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Outline Of A Secured Credit Card

Nick Makaryk
Jul 12, 2008
One very appealing idea when it comes to credit cards is the secured card. These cards, as suggested by the name are guaranteed to be paid, mainly by the credit card company. Because they necessitate that you put money into an account with their company, this account is a guarantee that the payments will be made. Usually between half to all of the credit will be secured with this account. For that reason, this is not really a credit card since you are not receiving credit. These are often called debit cards because they are secured by your money.

What makes secured credit cards such a big deal?

You may be aware of the problems associated with credit card debt. This is often caused by using them with no regard to paying. This is one way people get their credit into such a mess that they can never get an unsecured credit card (these are true credit cards used by many). Paying what they owe and having no bill collectors may not be enough. The rating from having the debt stays with them. That is where the secured credit card can be an immense help to them. Through responsible use of the secured credit card (paying the payments on time, no overspending, and only using up to 70% of the limit), their rating can improve. This will take time but if it is adhered to, it will happen. Therefore, the problems created with the unsecured card can be cleaned up by using a secured credit card.

This is not the only scenario for using a secured credit card. Sometimes people would rather use the secured card because they do not want to pay the interest rate or other fees associated with credit cards. Even filling out an unsecured credit card application is not what they desire.

Some people are against borrowing money period. It does not matter if it is a credit card or any other form of borrowing. This only takes in a very small percentage of people but they do exist.

Sometimes people hear horror stories about getting caught up in credit card debt and would rather not chance it happening to them, so they apply for the secured card. It may have been someone they knew or one of their family members that ended up ruined by credit card spending which landed them in debt. They do not want this to happen to them so they opt for a secured card rather than a regular credit card.

No matter the reason, the option of a secured credit card has a large following.
About the Author
Nick Makaryk is an Internet Publisher, Copywriter, and Founder of Best Credit Cards A Free consumer Credit Card Comparison site helps consumer minded individuals find the perfect credit card while avoiding high interest rates, charges, and no fees. Compare all Low Interest Credit Cards from accredited card issuers Visa, Master Cards, Discover, American Express.
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