Why You Should Have At Least One Secured Credit Card
Kate Ross
March 13, 2009
Do you have bad credit but you need a credit card? Credit cards are not only useful tools to build your credit score up to its optimum level, but they also provide a convenient means to pay for things quickly and efficiently.
Whether you are paying bills online or shopping at the corner store, its so much handier to use a credit card than to carry around a wad of cash or to take time writing a check. Further, credit cards are much safer than carrying cash, and provide a record of purchases for you. For those individuals with bad credit like yourself, the secured credit card can best suit your needs.
Works Like Any Other Credit Card
A secured credit card looks just like any other credit card that you might have ever seen or used - the only difference is that you make a deposit with the credit card issuer in the amount that you wish to have credit extended to you. Your secured credit card will work like other cards - and will report monthly or quarterly to all three major credit reporting bureaus - Trans Union, Experian, and Equifax. Your secured credit card can bear the Visa, Mastercard, American Express, or Discover logo - depending upon which card issuer you choose to use when you open your account.
Your Deposit Draws Interest
The deposit that you make with the card issuer who grants you a secured credit card will draw interest, just like a savings account, in most instances. When you have established a proven track record of timely payments without exceeding your credit limit, the card issuer will usually return your deposit, plus interest, and convert your secured card account to a regular account in good standing.
You are in complete control of your finances when you have a secured credit card. You can control how much credit is extended to you by depositing more money whenever you want to give yourself a credit line increase. Some secured credit card issuers will even match the deposit that you make (not all will do this- so shop around) in order to give you an even greater amount of purchasing power. You can pay off your balance by making the minimum monthly payment, or you can elect to send in payments that are above the minimum amount to pay your balance off sooner.
Nominal Fees
You will be charged a nominal fee for having a secured credit card. Keep in mind, however, that all credit cards charge some type of fee - and the luxury of having a credit card is well worth the small amount you will pay. The interest that is charged on your secured credit card is usually very competitive with other, regular credit card accounts.
You can find many great secured credit cards online. Online secured credit card issuers often offer perks for customers - such as discounts, airline miles, and even free merchandise for account holders who maintain good payment standards.
Whether you are paying bills online or shopping at the corner store, its so much handier to use a credit card than to carry around a wad of cash or to take time writing a check. Further, credit cards are much safer than carrying cash, and provide a record of purchases for you. For those individuals with bad credit like yourself, the secured credit card can best suit your needs.
Works Like Any Other Credit Card
A secured credit card looks just like any other credit card that you might have ever seen or used - the only difference is that you make a deposit with the credit card issuer in the amount that you wish to have credit extended to you. Your secured credit card will work like other cards - and will report monthly or quarterly to all three major credit reporting bureaus - Trans Union, Experian, and Equifax. Your secured credit card can bear the Visa, Mastercard, American Express, or Discover logo - depending upon which card issuer you choose to use when you open your account.
Your Deposit Draws Interest
The deposit that you make with the card issuer who grants you a secured credit card will draw interest, just like a savings account, in most instances. When you have established a proven track record of timely payments without exceeding your credit limit, the card issuer will usually return your deposit, plus interest, and convert your secured card account to a regular account in good standing.
You are in complete control of your finances when you have a secured credit card. You can control how much credit is extended to you by depositing more money whenever you want to give yourself a credit line increase. Some secured credit card issuers will even match the deposit that you make (not all will do this- so shop around) in order to give you an even greater amount of purchasing power. You can pay off your balance by making the minimum monthly payment, or you can elect to send in payments that are above the minimum amount to pay your balance off sooner.
Nominal Fees
You will be charged a nominal fee for having a secured credit card. Keep in mind, however, that all credit cards charge some type of fee - and the luxury of having a credit card is well worth the small amount you will pay. The interest that is charged on your secured credit card is usually very competitive with other, regular credit card accounts.
You can find many great secured credit cards online. Online secured credit card issuers often offer perks for customers - such as discounts, airline miles, and even free merchandise for account holders who maintain good payment standards.
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