Which credit card can rebuild my credit faster: secured or unsecured?
Answers | 1
Answered by Phillip Christenson, CFA in Plymouth, MN
August 12, 2015
They will both help you build credit at relatively the same rate. A secured credit card is really just if you cannot get an unsecured card. You have to put some money down to start the account and then the down payment is your new credit limit. The card issuer could take your deposit if you are missing payments. Go with unsecured if you can get it and if not, go with a secured card. Also, if you are focused on building credit then keep the balance low (low utilization rate is better for credit) and make sure you pay it off every month to avoid high interest rates and getting into debt.
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Asked by Alec
Answered by Ray Jones, CA Mortgage Loan Officer in Fresno, CA
Monthly payments will build credit regardless of the account balance. If you carry...