We all hear the horror stories of identity theft. Even when we take extra steps to protect our identities and finances, situations outside our control, such as major retailers being hacked, still happen.
That moment, when you FINALLY pay off a credit card that has plagued your thoughts and haunted your monthly bottom line for years, or even decades, can be a moment when you want to tell the company good riddance and leave them behind forever. But, is that the right move to make for your credit score?
Your credit report offers lenders a glimpse into your finances, offering a window into your spending and repayment habits over time. Maintaining an excellent credit score takes some hard work, diligence, and patience, but the payoff is big.
Your credit score carries a lot of weight in your ability to obtain credit, the amount of interest you pay to buy ordinary things, and it can even impact insurance prices and your ability to get jobs in specific sectors. It’s essential to know your credit score and understand how to safeguard it.
Your credit score is a number you need to know. This score is a numerological representation of your ability to pay your bills on time and maintain good credit use. Lenders of all types, some employers, insurance companies, and others use this score to determine how trustworthy and reliable you are.
Secured credit cards work just like regular credit cards, and you make purchases and payments as usual. But there's one big distinction — with a secured card, you have money in your account already in case you cannot repay the balance.
A secured credit card is a great tool to either help you establish credit initially or assist in restoring your credit to boost your credit score. Unlike a traditional credit card, a secured credit card requires a deposit as collateral. For example, you deposit $500 into a savings account that you cannot touch. In return, you receive a credit card with a $500 credit limit.
