Why You Should Have at Least One Secured Credit Card
By Kate Ross
Do you have bad credit but you need a credit card? Credit cards are not only useful tools to build your credit score up to its optimum level, but they also provide a convenient means to pay for things quickly and efficiently.
Whether you are paying bills online or shopping at the corner store, its so much handier to use a credit card than to carry around a wad of cash or to take time writing a check. Further, they are much safer than carrying cash, and provide a record of purchases for you. For those individuals with bad credit like yourself, the secured ones can best suit your needs.
Works Like Any Other Credit Card
A secured credit card looks just like any others that you might have ever seen or used - the only difference is that you make a deposit with the issuer in the amount that you wish to have credit extended to you. It will work like other cards - and will report monthly or quarterly to all three major credit reporting bureaus - Trans Union, Experian, and Equifax. It can bear the Visa, Mastercard, American Express, or Discover logo - depending upon which issuer you choose to use when you open your account.
Your Deposit Draws Interest
The deposit that you make with the issuer who grants you a secured credit card will draw interest, just like a savings account, in most instances. When you have established a proven track record of timely payments without exceeding your credit limit, the issuer will usually return your deposit, plus interest, and convert your account to a regular account in good standing.
You are in complete control of your finances when you have a secured credit card. You can control how much credit is extended to you by depositing more money whenever you want to give yourself a credit line increase. Some issuers will even match the deposit that you make (not all will do this- so shop around) in order to give you an even greater amount of purchasing power. You can pay off your balance by making the minimum monthly payment, or you can elect to send in payments that are above the minimum amount to pay your balance off sooner.
Nominal Fees
You will be charged a nominal fee for having a secured credit card. Keep in mind, however, that all credit cards charge some type of fee - and the luxury of having one is well worth the small amount you will pay. The interest that is charged on your secure card is usually very competitive with other, regular accounts.
You can find many great deals online. Online issuers often offer perks for customers - such as discounts, airline miles, and even free merchandise for account holders who maintain good payment standards.
Kate Ross has a Master in Finance and has been a university teacher as well as a financial consultant for years. She specializes in Unsecured Loans and also in helping people to get approved for Guaranteed Loans for Bad Credit, home loans, guaranteed loans, bad credit auto loans, guaranteed credit cards among many other financial products. For further information, please visit http://www.speedybadcreditloans.com
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