Warning: include(includes/header.php): failed to open stream: No such file or directory in /home/cca59/public_html/secured-credit-cards.php on line 16

Warning: include(includes/header.php): failed to open stream: No such file or directory in /home/cca59/public_html/secured-credit-cards.php on line 16

Warning: include(): Failed opening 'includes/header.php' for inclusion (include_path='.:/opt/php54/lib/php') in /home/cca59/public_html/secured-credit-cards.php on line 16

Secured Credit Cards

Many people are not sure exactly what a secured credit card is. A secured credit card can be very helpful in a number of situations. When a credit card is secured.. it simply means that the credit line is secured by a deposit into a savings account with the bank who is issuing the card. The amount you have on deposit will be the credit line of your secured credit card.

Secured Credit Cards
Earn Interest while Building or Re-Building Your Credit


The Convenience of a Secured Credit Card

For people who want to keep a handle on spending and not get in over their heads, a secured credit card can provide them with just what they need.

For those with bad credit, this will allow you to have a bank account which is earning interest. And, at the same time you will have the convenience of a credit card for your purchases.. and the convenience of being able to pay for those purchases over time as with a traditional credit card. Should you default on your obligation.. the bank takes the money from the savings account to repay the debt.

Most consumers holding secured credit cards would very likely not be able to qualify for a credit card at all if it were not for the fact the credit line is being secured by a savings account.

Secured credit cards are issued by government regulated financial institutions and will therefore report to all three credit bureaus. Because of this, a secured credit card can be helpful in getting the first newly active positive account on your credit report.. which may previously have shown a negative credit history or no credit history at all.

After a year or so of showing a responsible history of on-time payments, you may be able to qualify for an unsecured credit card. In this case your savings account will no longer be used to secure your credit card and you will be free to do as you wish with your savings.


Bookmark - Share - Enjoy: