Home » Finance

Things to Know About a Secured Card

Jul 25, 2008
Secured credit cards are those credit cards, wherein you have to deposit cash as security to obtain them. This security or collateral further becomes a line of credit in your account. For instance, if you deposit $500 in your bank account, your credit limit becomes $500. This means, whatever sum you deposit in your account, it happens to be your credit limit. By depositing hefty sum in the bank account and making monthly installments on time, you can increase the chances of getting more and more credit or reward from the bank.

You get hordes of benefits from a secured credit card, such as it gives enough finances, even if you have poor or bad credit to improve your credit rating. You can enjoy the full-fledged benefits of these cards by making regular monthly payments. In addition, you need to choose a right secured credit card company, which reports your credit status to credit reporting agencies.

Things to Know:

Secured credit cards certainly improve your credit rating by sending the credit reports to all the credit agencies, thereby helping you in rigging up your credit status. If you make all your payments promptly, the credit card companies eventually will convert these credit cards into unsecured credit cards, so that you can start reaping maximum benefits from these cards.

When you decide to apply for these cards, you have to pay some kind of general fees like in other standard credit cards such as annual fees, application fees and processing fees. However, consider the company for which you are going to apply, since these fees vary from one credit card firm to another. Never apply for such a credit card from those companies which demand additional fees, since there are some reliable companies in the market that charge only minimum amount of fee for credit card approval.

To apply for such a credit card, you have to give some basic details and documents such as, SSN (social security number), residential proof, income proof, age proof and so on. A few firms, which offer such these services, ask you to open a bank account. Some credit card firms never charge Annual Percentage Rate (APR) on the amount that you deposit. Hence, you may deposit the amount directly in your account.

Usually, credit card companies charge a penalty fee for late payments and hike the interest rate, if you fail to pay the monthly payments. Firms offering these credit cards withhold the credit sum from your actual deposits.

Overview:

With these types of credit cards, people can even improve their credit scores. It takes a bit of time, but your credit status begins to rise inch by inch, when you make your monthly installments duly.

Understand, it does not take a single minute to damage your credit score, but to rebuild it takes more than an imaginable time. Finally, yet importantly, never use secured credit cards for ordinary purposes. Keep a decent sum in the account and pay all the bills promptly so that you can avoid debt.
About the Author
Find secured credit cards and more of Tom's work at FINDsecuredcards.
Rating:
Please Rate:
(Average: Not rated)
Views: 110
Print Email Report Share
Article Categories
    • Artists
    • Gambling
    • Humanities
    • Humor
    • Movies
    • Music
    • Photography
    • Tattoos
    • Television
    • Classic Cars
    • Motorcycles
    • Recreational Vehicles
    • SUVs
    • Trucks
    • Vans
    • Branding
    • Business Opportunities
    • Careers and Jobs
    • Corporate
    • Customer Service
    • Direct Mail
    • Entrepreneurship
    • Ethics
    • Financing
    • Franchising
    • Home-Based Business
    • Human Resources
    • Import and Export
    • Leadership
    • Management
    • Market Research
    • Marketing and Advertising
    • Negotiation
    • Network Marketing
    • Networking
    • Organizational
    • Presentation
    • Project Management
    • Public Relations
    • Small Business
    • Strategic Planning
    • Team Building
    • Telemarketing
    • Training
    • Data Recovery
    • Databases
    • Games
    • Hardware
    • Networks
    • Operating Systems
    • Programming
    • Security
    • Software
    • Spyware and Viruses
    • Ask an Expert
    • College and University
    • Home Schooling
    • K-12
    • Languages
    • Online Education
    • Psychology
    • Coffee
    • Cooking
    • Gourmet
    • Recipes
    • Wine and Spirits
    • Acne
    • Aerobics
    • Alternative Medicine
    • Beauty
    • Cancer
    • Cosmetics
    • Depression
    • Diabetes
    • Diseases and Conditions
    • Fitness Equipment
    • Fitness
    • Hair Loss
    • Heart Disease
    • Medicine
    • Men's Health
    • Muscle Building
    • Nutrition
    • Skin Care
    • Supplements and Vitamins
    • Weight Loss
    • Women's Health
    • Yoga
    • Arts and Crafts
    • Babies
    • Collecting
    • Elderly Care
    • Genealogy
    • Hobbies
    • Parenting
    • Pets
    • Pregnancy
    • Woodworking
    • Feng Shui
    • Gardening
    • Home Appliances
    • Home Security
    • Interior Design
    • Landscaping
    • Affiliate Programs
    • Article Marketing
    • Auctions
    • Audio
    • Banner Advertising
    • Blogging
    • Broadband
    • Domain Names
    • E-Books
    • E-Commerce
    • Email Marketing
    • Ezines and Newsletters
    • Forums
    • Internet Marketing
    • Link Popularity
    • Pay-Per-Click
    • Podcasting
    • RSS
    • Search Engine Marketing
    • Search Engine Optimization
    • Security
    • Social Media
    • Spam
    • Video
    • Viral Marketing
    • Web Design
    • Web Development
    • Web Hosting
    • Copyright
    • Cyber Law
    • Intellectual Property
    • National, State, Local
    • Patents
    • Regulatory Compliance
    • Trademarks
    • Buying
    • Selling
    • Baseball
    • Basketball
    • Boating
    • Cycling
    • Extreme Sports
    • Fishing
    • Football
    • Golf
    • Hockey
    • Hunting
    • Martial Arts
    • Running
    • Scuba Diving
    • Soccer
    • Swimming
    • Tennis
    • Dating
    • Divorce
    • Marriage
    • Weddings
    • Astrology
    • Buddhism
    • Christianity
    • Faith
    • Hinduism
    • Islam
    • Judaism
    • Meditation
    • Metaphysical
    • New Age
    • Cable and Satellite TV
    • Cell Phones
    • Communication
    • Gadgets and Gizmos
    • GPS
    • Satellite Radio
    • Video Conferencing
    • VoIP
    • Addictions
    • Coaching
    • Goal Setting
    • Motivational
    • Stress Management
    • Time Management
    • Clothing
    • Electronics
    • Fashion
    • Gifts
    • Jewelry
    • Causes and Organizations
    • Environment
    • History
    • Holidays
    • Men's Issues
    • Nature
    • Philosophy
    • Politics
    • Women's Issues
    • World Affairs
    • Air Travel
    • Camping
    • Cruises
    • Destinations
    • Outdoors
    • Article Writing
    • Book Reviews
    • Copywriting
    • Fiction
    • Non-Fiction
    • Poetry
    • Quotes
    • Screenplay
    • Tools and Resources