| A credit card is one of those ubiquitous inventions of | | | | Compared to unsecured cards, secured credit cards |
| the modern age that refuses to quit. In fact, it has | | | | require annual fees and come with higher rates. If |
| made itself so necessary in our lives that we need | | | | you're shopping around for a secured card, make |
| one to rent a car, book a hotel room or just to buy | | | | sure to get one that has no application fee. You will |
| a comicbook online. More than that, credit cards are | | | | have to pay an annual fee so choose a secured card |
| one of the ways creditors take a peek at our credit | | | | that does not ask for a prohibitively high charge. |
| history with and they can actually make or break our | | | | Watch out for secured credit card agreements that |
| chances for a good loan, an apartment or a job. So | | | | hide fees or ridiculous add-ons that you don't really |
| what do we do if we've torn our credit to pieces? | | | | need. An example is one where a credit card |
| We turn to secured credit cards. | | | | company will approve your secured card application |
| Secured credit cards are a great substitute for | | | | provided you sign up for a monthly insurance policy |
| regular credit cards. Whether you have poor credit | | | | that costs $50. |
| badly needing repair, can't get a credit card or are | | | | Where can I apply for a secured credit card? |
| new to the credit scene, a secured credit card can | | | | Not all banks offer secured credit cards but you can |
| help you re-build or establish your credit. | | | | still check out your local banking institutions if it's still |
| How does it work? | | | | part of their product line. You can also check with |
| A secured credit card is a cross between a credit | | | | your credit unions since many of them offer these |
| card and a debit card. It requires collateral in the form | | | | cards to members only. |
| of cash deposited in an account. That amount then | | | | Using secured credit cards to build credit |
| functions as your credit line. So if you deposited $700 | | | | While most banks target clients who have never had |
| in your account, you can use your secured credit | | | | credit before as the main users for secured credit |
| card to purchase items up to $700, nothing more. | | | | cards, many consumers use secured credit cards to |
| The catch is, you have to pay it back. | | | | help re-establish their credit. To do this, consumers |
| Some banks offer to give you more credit as a | | | | need only to use their secured cards and ensure that |
| reward for being a good client (i.e., you pay your bills | | | | the bill gets paid each month. By establishing their |
| on time) or maybe allow you to charge up to a | | | | reliability, the consumer establishes positive credit. |
| certain percentage more than your deposit amount. | | | | The future of secured credit cards |
| You only need to pay a small interest rate to cover | | | | Secured credit cards are still the choice of many card |
| for that type of usage. | | | | holders, but many are giving up their secured cards in |
| What's the minimum deposit amount? | | | | exchange for unsecured cards. Unsecured cards don't |
| Depending on the type of card you chose or on the | | | | require cash collateral, which accounts in part for their |
| banking institution, most secured credit cards will | | | | attractiveness. A secured credit card is still a great |
| require a deposit starting at $300. There is no limit to | | | | choice, especially for people who are still building |
| how much you want to add later on. | | | | credit or for those who are trying to rebuild theirs. |
| What to look for in a secured credit card | | | | |