Getting a secured credit card usually mean two things, either an individual is looking for a way to establish his initial credit history or he is looking for a way to re-build an already bad credit history after major life events such as job loss, divorce, grave illnesses, etc.
For whatever reason it may be, credit card secured is one of the best ways, and sometimes the only option, to build better credit history.
If you are planning to get your own secured card, it is only sensible to start asking questions before you sign on one.
Below are some of the most important question you need to ask before you get secured credit cards: What are the charges that will apply? Knowing all the charges and fees that will come with secured cards is vital because it will lessen your grief once the bills start pouring in.
This is where it pays to compare several secured credit cards before signing on.
Know that all secured cards come with various annual fee rates.
Compare the rates and select which one offers the most reasonable rates.
Additionally, always read the fine print because this is where all the charges that will apply are listed down.
How much money is required for the deposit? No secured credit cards are created equal and the same goes for deposit needed.
There are some credit card secured that require $300 while there are others that goes beyond that amount.
The fact remains that the money you will deposit will either be the amount of the credit limit or a percentage of it.
How long will it be before I am qualified for an unsecured card? This will depend entirely on the criteria set by the card issuer.
One such criterion is the ability of the cardholder to make timely repayments.
If the cardholder is able to prove that he can manage his fiancés well, he may be approved for an unsecured card after a year.
Do all banks offer this type of card? The short answer is no, there are some banks that do not offer credit card secured.
Instead, most banks prefer to offer unsecured cards with low credit limit and higher interest rates and fees.
What should I watch out for before I sign on one? The reality is that certain institutions take advantage and extort money from customers even through they are already cash strapped.
They lure desperate individuals on signing one for their card through attractive offers.
One common scheme is to offer the card and require added charges for services such as insurance policy, while others as money for guaranteed cards or loans.
To avoid coming across such dubious practices, it is best to do extensive background checks on all card companies that you are considering.
How do I make the most out of my secured card and how can I use it to build better rating? The best way to use your new card is to make small purchases on it each month.
Remember, it is not a good idea to carry balance on a secured card because it comes with crippling interest rates so be sure to pay off any balance in full each month.
Paying in full will bode well for your credit rating.
For whatever reason it may be, credit card secured is one of the best ways, and sometimes the only option, to build better credit history.
If you are planning to get your own secured card, it is only sensible to start asking questions before you sign on one.
Below are some of the most important question you need to ask before you get secured credit cards: What are the charges that will apply? Knowing all the charges and fees that will come with secured cards is vital because it will lessen your grief once the bills start pouring in.
This is where it pays to compare several secured credit cards before signing on.
Know that all secured cards come with various annual fee rates.
Compare the rates and select which one offers the most reasonable rates.
Additionally, always read the fine print because this is where all the charges that will apply are listed down.
How much money is required for the deposit? No secured credit cards are created equal and the same goes for deposit needed.
There are some credit card secured that require $300 while there are others that goes beyond that amount.
The fact remains that the money you will deposit will either be the amount of the credit limit or a percentage of it.
How long will it be before I am qualified for an unsecured card? This will depend entirely on the criteria set by the card issuer.
One such criterion is the ability of the cardholder to make timely repayments.
If the cardholder is able to prove that he can manage his fiancés well, he may be approved for an unsecured card after a year.
Do all banks offer this type of card? The short answer is no, there are some banks that do not offer credit card secured.
Instead, most banks prefer to offer unsecured cards with low credit limit and higher interest rates and fees.
What should I watch out for before I sign on one? The reality is that certain institutions take advantage and extort money from customers even through they are already cash strapped.
They lure desperate individuals on signing one for their card through attractive offers.
One common scheme is to offer the card and require added charges for services such as insurance policy, while others as money for guaranteed cards or loans.
To avoid coming across such dubious practices, it is best to do extensive background checks on all card companies that you are considering.
How do I make the most out of my secured card and how can I use it to build better rating? The best way to use your new card is to make small purchases on it each month.
Remember, it is not a good idea to carry balance on a secured card because it comes with crippling interest rates so be sure to pay off any balance in full each month.
Paying in full will bode well for your credit rating.
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