Secured credit cards

Rebuild Personal Credit with a Secured Credit Card


Good credit is essential but sometimes, circumstances may lead one to bad credit. If you have bad credit history, there is a way to rebuild your personal credit and you can start by using the right tool. In this article, let us discuss how a secured credit card can help you.

What is A Secured Credit Card?

A secured credit card is linked to the cardholder’s deposit account. When you apply for a secured credit card, you are expected to deposit cash in your account. This gives your bank or credit card issuer a solid assurance that in case of default, funds are readily available which can be used to pay debts. For this reason, anyone can easily acquire a secured credit card, regardless of his/her personal credit rating.

Facts about Secured Credit Cards

What are the Benefits?

benefits of secured credit cardsUsing a secured credit card has many benefits. Let us talk about these benefits one by one:
Secured credit card is a recognized method of payment. A secured credit card can be used for purchasing an item or paying a bill just like a regular credit card. It can be used when shopping from a regular store or when ordering online. All the conveniences that paying with a credit card offers can be enjoyed by the secured credit cardholder.

Only between you and your issuer. No one needs to know that you have bad credit or that the type of you credit card you’re using is a secured one. The term “secured” is not printed anywhere on the card. This fact is just between you and your credit card issuer.

Report payments to the credit bureaus. Credit reporting is a must in order to rebuild bad credit. Hence, as you use your secured credit card regularly and as you submit your payments on time, you are proving your credit worthiness.

Exercise control over your personal spending. If overspending is an issue, using a secured credit card can be a good training to develop responsible credit management. Since credit limit is limited to the amount of security submitted, the cardholder is encouraged to be more cautious in making charges.

FAQ: Secured Credit Cards

How Can You Rebuild Bad Credit?

To rebuild bad credit, your main goal should be to use your account wisely and to submit your payments on time. You cannot afford to be late paying your credit card bills. You need to be very conscious about your due date and do your best to submit before the deadline arrives. Most importantly, you need to consider if you can afford a particular purchase or bill before charging it to your secured credit card.

About the Author
Tara Tiemann is a credit analyst for Go-prepaid.com which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards, prepaid credit cards and prepaid cell phone service can save you big money!

It is also recommended that you order your personal credit report after six months of using your secured credit card to see check your progress. See to it that there are no errors or unauthorized charges in your report which could cause your credit score to drop.


About Liz Roberts

Liz Roberts is the new credit specialist for Go-Prepaid. If you are on a budget, we can get you discounted cell phone service from Sprint, Verizon and T-Mobile! NO CREDIT CHECK ! Using a prepaid services can save you a TON of money! Follow our blog to find out how!

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