Q: I am looking to make a secured credit card application or unsecured to help me boost my scores credit. If I request an unsecured credit card, it is my credit score drop when my credit history is pulled? Is applying for a secured card be the best option or is that also let down my score? How can I apply for and obtain a credit card to rebuild my credit score without having my shot credit history and my score negatively affected
A: According to FICO, the 'gold standard credit score providers, application for a new line of credit (either for a secured credit card or unsecured) will not harm your credit score much. In fact, " for most people, an additional credit application will take less than five points behind their FICO score ." When you need to start being careful is if you apply for multiple lines credit (aka, credit cards) over a short period of time. This can be seen as a risky credit behavior and drop your credit score more than one credit card application would be.
it seems one of your main goals is to rebuild your credit history, you should definitely make a credit card application that reports to all three credit bureaus. Some good examples are specifically developed cards for those with poor or limited credit, such as Visa card Orchard Bank and Capital One® secured MasterCard®. However, these cards (like all credit card applications, whether for or secure cards not) will pull your credit report to determine your creditworthiness.
If your biggest concern is the credit card application have no impact on your credit score, you can try a prepaid debit card like PrePaid Visa® RushCard. When you apply for Rushcard no credit check is performed, but it probably will not help improve your credit because it does not appear 3-bureau reports. Instead it makes your payment history to the lesser known (and used) and LexisNexis PRBC®.
If you're worried about how your credit score fluctuates over time (especially when you apply for credit cards or lines of credit), consider signing up for PrivacyGuard. top-rated credit monitoring service ensures PrivacyGuard 3-bureau credit monitoring, as well as monthly updates to your desktop 3 scores and credit reports. Currently NextAdvisor PrivacyGuard offers readers a 30 day trial for $ 1. When you sign up for the trial, you will receive all 3 scores and credit reports, and they are yours to keep even if you cancel during the trial period.