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”
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 lot of young consumers today are hesitant to apply for secured credit cardaccounts. 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.
4 Pointers for Card Applicants
Request for referralsfrom 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”
Do you have plans to apply for and take out banksecured 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.
A lot of individuals today are still not convinced of the benefits they can get from secured credit cards. So today, we have decided to tackle how such card programs can work to the advantage of consumers, in general.
They can help you gain control over your spending habits. Do you have impulse buying and uncontrolled spending problems? If you do then, a secured line of credit can be a perfect tool for you to keep your credit card spending in check. After all, these card programs tend to come with low spending limits. In fact, consumers, like you, will surely think twice before charging a purchase or a bill on their credit card accounts. This is because once they go overboard they will surely get penalized with overdraft charges as well as with declined transaction fees.