I am sure you have seen the ads, they go something like this "you are pre-approved for a $ 10,000 credit card with no credit check". Then, after a lot of time and energy, you find out that you are actually approved for a $ 200 credit line, with $ 180 in fees, leaving you with a whopping $ 20 in credit!
Always read the fine print!
Unique Challenge in Building Your Credit
If you have bad credit, or no credit at all, you may not be able to qualify for a credit card. Oh sure, anyone can get a secured card. You pay a company $ 300, and they give you a credit line equal to your $ 300 deposit.
So, getting even one line of unsecured credit may be almost impossible
Without new credit being reported in your file, it is almost impossible to increase your credit score. So, not only is it a problem getting a new account reported on your report,
But it can also cost you a lot of money in the long run in the form of higher interest rates.
THE FASTEST WAY TO RAISING YOUR CREDIT SCORE is having a new primary account reported to the credit bureaus. Adding a new account not only raises your high credit limit, but it also lowers your debt to "credit ratio." These are 2 very important factors in determining your credit score.
There are companies that I use that will approve you for a $ 10,000 unsecured credit line, with no credit checks or deposits! Imagine what a $ 10,000 unsecured credit line will do for your credit score.