Re: Starting Credit
04-14-2013 07:19 AM
So, if I get a secured credit card $700. In which, $1 spent in purchases equals 1 point. Does that mean, I'll get 700 points to what as my score?. (I want to start my credit) Does 700 points mean a 700 score or all depends how the bank I'm using calculates it to report to the bureau??.
Points you get for spending on credit cards have nothing to do with credit scoring. They are simply reward points that might let you get merchandise, a statement credit, a gift card, etc.
700 reward points would be worth different amounts and useable for redeeming on different things depending on the credit card issuer, but will likely be worth about $7 or less.
You DO have to make regular payments on a secured card. The money you put up front is just a security to ensure that if you fail to make payments, the company won't get totally screwed. By showing you can make payments on a secured card, you build your credit history.