Answers to 6 Frequently-Asked-Questions about Secured Credit Cards

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Today, let’s consider the answers to six of the most frequently asked questions about secured credit cards. We believe that by knowing the answers to such queries, we can empower our readers to make the right decisions, not only in terms of picking suitable lines of credit, but also in terms of managing their existing credit card accounts.

Question 1: Why are they called “secured’?

Answer: The modifier secured is used to describe the most striking feature of these card accounts – that is, the existence of collateral, which comes in the form of a security deposit. The collateral in secured cards serves as a guarantee for the repayment of the bills and expenses that will be charged by cardholders on their respective accounts. Should they decide to deliberately default on their monthly bills, card issuers can simply use the deposit provided to settle the unpaid credit balance. Continue reading “Answers to 6 Frequently-Asked-Questions about Secured Credit Cards”

Secured Credit Card Management Tips for the New Year

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Are you a secured credit cardholder? And is responsible management of your current line of credit one of your main goals for the year? If your answers to these two questions are YES and YES then, we advise you to keep the following secured credit card tips in mind:

Never pay your bills late. Did you know that missing out on your monthly payments can be disastrous not only to your credit history but also to your personal finances? That’s because paying your bills late will not just inflict damage to your credit profile. It can also cost you a great deal of cash, in the form of late payment penalties and other surcharges.

Hence, if you wish to keep your credit payments minimal and to maintain a high credit rating then, you should resolve to keep up with your secured credit card bills. If you find it difficult to remember your due dates; we advise you to set up personal alerts and reminders in your mobile phone and even in your portable devices. Better yet, sign up for automatic payment arrangements with your bank so that you won’t have to worry about missing out or skipping on your bills, anymore. Continue reading “Secured Credit Card Management Tips for the New Year”

A Closer Look at Unsecured Credit Cards

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Are you looking for information that can help you gain a deeper understanding and appreciation for unsecured credit cards? If your answer to this is YES then, this article is made just for you.

In the paragraphs below, we have listed and discussed things consumers like you should know about these card programs which can eventually help you should you decide to apply for one, in the next few months.

Fact 1: Unsecured credit cards are not made one and the same. They carry widely-varying rates of interest, fees and charges, payment terms and options, credit limits, and eligibility requirements.

Hence, if you wish to receive a line of credit that matches your needs and preferences, it is very important that you take the time to compare the features imposed on various programs. In so doing, you can soon find one that matches your needs, preferences and expectations. Continue reading “A Closer Look at Unsecured Credit Cards”

How can I Maintain a Low Rate of Interest on My Unsecured Credit Card Account?

Are you interested to know how you can keep the interest rate on your unsecured credit card low? If you are then, we advise you to carefully observe the following pointers:

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Keep up with your credit card bills. The most important step you can take to prevent your card issuer from raising your interest rate is to simply pay your bills prudently and completely. Make it a point to submit early or on-time payments to your card issuer. That way, you can avoid shelling out huge funds on pesky fines and penalties such as late payment fees and surcharges. At the same time, such habit will help you build and maintain a solid credit profile, which normally determines the features that will be imposed on your card account.

And that’s not all. We also encourage you to settle your bills in full, each month. Always remember that submitting complete payments to the credit card firm will not only help you avoid incurring huge interest charges. More importantly, it can prevent your credit rating from sliding down and your rate of interest from going up. Continue reading “How can I Maintain a Low Rate of Interest on My Unsecured Credit Card Account?”

Which Should I Get – a Secured, an Unsecured, or a Prepaid Credit Card?

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Many consumers nowadays find it difficult to make up their minds and choose a credit card program to take out. After all, there are plenty of options available in the market.

Still, we wish to stress the fact that no line of credit is superior over the others. That’s because each credit card program, be it prepaid, secured or unsecured – is designed to meet the widely-varying needs, preferences and budgets of prospective cardholders.

Now, how can a card applicant, like you, pick a suitable card account? To find out the answer, we suggest you pay close attention to the paragraphs below. Continue reading “Which Should I Get – a Secured, an Unsecured, or a Prepaid Credit Card?”

How to Jump-Start Your Credit History, This Year

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Are you interested to know how you can build a solid credit profile in the current year? If you are then, you’re not alone. That’s because more and more consumers these days are looking for strategies they can use to gradually build their credit history so that soon they can also enjoy excellent financial prospects.

But is it difficult to attain such goal? NOT AT ALL! In fact, there are tried-and-tested tips you can use to jump-start your credit history. To learn more about them, please pay close attention to the remainder of this article.

An Important Financial Step

You can never establish your credit history UNLESS you will apply for and take out a credit program – either a personal loan or a credit card account. This is why you should take the time to look for companies that can extend you a line of credit, despite your lack of credit history. What can help you succeed in this matter? Continue reading “How to Jump-Start Your Credit History, This Year”

Why Apply for a Credit Card Today

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Are you wondering why finance experts constantly encourage consumers, like you, to sign up for a credit card? If you are then, this article will surely provide you the answers you’ve been searching for.

In the remainder of this piece, we have enumerated and discussed the top two reasons why consumers, young and old, are advised to get and manage a line of credit.

To jump-start your credit history. Did you know that your chances of receiving affordable loans and card accounts would greatly depend on your credit history? In fact, without one, you will surely find it difficult to convince lenders to grant you the funds or credit card programs you will wish to use for covering your day-to-day expenses.

This is the reason why we advise our readers to jump-start their credit history, as soon as they can. And to do this, they can simply sign up for bank secured credit cards. After all, issuers of these card programs do not run credit checks on their prospective cardholders. So long as you can submit a security deposit to your chosen firm, plus the necessary forms and personal documents, you can soon be granted a card account you can use for building your credit profile.

Continue reading “Why Apply for a Credit Card Today”

How to Find a Legitimate Secured Credit Card Issuer

A lot of young consumers today are hesitant to apply for secured credit card accounts. That’s mainly because they find it too risky to take out lines of credit from banks and credit card firms, nearby. Still, there are simple techniques you can use to find a credible company. To learn more about them, we suggest you read the rest of this article.

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4 Pointers for Card Applicants

Request for referrals from your close friends, relatives and immediate family members – especially from those who have just applied for secured lines of credit. For sure, they will be more than happy to help you out not only in finding credible issuers but also in picking a suitable card program.

A gentle reminder though. Bear in mind that what one consumer might consider excellent card features may not always be similar to yours. So, even if you’re grateful for your friends and relatives for helping you scout for legitimate firms and credit cards, still you should never let them decide for you. Instead, you must use your deep understanding of your personal needs, spending habits and financial capability in choosing a line of credit that will surely work to your advantage. Continue reading “How to Find a Legitimate Secured Credit Card Issuer”

5 Things to Think About when Scouting for Bank Secured Credit Cards

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Do you have plans to apply for and take out bank secured credit cards? If you do then, we encourage you to carefully consider these five things:

Your needs and spending habits. Always remember that secured lines of credit are designed to meet the specific needs and spending habits of a certain group of consumers. This is the reason why it would not be wise on your part to immediately apply for one without considering first how you intend to use your future card account and whether or not it would suit your preferences.

Hence, you must find time to research on these card programs. Gather as much information as you can on how they work and what their stand-out features are. Then, compare them with what you need and what you want to enjoy in a credit card. By doing so, you will soon realize if a secured card account would be a perfect match for your personal needs and spending habits.

Continue reading “5 Things to Think About when Scouting for Bank Secured Credit Cards”