Is A Secure Credit A Good Choice For Me?
A secured credit card is a pre paid card issued by a bank that aids those with a
low credit score or with past repayment issues to rebuild their credit. While providing a valuable and neededd asset in the form of monetary access, there are nevertheless several issues to watch out for when applying for or activating a secure credit card.
An example of these issues is that of credit card companies or banks that will try to take advantage of a susceptible buyer and impose stiff fees. These fees can include application fees, for the initial setup of your card, or fees that will be pushed onto your card usage along the way.
A credit card is actually a necessity and not an extravagence these days. Most often, a card will be benficial for a person, as it can provide a series of benefits over time to your credit score and loan history. Paying your credit card bills in a timely manner will improve. Ypour repayment history is a factor which weighs heavily on your credit score.
Many consumers feel more comfortable knowing that they have a credit card for emergencies or as a way to handle unexpected bills. Having a credit card on hand, even if one chooses not to use it, can be a good way to get you out of unexpected situations. In the case of an unforeseen emergency, a credit card can help you pay for any immediate charges that you may incur.
Another advantage of a credit card is that a consumer repays the card back as they would a loan. However it's important to note that a credit card's APR is subject to chage where a lon is generally a fixed rate.
In another example, a credit card can differ from a loan in that it provides you additional benefits based on the company you received the credit card from. Many banks now offer a rewards program for using their credit card. These rewards varry based upon the company, but popular rewards include cash-back reimbursements or offers such as paying for your gas or travel.
When applying for a secure credit card, your first stop should be a bank that you have a savings account with. Many brick and mortar banks will give out a secure credit card to their customers regardless of their bad repayment rate or having a low credit score. These reasons alone make acquiring a secure credit card very easy and hassle free.
In order to obtain a secure credit card from a bank, the customer can either use a savings account as colatteral or security deposit can be required. The amount of either would dictate the amount of credit available on the new card. The finance rate is also based on the balance of the secured savings account or security deposit.
A frequently recommended card is the Millennium Bank Card. The Millennium Bank Card a credit limit up to $10,000 and has an attractive finance rate. This particular card is well suited to rebuilding a damaged credit history or establishing a new one.
Some of the questions posed by first time customers can and should include things along the topic line of whether or not the credit card issuer can report to all three bureau companies, which are Equifax, Experian, and TransUnion. These are the major three credit reporting agencies and are very important to those who wish to use their card wherever they want to.
Another important question is what service charges the bank charges for this card. Some of the charges can include an application fee and often there is an annual fee for having the card. Penalities can also be assessed if the bank feels you are spending too much or too little with your card.
In order to better understand how a secure credit card works, research the various cards offered online and read customer reviews when available.
Secure Credit Cards can provide substantial benefits to those in need of money and will allow an individual to improve their credit score over time.
by: Louis Fabiano
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