Free 60 Second Application with 98.9% Approval]]>Benefits of Using Secured Credit Cards
Bad credit consumers looking to repair their credit during the tenure of their auto loan can benefit a great deal by applying for a secured credit card. This is why, we, at Valley Auto Loans suggest many such consumers to apply for a credit card while financing their vehicle. Valley Auto Loans has been a leading bad credit auto Loan service provider throughout the country since many years. Our service has helped many credit challenged applicants qualify for the most attractive car loan deals.
Revolving and installment are the two types of credit that one can apply for. A car loan is the most common form of an installment credit. This type of a credit contract requires payment of a fixed amount for a fixed period of time. On the other hand, credit cards are the most common example of revolving credit. No fixed monthly payments are required for this type of contracts. However, depending on the balance, a minimum amount needs to be paid every month. The borrowers are also allowed to carry over the remaining credit amount if the entire account balance in not paid off.
It is very easy to qualify for secured credit cards, even without a good credit history. Applicants are required to open a savings account with the lending company, and the balance in this account determines the credit limit available on the card. The amount payable for items purchased on these cards is deducted from the corresponding savings account. Though these credit cards are almost like debit cards, the biggest difference is that all the monthly payments are reported by lenders to the credit bureaus. As a result, secured credit cards can play a serious part in the establishment of revolving credit. Most importantly, many of the lending companies convert secured credit cards to an unsecured one after making timely payments on a regular basis. Unsecured credit cards can also help in reestablishment of credit. However, getting one of these cards with bad credit is almost impossible.
Be careful about not applying for too many credit cards at a time because a slight drop in credit score takes place after applying for a credit card. Any bad credit consumer can improve his/her FICO score by maintaining a balance of less than 30% of the credit limit and making regular monthly payment.
Valley Auto Loans can be of great help, in case you are looking to improve your installment credit. We have a huge network of lending partners, engaged in continuous efforts to provide you the most lucrative auto loan deals.
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