How To Find The Best Secured Credit Card For You

April 28, 2012

Best Secured Credit Card

Often times a secured credit card is confused with a prepaid credit card, which if you don’t know the difference then a secured credit card works like a credit card which you can make credit purchases with it, but if requires a deposit in order to obtain it, which the deposit is usually equal to or similiar to the your spending limit. A prepaid credit card on the other hand is basically like a debit card in which you deposit money and can make the same purchaes you can make with any other credit card.

best secured credit card

Both of which can raise your credit score with ontime payments but a secured credit card is known for offering better results when it comes to establishing a credit score and especially rebuilding a credit score, which credit card companies submit your history to 3 major credit bureaus each month, 3 great opportunities to raise your score each month.

How To Find The Best Secured Credit Card

The best secured credit cards even come with much more attractive interest rates and other fees compared to traditional credit cards. Shopping around is one of the best ways to find the best secured credit card for you but another great way is simply visiting your bank as they be more inclined to give you a good deal than doing business through a corporation who doesn’t know you, unlike your bank whom you are a customer out and build up a relationshiop with. But when looking for the best secured credit card you can consult our compiled list below can help you out when start your search, no matter who your are looking to obtain the card through.

  • Most importantly what kind of features does the card offer, and do they fit your spending habits. For example if you drive a lot then you want to fo for one that offers the best rewards for gas purchases.
  • Are you aloud to change your date of payment?
  • What are the yearly fees and interest rates? Sometimes companies offer lower interest rates but make it up in the amount they charge for yearly usage, or vise versa.
  • Can you switch over to a non secured account later on?

Now looking for the best secured credit card for you can offer you the chance to rebuild your credit score on a spending basis that best fits what you can afford to deposit, allowing you to not over spend and go into debt like you could with a traditional credit card that often come with higher lines of credit. Even if you do happen to miss a payment, it won’t hurt your credit score at all as the money you owe will just be deducted from the amount you deposited as a from of payment, still allowing you to get an ontime payment on your record. This entire process will allow you to build up your credit score which equates to you getting lower interest rates either through the company that provided you with the secured credit card as well as if and when you apply to different credit card companies.

Also in order to be eligible for a secured credit card all you need to have is proof that you earn an income as well as are at leat 18 years old. Lastly when you get the best secured credit card for you, remember that it’s sole purpose is really to raise your credit score, which you can do so by making small purchases and incurring small balances which will allow you to pay it off with ease each month so that you will have a perfect payment history on your record.

Category: Credit Card Consolidation

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