What does it mean to “prequalify” for a loan or a credit card?If you’ve received a notice from a bank or other lender saying that you’ve prequalified for one of their products, it may sound like a firm promise that you’ll definitely get the loan or credit card if you apply. But getting prequalified for a financial product is far from a final decision about whether or not you’ll actually get approved for it. If you’ve been prequalified for a loan or credit card, you should think of it as a “soft yes” to your application, not a firm one.

Whether you’re just getting started with building credit or rebuilding your score, following these best practices can help you improve your credit over time: Pay all of your bills on time and in full every month. Keep your credit utilization ratio low; less than 10\% is ideal. Avoid applying for too many new credit cards within a short period of time. Avoid closing credit card accounts, unless you’re not using them and they charge an annual fee. Check each of your credit reports regularly for inaccurate information. If you find an inaccuracy, dispute it as soon as you can.

If you’re looking to build or rebuild your credit, secured card is often a good way to do that.

Secured cards require a security deposit to be made as collateral once you get approved, but otherwise they function similarly to regular credit cards. By paying your balance on time and in full, you’ll be able to gradually improve your credit score.

If you’re looking for a good secured credit card, please see this CreditCards.org resource:

Best Secured Credit Cards of 2022