Years ago, if consumers wanted a loan, all they would have to do to get one is ask with a smile and a firm handshake. Unfortunately, things don’t work quite the same these days. As a matter of fact, getting a loan requires much more than a firm handshake these days, it requires that people have a FICO score that will qualify them for the loan they want. These days, credit scores mean everything!

Credit scores are numbers that follow Americans everywhere they go. They are calculated as a number to show lenders the probability of getting paid back when loaning cash to consumers. With that said, Americans with high credit scores get to enjoy great loans with low interest rates and wonderful perks. Adversely, people with low FICO ratings will have a hard time qualifying for a loan that will give them enough cash to buy a pack of bubble gum. With that said, improving bad FICO ratings is more important today than it has ever been.

In doing my research to find the best way to improve credit scores, I found that several professionals suggest a slow and steady approach that could take 3 to 5 years to build decent credit scores. However, knowing that several Americans want to buy a house or an automobile before the next 3 to 5 years, I felt pressed to find something that would work faster and, I believe I have. The answer was simple, using secured charge card accounts properly can increase credit scores for people in as little as 12 months.

The process is fairly simple, because increasing credit ratings is all about the Americans ability to pay a loan back and display signs of financial strength, I figured to get started, people would need a loan. But, who would loan to consumers with low FICO ratings? Well, the answer I found was secured charge cards. Secured charge cards are specialty credit card accounts that are designed for Americans with low credit ratings. Before using a new secured charge card account, people must first place a deposit with the lender. This deposit will become the credit limit for the credit card account. This process alleviates the lenders of any risk associated with loaning money to consumers with bad credit because the lenders are not loaning anything. The consumers in this case are borrowing their own cash for the chance to show lenders and credit reporting agencies how they will react to a loan.

After using the secured credit card accounts properly for 12 months or maybe a little longer, consumers are generally refunded their initial deposit and their secured charge card account then becomes an unsecured charge card. It is at this point that consumers will notice an exponential increase in their FICO ratings!

Although using secured charge cards is a great way to improve FICO scores, improper use of any charge card is also a great way to cause severe financial hardships. With that said, if you feel as though you are not yet financially responsible enough to ensure that your charge card account will not cause a financial hardship, you should not get a credit card. In this case people should find other means of increasing FICO ratings!

This article was written by Joshua Rodriguez and is brought to you by:
JEMCreditCards.com: Skymiles Credit Card Offers | Credit Cards That Help Improve Credit


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