Getting Going: The Secured Credit Card
Some of us either have no credit or bad credit which can make it difficult to get a standard unsecured credit card. There is a way to still qualify for a credit card, regardless of which end of the spectrum you're on. The secured credit card is a way to establish starting credit or repair bad credit. Here are some facts behind the secured credit card that you should be informed about if you fall into either category: What It Is The secured credit card is basically a credit card that requires a deposit into the line of credit before you can use it. It is usually called a "collateral" deposit, it is established to ensure that you have the funds to use the credit card and to make the payments on it. Most credit card companies offering this option will require $300 to $500 before issuing the credit card to the customer. Who It's For If you have just finished a divorce, bankruptcy or lost a job, chances are your credit has been damaged a little. Life's bumps can definitely leave a mark. But a secured credit card can potentially rebuild your life by allowing you a second chance to get it right. But you do have to pay the price. Even if you have no credit, it is still necessary to start somewhere, and you may need to decide if a secured credit card is right for you. Be Cautious When you choose a secured credit card, you should be sure to find a reputable credit card company that doesn't have high interest or fees. Make sure that it is a well known company, as there have been many situations when people have been scammed in high rates, fees or even scammed out of their deposits. Your best bet when applying for a secured credit card is to go to your financial institution and see what they offer. If your bank doesn't offer this line of credit, consider going to another institution and see what they have. It can be tough to start, or start all over again. But, the best thing to do is to have a secured credit card, make a sensible deposit on it and once your credit is up to par, cancel it. It is merely a step in the right direction to recover good credit or build credit.
Latest News About Credit Cards:
Questionable purchases made on Knox Co. credit cards (WATE 6 Knoxville)
Knox County staff are prohibited from making "split purchases" and personal charges on county-issued credit cards, but that's what an audit uncovered recently. Police looking for three suspected of using stolen credit cards (The Nashua Telegraph)
LONDONDERRY -- Police hope someone can identify two men and a woman who are suspected of using several stolen credit cards around the region. ... How Credit Cards Affect Your Credit Rating (Investopedia)
"I tell you Doris , he was making $150,000 a year and had been working at the same place for a decade and they wouldn't approve his loan! They told him straight up that no credit history means no loan - all because he didn't have a credit card ." Woman Wanted In Theft Of Credit Cards, Checks (WHIO-TV 7 Dayton)
BUTLER TOWNSHIP, Ohio -- Police in Butler Township said they are looking for a person responsible in a local theft. Investigators said someone stole a car last month and a woman is using the victim’s credit cards and checks. Credit Cards Cut Off Gas Purchases (AP via Yahoo! Finance)
So you're at the gas station filling up your vehicle, and without warning the gas pump shuts off. What? The tank isn't full, and you know your credit card isn't over its limit.
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