The ultimate secret: How to get a brand new credit card without damaging your credit history

Credit cards: So many offers, so many advantages, but which one fits you better? We know how confusing it can get, we all have looked through an extended list of tempting suggestions, and believe us, the answer depends on your primary purpose for the card.

The word “Credit card” has an incredible hypnotic ability to make you desire it more than anything. However, we shall remind you that this little piece of magic it’s also capable of inflicting horrendous damage if misused.

There is one thing, though, that you should know: you don’t want to damage your credit score.

Building credit takes time. However, we have some good news. What if we tell you that there is a type of credit card could be a substantial first step toward establishing good credit habits, as well as good credit history?

Credit Card with no credit damage?  Tell me the secret!

It is true, and it’s called secured credit card. Did you get rejected while applying for a new card? The first thing you need to know is that you still can get approved for a secured credit card. The reason? It’s quite simple: You start by paying a security deposit that “shifts the credit risk away from the credit card issuer,” explains the credit expert Latoya Irby.

What makes a secured credit card different from a “regular” one, is that you’re required to make a deposit in order to get the approval. This deposit will serve as collateral for the purchases you make using the card.

According to The Balance, “If you default on your payments, the card issuer keeps your deposit. Otherwise, as long as you keep your account in right standing your credit card issuer will return your deposit to you after a certain number of months or when you close your account.”.

Credit bureaus usually receive the report of this credit card; what means your credit report will have included your payments history, what helps you to establish or re-establish your credit. “Paying on time and managing your balance will help improve your credit score,” so don’t forget to pay attention to the payment dates!

And there is more

Another thing that is interesting to know is that you can earn interest on your deposit. “Some secured credit cards place your deposit in an interest-bearing savings account. Depending on the interest rate and the amount of time your deposit remains in the account, you might be able to earn a few bucks,” writes Latoya Irby.

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