Secured Credit Cards Explained [mortgageprotectiontips.blogspot.com]
A secured credit card provides individuals that suffer from poor credit with a credit card option. Secured credit cards typically are collateralized with a cash deposit. Generally the amount of the cash deposit is the equivalent to the line of credit ... Secured Credit Card Receives Top 5-Star Rating from TopConsumerReviews.com
Most people face two problems when deciding whether or not to get a Secured Credit Card are first, not knowing how to choose one, and two, getting the money to secure a credit card. We'll talk about both of those here.
A lot of people believe that it will be expensive to get a secured credit card, but the truth is you can find secured credit cards that have a secured amount as low as two or three hundred dollars. Keep in mind, that when you receive the card you'll be able to use it right away, so even if you can't afford to spend $ 300, and you want to use it for expenses, you can do that, after the card arrives. Just remember, to pay it off at the end of the month if you use it to pay your bills.
Deciding which card to choose can be difficult, as some sites try to deceive you purposely into applying for a card through them, that will do nothing more than cost you each month, and require a lot of money upfront.
There are four things you'll want to focus on: program fees (also called application fees) annual fees, which are charged ever year, Annual Percentage Rates (APR) and how the company reports to the credit bureaus.A few companies are solely in business to charge the huge fees upfront, and will shut you down for the slightest reason, as well as retaining your card balance/security deposit for unknown or unfair. You won't want to work with these companies. A good warning sign to look for is companies that charge so many fees that all you have left of your security deposit is $ 50-$ 75 dollars.
There are several decent Secured Credit Cards out there that don't require an application fee, but nearly all will charge some sort of annual fee - generally between $ 30-50 dollars - and the secure credit card's interest rate will vary by company.
Also, you'll want to make sure you look over their policies and be certain that they report to all three credit bureaus, and often, or else it may not be that much help in building good credit.If you can find a secured credit card company that doesn't charge an application or program fee, has a yearly fee of about $ 50, as well as having a basic APR of around 10% and reports every month to all three major bureaus (Transunion, Equifax and Experian) then you'll have found the perfect secured credit card to go with.
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