How To Build Credit With A Secured Card | Refresh Financial

Official blog of Refresh Financial

[VIDEO] How does a secured card work to build credit?

Your credit score is affected by 5 main factors: 

  • 35% of your credit score comes from payment timeliness on any credit you currently have. If you don’t have any credit products, you need to get some. Sound like a chicken and egg situation? You’re right, it can be hard to obtain credit, without having credit. A secured card requires no credit history whatsoever to obtain. 


  • 30% of your credit score is based on the amount of debt you have compared to the amount of credit available. For example, if you have a credit card with a $1000 limit, and your balance is $300, your debt is 30%. Anything over 30% will work negatively towards your score, so aim to keep your balance under 30% at all times. Worried about going into debt to build credit? A secured card will help build credit, without going into any debt. 


  • 15% of your credit score is based on the length of time each account has been open and the length of time since the account’s most recent action. The sooner you open a credit account, such as a secured card, the sooner it can start working for you. 


  • 10% of your credit score is new credit and credit inquiries. Stop applying for every credit card you come across as this is hurting your score. Apply for a secured card that requires no credit check, and wait until your score has improved.


  • 10% of your credit score is impacted by the different types of credit you have - revolving or installment. A credit card, even a secured one, is considered revolving credit as the amount you owe will differ each month. A loan is considered installment credit, as you repay the same amount every month for a fixed period of time. Apply for Refresh Financial’s Sprint Credit Building Solution which includes both a secured card and a credit building loan!

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