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Every once in a while, we hear someone speak of a time when credit was a hand shake. However, these days, there have been detailed tracking systems and algorithms put into place to judge consumer credibility. Today, everyone has a credit score like it or not. Having a high credit score means that you will qualify for more loans with better interest rates and perks while having a low credit score means that chances are you will not qualify for too many loans. So, it is easy to see why consumers really want to have a good credit score. However, to get a good credit score requires a bit of work.

Now, I have read in many articles about the slow mo credit building. There are a lot of people out there that say when it comes to your credit score easy does it. Well, I beg to differ. When it comes down to it, getting a cell phone and waiting 3 years to have decent credit just doesn’t work for me. I’m one of those people that likes to do things fast. Therefore, I did a bit of research to find the best way to build credit fast. Personally, I found that the best way to achieve this is to use secured credit cards.

Secured credit cards are credit cards designed for consumers with limited to no or bad credit. The reason they are called secured credit cards is because before a consumer can use their new card, they must place a security deposit with the lender. This security deposit then becomes the credit limit for the account. This means that when you use a secured credit card, you are borrowing your own money which alleviates the lender of any risk associated to lending to you. By using a secured credit card properly, you will show the lenders that you are able to be financially responsible when borrowing your own money. Therefore, in the future, lenders know that it will be OK to loan you their money.

Once you get a secured credit card, it is important that you use it properly. Improper use of secured credit cards can take you from limited credit history to bad credit history. However, proper use of secured credit cards will cause the lender to refund your security deposit within 12 months, at which time, you should have fairly good credit. With that said, using secured credit cards properly isn’t difficult at all. Simply make sure that you do not spend more than 50% of your credit limit, make your payments early and pay a little more than your minimum payment each month. In doing so, I’m sure you will see a great credit increase in a fairly reasonable period of time.