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”

Practical Suggestions for First-Time Credit Cardholders

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Managing your very first line of credit may not be that easy especially if you find it difficult to control your spending habits. Good thing that in this piece we have enumerated and discussed guidelines that will help you manage your prepaid, unsecured or secured credit card in the best way possible.

Make it a habit to check the available balance on your credit card before using it to cover your bills, purchases and expenses. This is very important for you to keep your credit utilization, otherwise known as your debt-to-limit-ratio, low. After all, with a low debt-to-limit ratio you can expect to build and maintain an excellent credit reputation, which will in turn help improve your chances of qualifying for affordable credit deals, later on.

Furthermore, this tip will surely prevent you from making extra payments on overdraft charges and declined transaction fees, which could eat a huge portion of your personal budget. Continue reading “Practical Suggestions for First-Time Credit Cardholders”

Things to Remember when Charging Purchases on Your Credit Cards

Uncontrolled spending is one of the reasons why a lot of Americans today struggle with huge financial obligations. They don’t pay close attention to the transactions they charge on their respective accounts. In time, such decision backfires on them in the form of huge debts they often find very hard to pay back.

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This is the reason why we have decided to enumerate and tackle below several pointers consumers, like you, should keep in mind when using their prepaid, secured or unsecured credit cards to cover their purchases and bills.

Determine if you can really afford to settle your credit card charges, in full. This might entail a close examination of your personal or household budget to check if you have sufficient disposable income you can use to cover your subsequent bills. If you discover that you’re actually living paycheck to paycheck then, it might be wise to temporarily stop charging your expenses on your account until you can completely pay off your debt. On the other hand, if you think that you have more than enough cash to settle your charges in full then, we give you the go-signal to use your lines of credit in your favorite shops and stores. Continue reading “Things to Remember when Charging Purchases on Your Credit Cards”

Prepaid Credit Card Management Tips for Frequent Shoppers

Regular shoppers will surely benefit from the pointers tackled below. That’s because in the remainder of this piece, we have listed down and discussed practical suggestions you can use, not only for ensuring the security of your offline and online transactions, but also for avoiding pesky fees and charges.

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Always check the available balance on your prepaid credit card, before using it to cover your bills and expenses. Keep in mind that you might incur huge fines and penalties, such as declined transaction fees and overdraft charges, if you won’t pay close attention to the funds you can still use on your account.

Hence, you should make it a habit to determine the amount of cash available on your prepaid account before charging your purchases on it. Continue reading “Prepaid Credit Card Management Tips for Frequent Shoppers”

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”

6 Financial Tips for Young Credit Cardholders

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If your parents have just given you your very first credit card and you wish to know how you can manage it in the most responsible way you can then, we advise you to keep the following pointers in mind:

Use it to cover ONLY your important purchases and bills. Resist the urge to charge unnecessary or unscheduled expenses on your credit card, especially if it has a low spending limit or cap. Instead you should resolve to use it only for extremely important purchases, like when you need supplies for a school project or when you need to purchase a textbook from a bookstore, nearby.

Make sure you don’t go overboard. What does this tip mean? Credit cards in general come with spending limits or caps. Such features would tell cardholders the available balance they can use on their respective lines of credit. Continue reading “6 Financial Tips for Young Credit Cardholders”