If you're the kind of person that lives off borrowed money, as in cash that's extended from different lending companies, you are lucky - why? Because you of all the billions of people out there have a deeper understanding of the importance of credit history. Everyone that patronizes the services of this creditors knows that having a good credit score is but of the utmost importance when it comes down borrowing money. But not all of them have good history; some even should be ashamed of the scores they got, which inevitably leaves them with one option: suicide. Not the type of suicide where as to intentionally get yourself into a fatal accident, cut your wrist, or jump off a cliff into a pool of sharks (very effective method to get killed), but the type where you pay more than what you have to.
People with poor FICO scores know this; they have to put up with high interests rates and agree to ridiculous terms just to pull out a loan. I feel for you, and I completely understand how frustrating it can be. That's why today I'm going to share with you a little trick you can use to make good with your creditors, by repairing your credit through a certain method - want to know what it is? Come closer, I'll tell you: secured credit cards. Nothing fancy here, but it's a sure fire way to build your credibility. Do you have any idea what it is anyway? If you don't listen to this: secured credit cards are of course a credit cards, but they were “engineered" specifically for chumps with poor rating, or no rating at all.
The good thing here is that it functions the same way any credit card would, only with a stricter limit. Whatever you put in this security deposit, it's generally the exact same amount you get to spend. Let's take a look at the example that's coming up, so that you can better understand what I mean: if you place $1000 into the account, you will be given a spending limit of $1000 dollars. This is a safety precaution against default payments; they anticipated the tardiness of people when it comes to paying, that's why no withdrawals can be made while the secured credit account is open - clever little monkeys.
But hey, that's good news for you, why? The reason behind that is you get better control over your expenses. Spending money you don't have, as rendered by the regular cards, gets you into debt. A man given the opportunity to get his hands on goods will do so, especially if he's given more than a month to pay for it. He'll do so, even though he feels that paying it all back won't be difficult. That's when man finds himself deeper and deeper into the hole, to the point where there's no way out. That then results to lower his score drastically, and then finds it harder and harder to apply for the loans he'll really need.
All that could have been avoided if he had gotten a secured credit card instead, right? Opening an account doesn't just grant you better control over your expenses, but builds your credibility in the eyes of the credit companies. They view such as a sign of “responsibility", which makes you more trustworthy, which can lower the rates and improve the terms you agree to.
The author of this article Rick Goldfeller is an underground Financial Analyst who has been successfully running campaigns for several wealthy clients. Rick finally decided to go public and share his knowledge and experience through his website http://www.finanzine.com You can sign up for his free newsletter and join his coaching program.