Choosing the
best secured
credit card
for your
situation is
no simple
task. There
are
literally
hundreds of
issuers
offing
secured
credit
cards.
Before
selecting a
secured
credit card
you will
need to
remain
mindful of
the reason
you are
applying. Be
sure to
select the
secured card
that will
best match
your
financial
situation
such as your
income and
your ability
to repay.
A secure
credit card
works nearly
the same way
as an
unsecured
credit card.
You are
responsible
for your
line of
credit and
you make
monthly
payments on
any balance
you have
acquired.
Just like
unsecured
credit
cards, your
secured card
may carry
application
fees,
interest
rates,
finance
charges, and
annual fees
in addition
to any late
fees and
penalties
you may
incur. Your
secured
credit card
will require
you to
deposit
security
funds into
an account
to be used
as
collateral
for use of
your card.
In most
cases,
secured
credit cards
carry higher
interest
rates and
annual fees
than
unsecured
credit
cards. There
are finance
charges
based upon a
percentage
of your
current
balance. As
with
unsecured
credit
cards,
you’ll want
to choose a
secured
credit card
with low
interest
rates, and
low fees.
Most
reputable
secured
credit card
issuers will
pay you
interest on
any security
funds you
have
deposited.
The interest
rate you
will earn on
your
security
funds can
range from 1
to 4
percent. You
will want to
consider the
interest
rate the
issuer pays
based on the
amount of
money you
deposit. For
example, if
you deposit
$100.00, the
amount of
interest the
issuer pays
may not be
of great
concern. If
you deposit
$1000.00 the
interest
rate the
issuer pays
may require
careful
consideration.
Keep this in
mind when
making your
choice.
One of the
most
important
aspects to
consider may
be credit
agency
reporting.
Does the
secure
credit card
issuer you
have
selected
report to a
credit
agency? You
must
remember the
main reason
for having a
secured
credit card
is to
establish or
re-establish
credit.
Please
select a
secure
credit card
issuer that
reports to
the credit
agencies.
You want
your account
information
to show up
on your
credit
report as
paid or
paying as
agreed each
month. It is
also
important to
select an
issuer that
does not
report your
account as
secured.
When
selecting a
secured
credit card
it is
important to
be mindful
of secured
credit card
scams. There
are many
unscrupulous
individuals
and
companies
that will
take
advantage of
you and your
financial
situation.
Some of the
signs to
watch for
are 900
numbers and
misleading
information.
Avoid the
offers that
read, “Bad
Credit, No
Credit, No
Problem…
Just call
900-555-5555.”
Chances are
you will be
charged
unnecessary
phone
charges and
could end up
paying
hundreds of
dollars for
useless
information.
You can also
avoid being
scammed by
reading
carefully.
There are
some
companies
that
purposely
leave out
information
about
deposit
amounts,
application
fees, and
other
processing
fees so be
sure to read
the terms
and
conditions
carefully
when
selecting a
secured
credit card.
Compare the
Best Secured
Credit Cards
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