Which is the best credit card

Submitted by Anonymous (not verified) on Wed, 04/07/2010 - 11:45
Forums
Credit repair

I have a secured credit card for $1200 which i took 2 years ago. Generally I maintain a balance of $0 to $200 on it and pay it off every 3 weeks. My current credit score is 690.

If I decide to get other cards, which ones should I be looking at? Several lenders have said that I need more lines of credit, and that too current. I have a number of old collections on my report, older than 2006.

Please advise.

Thanks

Aaron

Hi Bunny,

I would suggest that you take another secured credit card from another big bank. You have a good credit score. Banks will easily issue you a new card. However, take a card with low interest rate, and also check that the interest rates doesn't vary.

Thanks,

Aaron

Wed, 04/07/2010 - 11:54 Permalink
goodnatured

Can you guys explain the difference between a secured and non secured card and what it takes to get one.

I need to raise my score, is it worth paying for a credit card as long as they report to the reporting agencies? If so, does anyone know a good one to get?

My score is still around 590 and I would really like to raise it more, thanks in advance.

Wed, 04/07/2010 - 14:01 Permalink
Aaron

Hi Goodnatured,

Secured and unsecured credit cards work in the same way. However, the difference is that secured credit cards depend on the deposits while unsecured cards allow purchases through the usage of credit. That is while using secured credit card you need to deposit some amount of money before the purchase. However, in unsecured cards, you can purchase first using the card, and then pay off the money. With secured cards, you do not have the fear of accruing great amount of debts.

Thanks,

Aaron

Thu, 04/08/2010 - 05:17 Permalink
Hari1

What does this secured credit cards and unsecured credit cards really mean?

Thu, 04/08/2010 - 09:28 Permalink
Aaron

Hi Hari,

Welcome to this forum :)

Generally most people use a credit card to make purchases.In unsecured credit card first you make the purchases, and then pay the money to the bank with whom you have the card. This is known as unsecured credit card.

However, unlike unsecured cards, in secured cards, you need to first pay a certain amount of money to the bank with whom you have the card, and then start using the card.

Thanks,

Aaron

Thu, 04/08/2010 - 10:21 Permalink
goodnatured

My credit limit on my card has been raised from $200 to $500 and I have been making monthly payments and not charging anything so I have it down to a month of being paid off to establish a payment history. I don't plan on charging anything for a while, so having this much available credit on the card should actually raise my score right? When it comes to credit and debt ratio?

Wed, 06/09/2010 - 18:51 Permalink
pinkykarina

Most banks have similar interest rates; so there is not much to choose between.Some banks like ICICI offer free for lifetime cards and this can save the card holder a lot of money in the long run.

Thu, 06/10/2010 - 10:41 Permalink
goodnatured

This card is actually from a store, fashion bug, I figured as long as I make a little more than minimum payment and then keep a good payment history that it would build a good payment history on my report, then they raised the limit so it actually did a second benefit raising my credit to debt ratio. I only have another month to pay it down to zero and then will just keep it open with no balance.

Thu, 06/10/2010 - 11:31 Permalink