What You Ought To Know About Secured Credit Cards

Getting approved for a credit card can be easy if you have good credit. Nevertheless, for people with bad credit or have yet to build credit history, getting approved for a major credit card can be tough. Popular credit cards often have strict qualifications and if your credit score falls below average, your application may get instantly rejected.

The good news is that consumers who need access to plastic payment yet can’t get a regular credit card have other options. For instance, you can always get a secured credit card. Unlike a regular credit card, secured credit cards are especially created for people with bad credit and no credit. This is because approval is not based upon the applicant’s credit history at all. If you meet the issuer’s basic requirements and if you can submit the minimum security deposit, then you can be assured that your application will be approved.

Applying for a secured credit card can be easily done online. You can fill out an application directly from the issuer’s website. Within a few minutes, you will be notified about the result of your application through email. Once approved, the issuer will send your secured credit card to your post office address within 4 to 5 banking days. You may also choose to pick up your card from the bank or issuer’s location.

Secured Credit Card Fees and Terms of Use

Secured credit cardholders are often provided with a lower limit. See to it that you do not max out or exceed this limit since the penalty fee or over-the-limit fee can prove to be stiff.

The interest rate is expected to be higher as well. APRs on secured cards can range anywhere from 14.9% to as high as 22.9%, depending on the issuer. As much as possible, you should pay your monthly credit card balance in full to avoid incurring APR charges.

What about annual fees? Most secured credit cards carry annual fees from $29 to $59. Sometimes, this fee can be waived or reduced on your first year but you will still incur the regular fee on the second and succeeding years to keep your account active.

Of course, timely payment is very important. Aside from avoiding the late penalty fees, how you manage your repayment can affect your personal credit. In fact, a secured credit card can be your partner in building credit or repairing bad credit through regular use and timely payment.

After 12 months of consistent payment, your issuer may automatically upgrade your account so you can enjoy the benefits and privileges that unsecured cardholders enjoy. However, not all secured credit card issuers offer this provision so you should check the fine print before signing up.

Indeed, consumers must spend time reviewing their options and take a closer look at what each secured credit card has to offer. Needless to say, the best secured credit cards should offer a reasonable rate, sufficient limit, and minimal set of fees. If you can find a no annual fee secured credit card with a good rate, you can save yourself a great deal of money and build credit at the same time.

About the Author
Tara Tiemann is the credit specialist for http://www.go-prepaid.com.  Which is a resource site for people who want to live debt free! If you are on a budget, using a secured credit cards and merchandise credit cards can save you big money!

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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