Credit Cards (US)

How to graduate to an unsecured credit card

Congratulations! You're ready to graduate from a secured credit card to an unsecured one. Here's how you can do it without any drama.

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Graduate to an unsecured card and boost your credit score!

With some discipline, you can get your unsecured credit card. Source: Canva.

Are you ready to graduate from a secured credit card to an unsecured one? Congratulations! This is an important step in building good credit. While it may seem intimidating, graduating with an unsecured card doesn’t have to be difficult or complicated. 

This blog post will discuss how you can graduate with an unsecured card and decide which route is best for your situation. 

With the right lenders, rates, and terms, you’ll soon be well on your way toward having a healthy credit profile with access to new forms of financing and better spending limits. 

Stick with us until the end and find out exactly how you can make this happen!

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How to easily transition from a secured to unsecured card

Moving beyond secured cards can seem intimidating, but it doesn’t have to be. There are many great unsecured options if you know what you need to qualify. And we’re here to help you figure out the best way to succeed! 

In this blog post, we’ll go over everything that goes into transitioning from a secured cardholder to an unsecured one and provide some tips on how you can ensure that your application process is smooth sailing.

1. Make every payment on time

Using your card is great, but remember to pay it on time! Source: Canva.

Making sure you make all your payments on time is one of the best things you can do to safeguard your credit score. 

Whether it’s online, in cash, or with a graduate unsecured card, committing to this good habit will keep you in good standing with creditors and open more doors for you in the future. 

Late payments on credit cards and loans can cause interest rates to skyrocket, which can be hard to climb out from. It’s worth building a strong financial foundation so that you’ll have access to better opportunities later down the road.

2. Set up email and text alerts

Upgrading your credit arsenal with an unsecured card can be daunting. Unsecured cards can offer great benefits and rewards, but sometimes come with higher interest or fees. 

Start by setting up email and text alerts to graduate with an unsecured card. This way, you know when your payment deadline is approaching so you don’t miss a payment. 

On top of this, having the right notifications will give you the information you need to stay on top of your spending and keep it in check. 

With the right setup, graduate to an unsecured card with more confidence and greater control!

3. Keep the total of your purchases lower than the total credit available to you

Congratulations! You’ve decided to graduate with an unsecured credit card — this is a great first step toward establishing and building credit. 

The most important advice to follow when getting started with your new card is to keep your purchases lower than the total available credit. 

improve your credit score

Improve your credit score easily with these tips

Improving your credit score is one of the most important things you can do, and we’ll provide some easy tips on how you can achieve that goal quickly and without stress.

This is an important factor in determining your credit score, and it’s a habit you’ll want to keep up as you use this card since other issues, such as repayment history, will come into play in the long run. 

With responsible use now, you can ensure a smooth sailing journey all the way to financial success!

4. Check your FICO score and credit reports often

To upgrade to an unsecured card, you’ll have to be a responsible cardholder. Source: Canva.

Graduating from a secured credit card to an unsecured card may seem intimidating, but the process can actually be quite easy. 

The key is to keep an eye on your FICO score and credit reports to ensure that you are in good financial standing. If your numbers look good, you’ll likely qualify for a regular, unsecured card and graduate with credit status! 

Acting responsibly with any type of card you apply for is also decisive — paying off balances on time and not exceeding credit limits will all factor into your success. 

Once all of these measures are met, it should be easy to graduate to an unsecured credit card.

5. Stay on top of all forms of credit and bills

Graduating with an unsecured credit card is a great way to improve your finances. Unsecured cards usually have more flexible spending limits and receive more rewards than secured cards. 

To graduate, the most important thing you need to do is keep your debt payments up-to-date and take care of any other bills you may have. 

By staying on top of your various forms of credit, you’re showing creditors that you’re responsible with money and can be trusted with a larger line of credit. With some hard work and determination, graduate to an unsecured card in no time.

Some sign that you’re ready to graduate to an unsecured credit card

Graduating with an unsecured credit card is a big step, but it can also be a great financial reward. Once you reach this stage of growth and responsibility with your credit, there are four notable signs that this upgrade is in your future. 

First, if you’ve been responsible and proven over time that you use credit responsibly, it bodes well for being eligible to graduate from a secured to an unsecured card.

Secondly, if your credit score has improved consistently for multiple months, that’s a good indication that you’re ready for the next level of credit provision. 

Thirdly, if your financial institution lowers its requirements on additional deposits and raises your limit without such demands, you know they trust your spending behavior. 

Finally, when your secured card issuer lets you know outright that you qualify to graduate with an unsecured card, it means you’ve done the hard work and earned the reward!

Credit Card red flags you should steer clear of

Do you want to stay out of debt and get the most from your credit cards? Knowing what to avoid can help. Red flags may indicate that a card isn’t worth using or could cause unwanted confusion and headaches when it comes time for repayment.

 Nobody wants that! Read on our next post for some common red flags associated with credit cards, so you know just how to spot potential problems before committing.

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