Written on 2:00 PM by zorayda
A
secured credit card is just that; a credit card secured by a deposit account held by the cardholder. The card holder may then deposit anywhere between 100-200 percent of the amount of credit as he may desire. But sometimes the credit card issuers may reduce that to only 10 percent. From the issuer standpoint, the
secured credit card is better as there are fewer delinquencies when the cardholder suspects he may lose something by not paying.
From the cardholder's standpoint, a secured credit card can serve the purpose of building your FICO scores. For these types of cards, everyone is invited.
For the sake of prudence, it has to be said that secured credit cards make the better choice. Since you cannot spend beyond the amount secured, it is unlikely that you will bury yourself in debt. That way you can start building a good credit history, but make sure that the credit card issuer reports your record to the credit bureaus.
The credit card holder in this case is expected to make regular payments to meet the amounts charged on the card. The deposit will only be used if the account is closed either at the customers request or after excessive delinquency. So there is no question of you forfeiting your deposit in the event of just one or two defaults. Also, the annual fees for many secured credit card in the market tend to be reasonable, unlike some available credit cards. The fees may be as low as $30 whereas for other cards, the fees could go up as high as $50.
Read more>>>>
Posted in
secured credit card,
secured credit cards
|
Written on 11:11 AM by zorayda
People are often encouraged to build their credit history or improve their credit scores by obtaining credit. Ironically, most lenders require excellent credit before they grant an approval. If your problem is that you have never had credit or you have a poor credit score, chances are your application will be declined. Do you have other options? Fortunately, yes!
Best secured credit cards are made especially for people with problems with their credit score or for people who haven’t yet started building a credit history of their own. That’s right. Even with poor credit or even with no credit at all, you can still get approved if you apply for a secured credit card. Does this prospect interest you?
What is a secured credit card and how do they differ from regular good credit cards? As the name suggests, this type credit card requires a security deposit from the card holder. The credit card company uses your security deposit as collateral just encase you stop making timely payments they will simply use your deposit to pay the card off.
How much is the security deposit? The minimum amount required depends on your credit card issuer but typically, it ranges from $300 to $1,000. Your credit limit will often depend on the amount of money you deposited as security. Usually, your credit limit will be 50% or equal to the amount you deposited. There are some secured credit cards however that give a credit limit that is doubled your security deposit.
What about the interest rate? The interest rates on
secured credit cards are expectedly higher than credit cards for good credit. Still, this doesn’t mean you should settle for unreasonably high rates. Do your research and you’ll surely find a secured credit card with reasonable rates and fees.
Read more:
Secured Credit Cards – Tools to Good Credit
Posted in
best secured credit cards,
secured credit cards
|
A secured credit card is just that; a credit card secured by a deposit account held by the cardholder. The card holder may then deposit anywhere between 100-200 percent of the amount of credit as he may desire. But sometimes the credit card issuers may reduce that to only 10 percent. From the issuer standpoint, the secured credit card is better as there are fewer delinquencies when the cardholder suspects he may lose something by not paying.