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Get The Best Secured Credit Card Deal
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What Is A Secure Credit Card?
Simply a secured credit card is a credit card that you pay for up front with your own money. For whatever reason you may now have terrible credit or you have no credit history and need to establish a line of credit and credit card companies offer secured credit cards as a way for you to get credit once again and rise your credit score.
To get one of these cards you need to give the credit card company a sum of money ranging anywhere from the low hundreds into the thousands of dollars. They in turn will take the money you've given them and in most cases will put it into a high interest savings account to use as collateral. Your line of credit from them will then be the amount of money you've given them. Simple isn't it. Sometimes they'll give you a slightly higher credit limit if you make payments on time or you can always deposit more money to raise your credit limit yourself. They only give a limit for the amount you give them in case you don't pay your bill, then they'll take money from your initial deposit to them.
There Are Costs Involved Beyond Your Initial Deposit!
Again keeping with the theme of getting the best secured credit card deal, you need to know the other costs involved. There is almost always an application fee that you need to pay. Then there may be processing/sign-up fees, annual fees and possibly even monthly fees. Always ask the card company about these fees before applying for their secure credit card. The thing is if there are a ton of fees your credit limit may actually go down as the credit card company may take those fees directly from your initial deposit, leaving you with less credit to work with. Always Ask About The Fees No Matter What!
Other Ways They May Use Your Deposit!
Depending on the card company once again, they may take from your deposit if your monthly payment is late. This is very important to know! Other companies may warn you first and give you a few months to make up your late payments and keep you deposit money intact earning interest in a high interest rate savings account.
Will You Get Your Deposit Back
Simply put – You Should! Depending on the company, once you've paid your credit card bill on time, usually anywhere from 6 to 18 months in a row you may then be eligible for a "Non-Secured" credit card. At that time once your "Non-Secured" card is approved you'll receive your deposit money back plus the interest it has earned in the high interest account. This is important, make sure you get your money back and that's why making payments on time is important, so they don't take money from your deposit.
Will Your Credit Improve?
That's important to look for when searching for the best secured credit card deal! Your credit should improve but ONLY if your credit card company is reporting your current history to all three major credit card bureaus. If the bureaus don't know you have been establishing good credit for the past year how can your credit history improve? It can't so make sure to ask them if your payment history is going to be reported to all the major credit card bureaus.
**Find The Best Secured Credit Card Deal You Can – But Beware Of The Scams!
This is the unfortunate part of using any credit card really but there are companies that prey on unsuspecting individuals looking for the best secured credit card deal possible. They'll say things like "Bad Credit, No Credit, No Problem" or call this toll free number today and sign up for a secured credit card totally free. So don't be fooled even if you're in a bad financial situation. You need to go with a reputable well-known company and stay safe!
For more information on credit card scams go to the Federal Trade Commission's Secured Credit Card Marketing Scams page.
This page was created to help you learn more about how to get your credit back. And now that you're on your way it's a good idea to learn how to save more money instead of spending more money. So have a look around this site as you'll find a lot of safe and secure ways to earn interest on your hard earned money!
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