What You Should Know Before Applying For A Secured Credit Card
If you've had some financial difficulty or found yourself in over your head with credit cards, you might be hesitant to have credit cards. Unfortunately, credit cards are almost a necessity in today's society. If you plan to travel you need a credit card to make car, hotel or plan reservations (even if you plan to pay cash once you arrive at the airport or hotel)!
If you've never had credit or are have earned a poor credit rating from past financial problems, it may be very difficult for you to obtain a credit card. It's possible however, that you would be able to obtain a secured credit card.
What Are Secured Credit Cards?
A secured credit card is much like a debit card. Your credit line is equal to the amount of cash you deposit onto the account. So if you make a $300 deposit on your secured credit card, you'll be able to use the card up to $300. Some banks that issue secured credit cards will allow you to add to your initial deposit in order to bring your available balance up higher, and some will increase your available credit line without your having to make deposits, provided you make your payments on time.
What Charges and Fees Are Charged to Secured Credit Cards
The fees on secured credit cards depend on the issuer of the card you get. Almost every secured credit card charges an annual fee, but the amount can vary dramatically from just a few dollars to a couple hundred dollars annually! This is the price to pay to re-establish your credit, basically. It makes sense to shop around though, to find a secured card with the lowest annual fee. Credit Unions sometimes offer their members no annual fee secured credit cards with low interest rates. It's important that you understand the extent of the fees you'll be required to pay, because there have been reports of people obtaining secured credit cards only to find their entire deposits have been eaten by the fees before they ever had a chance to use the card!
What is the Minimum Deposit to Get a Secured Credit Card?
While it will depend on the issuer of the secured credit card, you can expect to pay between $300 and $500 as the minimum deposit, and that your credit limit will be the amount you deposit, or a percentage above your deposit.
What to Avoid When Shopping for a Secured Credit Card
While secured cards can help people establish or rebuild their credit, and can give people the ability to make online purchases or reservations in addition to the daily spending that can be done using a credit card; secured cards are not always what they seem. Be sure to read the fine print of a secured credit card's terms and agreements. There are some card issuers who are out to take advantage of people who are in a difficult financial situation- when you get your secured credit card and make your first deposit, you might learn that you are required to purchase an insurance policy for $50 or $60 each month. Legally, the secured credit card must disclose this information to you, but you might have to look at it closely to find it!
Provided you take the time to research your secured credit card options before signing up for one, they can really help you build your credit. Secured credit cards report your payment transactions to credit bureaus, so you have a way to show you are making payments on time. This will result in a higher credit score over time and the ability to eventually get a regular loan or credit card that isn't secured.
Related Tags: credit card, credit, interest, secured, debit card, ipr, debit, charges, bank statements
This article is courtesy of CreditorWeb.com, where you can compare business credit card offers and apply for a credit card online. Your Article Search Directory : Find in Articles
Recent articles in this category:
- The Secrets to Getting Low Down Payment Car Insurance
Upon purchase of a new car, there is almost always a requirement to buy an auto insurance policy as - The Wisdom Behind Auto Insurance Comparison Quotes
No one in his right mind would not go for a good deal. In fact, everyone is out on their feet and ru - The Benefits of Auto Insurance Comparisons Florida
Insurance can be expensive. This is something everyone knows about especially in the sunny state of - Auto Insurance Florida: The No-Fault Policy
There are different kinds of car insurance offered by a wide range of providers today. Different sta - Finding the Cheapest Auto Insurance Companies
Everyone is asking and searching for the cheapest auto insurance companies available today. Consider - How do You Compare Private Health Insurance Cover in Australia?
Deciding what is the best and most affordable private health insurance cover can be easy if you take - How Payment Protection Insurance Was Mis-Sold
For over six years the issue of Payment Protection Insurance (PPI) and how it was mis-sold to custom - Finding Quotes For Auto Insurance Online
One of the many concerns when you are shopping for auto insurance is being able to get access to quo - How You Can Find the Best Auto Insurance Online
When it comes to renewing your car insurance you are going to quickly discover that there are a numb - Guidelines For Searching For Auto Insurance Online
The internet can be a great source of discounts and values related to auto insurance. However, many
Most viewed articles in this category:
- Trading Forex With Pivot Points
Forex Pivot Point Trading are used today by Forex Traders and are calculated on the previous days mo - Where To Search For Free Grants
Where do you look for free grants? The search must be thorough or it could be an exercise in futilit - The Connection Between High Blood Pressure and Salt
We are a society of Salt Addicts. It cannot be denied. When you look at the things we do and the pla - Tips For Avoiding HYIP Scams
Before knowing about HYIP Scams, refer to the functioning of HYIP or "High Yield Investment Programs - Getting Credit After Bankruptcy
Consumers do not have to live sans credit following a bankruptcy. By following certain steps consume - Tips For Choosing A Credit Card
Are you looking for that perfect credit card? If so, you may be confused about what exactly to look - Cheap Car Insurance For Teens Online
Many elements determine a car insurance policy. Car insurance companies look at the person's age, hi - What Exactly Is Free Grant Money?
You can apply for free grant money from various government agencies. But where exactly does this mon - Small Business Owners Marketing and Customer Service
Marketing can be time-consuming, but it doesn't have to be hugely expensive now, thanks to the Inter - Apply Online For A Credit Card - How To Choose A Card?
The best type of credit card for you will be dependant on how you intend to use the credit card. Are