To ruin your credit report is very easy. You must do the following:
- Not return loans on time systematically;
- To disburse the sums which overlap your credit line at every turn.
However, it is not too difficult to maintain and improve the positive status of your credit report. It’s enough to control your purchases and return loans punctually.
You must also pay respect to the following conditions. You have to understand that the system Secured Credit Card does not work for wealthy people but rather for poor ones, survived bankruptcy or other life’s turmoil. That is why, when working with the bank it is desirable not to make extravagant deeds, significant amounts, etc.
In addition, you need to understand properly the technology of communication with the bank and the monthly repayment scheme.
You are able to retrieve the credit line only one way: send by mail a paper medium of money (a check from a U.S. bank, Money order or Cashier’s Check) to your bank. It is forbidden to send money via transfer or a modem, it is not advisable to visit branches of a bank (by the by, there are only about twenty such banks in the U.S., and they are placed “somewhere in the middle of America” in the states of Delaware, Nevada and others).
You have a certain period for loan repayment: from about 20 to 50 days, depending on the date of the last shopping, which entered the accounting period.
Surely, you have seen many times as your business partners paid in restaurants or hotels by credit card. This means that the bank, not having a “frozen” deposit, trusts its client significant amounts.
A regular card, as a rule, has a limit of up to $ 5,000, a gold one – from $ 5,000 to $ 15,000, platinum – from $ 5,000 to infinity (i.e. sometimes the bank does not set a quota).
In the United States (especially in business circles) it is adopted to have a lot of cash in the pocket. Moreover, a thick bundle of cash dollars – is rather an attribute of a drug dealer than a respectable businessman. Everybody understands that a credit card – it’s not just a convenient payment mechanism but the mapping of your credit report, that is mapping the degree of confidence of various banks and financial institutions in you. Therefore, to have the “gold” and “platinum” cards is not only convenient, but also very prestigious.
Not very long ago loans were affordable to many people and they didn’t miss this chance. To be on the safe side they have to check their credit reports. This is very useful task but it may seem hard for somebody. It is possible to use credit monitoring service – they will help you to understand the reports clearly.