Get A Secured Credit Card To Rebuild Your Credit

by Alex Foreman - Date: 2010-09-25 - Word Count: 417 Share This!

The recession has spoiled the financial plans of many. Some have maxed their credit cards out, others have used all their life savings to attempt a new startup business or just to get away from their home country and the depressing times, even though it will cost nearly twice as much to do so.

All this will come back to haunt you no doubt, when you realize you are not in a position to repay your debts back on time. When you have a poor credit score, it becomes next to impossible to secure credit facilities. Absence of credit facilities only makes it even more difficult to improve your score. How should you break out of this vicious cycle?

The smartest option is to go in for a secured credit card. That is right. You just have to deposit money in your credit card account and use the same as you would use a debit card. Despite the characteristics being the same as any bank transaction, every transaction will be treated as a credit transaction and you will enjoy an improvement in your credit score every time you use a secured credit card.

Further, you can use the secured credit card to avoid debt traps that usually accompany excessive use of any credit card. You can stick with this approach until your credit score improves and you qualify for low interest rate credit card. Further, the habit of living within your means will help you avoid the temptation of using your credit card for impulsive expenses.

As time goes by, your credit card issuer will be prepared to offer a credit facility that is fixed as a percentage of the amount deposited. A 50% credit limit means that you will enjoy the ability to spend one and a half times the amount that you have deposited in the secured card.

You will pay interest on the amount of credit you enjoy and all this will help you reestablish your reputation in the market. It is important to choose a secured credit card from a reputed company that offers a generous terms and conditions. The last thing you want is to choose the wrong secured card and end up with an even worse for credit report or credit score.

The best place to search for such a secured credit card is the World Wide Web. You can check out the various features and options offered by different companies and choose the best one that suits your requirements and financial needs.

Related Tags: credit card, interest, secured credit card, credit card issuer

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