secured credit card in the picture.
- Plastk offers guaranteed card services to all customers despite their credit scores and history.
- You don’t have to worry about rejection as we offer services to all Canadians.
See: How To Get A Secured Credit Card In Canada?
2. It’s easy to manage!
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Credit cards can be overwhelming and sometimes intriguing to use badly.
However, not the case with a secured credit card (or the Plastk card).
- You get to enjoy the weekly tips to increase your financial literacy!
- You can get continuous alerts and updates on how to improve your credit score!
- You can view the progress and reports easily on your mobile app!
With all these helping guides and tips, there’s no way you can use the card the wrong way.
Yes, we’ll teach you how to get the best out of your secured credit card in Canada! :)
3. It urges you to build a good credit history!
As we explained in the previous points, Plastk provides helping tips to its customers to set their credit-building journey.
Moreover, doing so can also help you improve your payment record and build a good credit history.
FAQs
Here’s a short Q & A session before ending the guide:
1. How fast can I build my score using a secured credit card?
Your credit score usually improves depending on your past credit record, like how well did you manage timely payments? Is there any negative inquiry on your credit report?
However, many customers have reported an increase in their credit score within a 6 to 7 month period despite the bad credit profile.
2. Can a secured credit card help me improve my credit score quickly?
Yes, it surely can if you use it the right way using our credit building tips.
Moreover, most secured credit lenders report to major bureaus every 3 to 4 months, so you can expect a change in your credit score if you follow good money habits.
3. How to smartly use a secured credit card to build credit?
By using it ideally to correct your compromised credit history!
Your payment history makes up the majority of your credit score.
So, make at least the minimum payment to clear the balance on time each month in order to establish good credit with your secured credit card.
Bottom Line
When it comes to spending intelligently on your secured credit card, the top tips that come to mind are:
- Using the right card
- Paying on time, all time
- Monitoring your credit score
- Keeping your credit report error-free
- Avoiding overspending
And, some other simple yet effective tips that work perfectly to improve your credit score. Want to know more? Give this guide a read!
We surely have all the answers you need when it comes to perfecting your credit score.
Lastly, let us know what you want to read next on the Plastk Credit Tip Tuesday blog. Happy reading! :)
