Secured Credit Card Scams?
You notice that the ad is designed to appeal to a wide variety of clientele with one thing in common, which is a hardship has placed them in a vulnerable spot and they want to believe there is a way out.
Government sites are there to let everyone know that there is a solution but at the same time, you the customer, need to do your homework. So what is this homework?
First of course is keep a cool head, then get information and check the secure credit card offers with a bit of healthy skepticism.
Let's start with what is a secured credit card?
Most credit cards are give you a line of credit based on your credit history. They do not ask you to place anything on the line except your good name and your signature.
But what if your good name is tarnished and your credit report shows it? Then cash is required. A secured credit card issuing company requires you to open, fund and maintain an account as security for your line of credit.
This required savings deposit could be as much as several thousand dollars. And your credit line, the amount you can use, could be as low as half of what you deposit.
Hopefully you get an interest on that deposit but when was the last time that the savings account deposit even came close to the charges on your credit card.
You may also have to pay application and processing fees to get started.
Does this mean to avoid a secured credit card at all costs? Not at all, it just means to watch out for scams. Don't send money to an organization you know nothing about. Don't call a 900 number for information. Read the fine print and above all, keep a cool head.
* DISCLAIMER: Vishy Dadsetan, MyPersonalFinance.com or My Favorite Shop, Inc. do not endorse any product or company. This article and website do not provide legal, insurance, or other professional services. If expert assistance is required, the services of a competent professional should be sought. Although Vishy Dadsetan has made every effort to ensure the accuracy and completeness of the information contained in this site, he assumes no responsibility for errors, omissions, inaccuracies, or inconsistencies.
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© Vishy Dadsetan Vishy Dadsetan writes articles that can actually help your clients. Articles that make sense. Articles just like this one. For more information about free credit report online and bad credit credit card checkout MyPersonalFinance.com/blog/
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