A Secured Credit Card may help you

For people going onto a Debt Management Program or Consolidation Program, one of their biggest concerns is how will I rebuild my credit score if I can’t have a credit card while on a program? The answer is simple; you can start by applying for a secured credit card.
Apply here

What is a secured credit card?

Secured Credit cards are backed by funds you deposit within a financial institution. The funds are usually held in an interest account that you get back when you retire the card. Quite often, the amount you put down is the credit limit, but that is not always the case. There are some cards that allow you to have a greater limit than the funds you first put down.

The card looks and acts just like a regular credit card, and that means it is reported on your credit report!

 

People with poor credit (or no credit history at all), can use a secured credit card as an instrument that is reported to credit bureau. Paying off the balance in full shows to future creditors that you are capable of being trusted with credit, which will eventually bring down the APR of future credit instruments.

Secured Cards vs. Prepaid cards

Prepaid cards can be compared to using cash. The money you put on the card is how much you can spend. Also prepaid cards are not reported on your credit report. So be careful when searching for a card because you want it to have a positive effect on your credit report.

Using a secured Credit Card.

One thing that should be stressed is paying the balance off each month. Do not allow yourself to slip into the trap of meeting the minimum payments. Secured cards are secured for a reason. The people that use them are generally considered a risk, which means the APR of the card will be high.

Your credit score also improves when your debt to income ratio is in good standing. Racking up a balance on a high interest card will be counterproductive.

Pick a bill and just try to use the card for that bill. A great example is just buying fuel for your car. Fill up your car when needed using the card, but then make sure the balance is paid in full at the end of each month.

We are pleased to offer the Peoples Trust (formerly Horizon Plus), Secured master Card as an option for you. Card limits from $500-$10,000. Apply here.