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A secured credit card can be applied for at your local bank or credit union sometimes. Or Capital One or Providian credit cards do it. Or Google secured credit cards.
A secured credit card is one that you deposit a set amount such as $200 and you have a credit limit of $200. Deposit $500 and you have a $500 credit limit.
This is a great way of starting credit back up. What I tell people to do is charge their gas or groceries and put the money to the side. Then at the end of the month take the money you put aside and pay the bill. Be consistent, pay the bill on time each and every month.
You should have 2 or 3 open lines of credit to get a mortgage. Start one and get your credit started today. Don´t wait. The length of time you have a credit line is important. The bank or lender likes to see to see at least one year of payments.
Secured credit cards have high rates and high fees so be sure to shop around and get the best deal.
The higher the limit on the secured line helps the lender determine that you can handle larger amounts of money. So get the highest line you can afford. Remember don´t go overboard. Life within your means and only use this card for gas and food and be sure to put the money aside. Pay the secured credit card off in full each month.
It doesn´t make any sense to come out of bankruptcy or foreclosure and run credit cards back up. Only use them if you are putting the money aside to pay the bill. Pay it on time and be consistent. It also does you no good to get the card and never use it you must get a good payment history started.
By building a credit history you are taking the first step to buying Northville real estate and a Northville home in the future.
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