Secured Credit Cards
Secured credit cards can be used to :
- Build Credit – Since many don’t pull your credit report, this is a great starter card
- Rebuild Credit – Since they require a security deposit, they usually will not have a minimum credit score required for approval
- Great way to teach your children about credit – Since they must live within a “budget” meaning the credit cards credit line
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.
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.
Continue reading How to Find a Legitimate Secured Credit Card Issuer
Answers to 6 Frequently-Asked-Questions about Secured Credit Cards
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