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Tuesday, February 24, 2009

Horizon Gold Card

By Daniel Moskel

The Horizon Gold Card is an unsecured shopping card. This means that it is only accepted at a designated website.

Often, people with poor credit scores will apply for this card because it reports to a major credit bureau.

They guarantee approval and do conduct a credit check. There is no minimum income requirement, or employment verification.

The card will be issued with a credit limit of $500, and there are application and monthly fees charged as well.

However this card is only accepted at one location. We highly doubt that the goods sold at this location are quality or durable goods.

In addition, there is the possibility that they could manipulate the prices for the goods that they sell. They also charge a processing fee for every purchase.

Further your account is only reported to one bureau. This can only help one of your credit reports. If a potential lender does not check that bureaus report you are in the same place with or without the card.

It is a wise decision to take steps to improve a low credit score. However this step is not one we suggest.

Instead, consider getting a secured credit card. Secured cards also guarantee approval, but they report to all three credit bureaus.

Secured cards require an initial deposit to secure the card, but the deposit is 100% refundable, provided that you close the account on good terms. In addition, secured credit cards are accepted everywhere.

While it is important to have positively reporting accounts the most effective method of improving your score is by removing negative items on your credit report.

Many people believe that a negative item needs to stay on your credit report for seven years, but this is completely untrue.

The truth is that you do not just have to live with bad credit-every mark can be removed from your credit report.

Congress passed legislation to protect you and your report from unethical lenders and collection agencies. This legislation is the Fair Credit Reporting Act and it says that a negative item can be reported for a maximum of seven years.

There is nothing said about the minimum amount of time an item must be reported. Further mistakes by lenders account for a lot of inaccurate information on your report. It is estimated that 25% of people have a mistake on their report and that is costing them hard earned money in higher interest rates.

To conclude, we do not recommend the Horizon Gold shopping card, we suggest getting a secured credit card instead. Also keep in mind that you do not need to live with a poor credit score. It is your right to contest derogatory items on your report and have these marks removed.

Removing negative items from your credit report is the most effective way to improve your credit score. In addition to providing you and your family with a higher quality of life, you will be afforded the wonderful feeling of knowing that you can be approved for a new line of credit.

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