Credit cards that you deposit money into help my credit?

Ok a freind of mine told me I can get a credit card which I give the cash upfront and it helps my credit. For example I give 1000 dollars to the bank and they give me a card with a 1000dollar limit on it. Then that shows on my credit as a 1000 dollar limit credit card. Is this true? If so what is it called??

Credit cards that you deposit money into help my credit?

AJ is correct and obtaining a %26quot;secured%26quot; credit card will help your credit. People who have just filed bankruptcy do this all the time to help the to reestablish and rebuild there credir ratings once again. Also, people who are unable to obtain any other types of credit obtain secured credit cards as well to help them to rebuild their credit too. Many of these secured credit cards range anywhere from a 300-1000 deposit that you provide them. You make payments on the credit card just as you would a normal credit card and this payment history gets reported to your credit, just like a normal credit card. The credit card company simply holds your deposit to protect themselves in case you were to default on the credit card. Your payments are not made from this deposit.

Another option is talking with your local bank and taking out a bank loan as the previous person stated they had done. This is a very effective method as well.

A third option to build your credit and credit scores quickly is a process called %26quot;credit piggy-backing%26quot;. If you have a family member or friend willing to add you to their credit card account as an authorized user (they do not need to actually give you access to the account or a credit card or anything) then you can instantly gain their credit history on that card as well in order to improve your credit by borrowing their credit history. Read this credit scoring blog for more information on this and other various tips on improving your credit.

Credit cards that you deposit money into help my credit?

That wont help your credit. You already have the money so just use your money. Your credit is based upon you owing a company money because you borrowed it from them or you owe someone money because you used there service (electrcity, gas, water, etc....) so no it doesnt help.

Credit cards that you deposit money into help my credit?

It is true, they are called secured credit cards.

Marshall and John are incorrect, they will help your credit score if you use the credit card, make the payments on time and abide by the rules the issuer sets. And credit scoring is not based on %26#039;owing a company money%26#039; - it%26#039;s based on paying back the company the money you do owe them - do you pay it back on time, or are you late with the payments?

If you get a secured credit card, be sure to compare the different cards. Many of them charge additional fees to open the account, or to keep the account open. Try to get one with as few fees as possible.

Another possibility to help your credit score if you have some money is to get a %26#039;savings secured loan%26#039; from a bank or credit union. You put your money into a savings account at a credit union or bank, then borrow the same amount of money back from them, at a higher interest rate than they are paying you. By making payments on time to the loan, you will help your credit score. It will cost you some money in the form of the interest you pay, but it may be less than the fees charged by the secured credit card company.

Credit cards that you deposit money into help my credit?

I have poor credit also, what I did last week was called a local bank and asked them if they knew of anything I could do. They told me they would give me a loan if I secured it with money from my savings. So I did a 500. loan and gave them a 500 in a cd until the loan is paid. They don%26#039;t report they had it as secured. It looks like they borrowed me the money, and will report it to the credit bureau. Just a thought instead of not trusting to give your money to a secured credit card.

Credit cards that you deposit money into help my credit?

you are talking about a secured card, not a prepaid card. With a secured card, they usually require you to open a cd or other type of savings account as collateral for the money you spend. the amount you deposit is the amount of %26#039;credit%26#039; you have, and you still have to make your regular monthly payments. after a certain time frame--a minimum of a year, they release the hold on the savings, and you still have the credit card, if you have been making the payments on time. And yes, that would then be reported to credit bureaus. but check around, and don%26#039;t get one of those that charge huge annual fees, set up fees, monthly fees, etcetra. I know Citibank offers them, I don%26#039;t know what other banks do.

Credit cards that you deposit money into help my credit?

it%26#039;s called a secured Credit card, it is when you get a credit card using your own money. it reports to the bureau just like a regular credit card would. It is great for people with bad credit or little credit at all. I have a secured card from orchard bank it is really great. my credit score was in the 500%26#039;s, I only use little off it every month, after about 4 months I now have a credit sore in the 600%26#039;s it works. and also if you maintain it really well they should give you your money back and unsecure the card.

Credit cards that you deposit money into help my credit?

It%26#039;s a secured credit card that any bank can give you and it DOES improve your credit. I would highly suggest this to you if you have poor credit score.