4 Benefits of Getting First Latitude Secured Card
Does a secured credit card affect your credit score differently than a typical credit card? No, not with the First Latitude Mastercard®. Our credit scoring model doesn’t care whether your card is secured or unsecured. If your credit score is less-than-perfect, a secured credit card may be a good option for you.
Here are four benefits of secured credit cards.
1 Credit Building¹
Credit cards can have both a positive and negative effect on your credit score. This mainly comes down to how you use it. When used responsibly, a secured credit card can help build your credit. It can:
Your credit payment history makes up a big part of your credit score, so having positive payment history in your report is important for building your score
Credit utilization is another factor in determining your credit score. This is your card balance compared to credit limits, which should be kept under 30 percent.
When you don’t have any credit accounts, you can be “credit invisible.” Your secured card can help you establish credit so that you become credit scorable.
2 More Accessible
Maybe your application for an unsecured card was rejected. Maybe you had an “adverse” credit event like a bankruptcy. Maybe you just haven’t had many credit accounts in your life or moved to the US from a different country and have yet to establish your credit in America. If you have a low credit score or limited credit history, approval for a secured card can be easier than for an unsecured card. To get a First Latitude Mastercard we verify two things:
1. That you are not part of a bankruptcy proceeding
2. That you can provide the documents necessary for the required government required identity check if needed.
It’s that easy! Plus, The security deposit that you provide lowers the risk to the lender. So, things like your credit score aren’t weighed as heavily during the approval process. Since lenders are less restrictive, you have a better chance of being approved.
3 Same Benefits of an Unsecured Card
You can use a secured credit card just like an unsecured card.
4 Stepping-stone to Unsecured Cards
Secured cards can be used as a stepping-stone toward an unsecured credit card. Once you have been able to establish a positive credit history and improved your credit score¹, you may be able to qualify for an unsecured card. This means that you may have a higher credit limit and won’t have to provide a deposit for the card. An improved score also means that you may be able to qualify for other forms of credit like personal loans and auto loans.
Source: Mastercard.us. https://www.mastercard.us/categories/secured
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third party companies, products, or services described here, and take no liability for your use of this information.
¹Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.