That’s right. Your savings account is a treasure chest of many financial opportunities.
Happy 2024!
Kung feeling mo you’ve already hustled hard nung 2023, you’re probably wondering how you’re going to use your hard-earned savings to your advantage. And since we’re still deep within the New Year spirit, why not take this moment to level up by getting your first credit card?
Well, you’re in for some good news! Your savings account isn’t just a stack of cash; it’s the launchpad for securing a credit card. Once you’ve diligently built up your savings, it’s time to leverage that financial discipline for even greater opportunities.
What is a secured credit card?
Kung never ka pang naisyuhan ng mga bangko ng credit card, usually they will recommend you to apply for a secured credit card.
With a secured credit card, the credit limit is typically tied to a cash deposit you make upfront — often the amount you have in your savings account. This deposit acts as collateral, making it a secure option for you and your bank.
Having a secured credit card is very much like saying, “I’m serious about building credit, and I have the means to back it up.”
Using a secured card to build your credit history
Treat a secured credit card as your stepping stone, a tool to kickstart your credit journey.
As you use your secured credit card responsibly, making on-time payments and keeping your credit utilization in check, you’re not just spending — you’re building your credit history.
The positive financial habits you cultivate during this journey also contribute to the growth of your credit score, opening doors to better financial opportunities down the road.
Choosing the right secured credit card
This part is crucial, especially if you have savings accounts with several banks. Look for low fees, a reasonable deposit requirement that your savings can cover, and perks that align with your lifestyle.
In a nutshell, a secured credit card is the best credit card for credit beginners. As long as you’re armed with an active savings account, you will have little to no problem securing one from your bank.
So take a chance and apply for one, embrace the learning, relish the responsibility, and watch as your credit history unlocks doors to better credit scores and offers.
Start your journey today by creating a Savings Challenge or checking your credit score sa Lista!
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