In the current economy with the national unemployment rate hovering around 9.5% more and more people are finding themselves in a position they never dreamed they would be in: out of work and deep in debt. It doesn’t take long before the choice becomes paying a bill that is due or putting food on the table. Most of us would choose putting food on the table. Unfortunately, not paying your bills starts you  on the spiral towards decreasing your credit score.

Why should you care? Hopefully, your current misfortune will not last forever. Some day you will find yourself in the position to consider buying a new car again or even a home. That is when you want your credit score to be as high as possible. As with most things in life, it takes longer to restore your credit score than it does to ruin it.

One of the tools available for rebuilding your credit score, is to get a  secured credit card. The First Bank of Delaware offers the Granite Secured MasterCard®. Secured credit cards require you to have money in an account with the bank to secure the purchases you make with the credit card. This is not the same as a debit card. With a debit card you only spend money you already have in your bank account. That part is the same for this secured credit card. However, with a debit card the money is immediately withdrawn from your account.

With a secured credit card you are also limited to the amount of money in your bank account. However, you send in payment for your secured credit card bill every month instead of it being immediately deducted. Make sure you keep up with your payments. Late fees on secured credit cards can be steep.

There are many secured credit cards available. Each with different features. The Granite Secured MasterCard® offers the following features:

A typical line of credit of $500 which can range up to $5000

There is an annual fee which will reduce your possible maximum line of credit to $4940 since the current annual fee is $60.

Interest payments on the money deposited to secure the credit card

Most banks do not offer interest on the money deposited into an account to secure a credit card. Granite Secured MasterCard® does. Currently the First Bank of Delaware is paying 1% annual percentage rate on their savings accounts.

Monthly credit reporting to the three major credit bureaus

This is very important in order to restore your credit score. Other than being a matter of pride, it does you no good to make all your payments on time, if the credit bureaus do not find out about it. If you went through difficult times that affected your credit score, you need to make sure your efforts to restore your credit are being noticed.

Fast credit card application processing

You can apply for a  Granite Secured MasterCard® online. It will only take a few minutes and you won’t have to wait long to find out if your application has been approved.

So what does improving your credit score do for you? It allows you to qualify for lower interest rates on future loans. Most of the purchases you are likely to make in the future are not affected by your credit score, but a home purchases and a vehicle purchase are. Your best approach to getting back on the right track is to start putting away money in a savings account while handling a secured credit card. Pay off your secured credit card balance every month, so you don’t build up more expenses than you can reasonably afford. Remember, you are best off if you consider this secured credit card as a credit reporting tool, not a financial loan. Budgeting is an important part of getting back on track.