Bad Credit? - How A Secured Credit Card Could Help You
By Joe Kenny
Bad certainly can change the way you look at things, and the pinch of not being able to get the needed can make you more than a little frustrated. There may be, however, some help for you - in the form of a secured card. Here are some reasons why you may want to your secured card quickly.
Guaranteed Issue - Almost
Secured cards are not a great risk to the card company so they will issue them to just about anyone. The only thing that you need is to deposit the cash in a savings account to be able to cover the limits on the card. Some companies will require you to provide as much as 150% of the card limit, and others may ask for as little as 50%.
Building Credit
Using a secured card to build your can be very helpful. The key here, like any other card, is to make sure that you make the payments on time. You will want to see if the card company reports to at least one of the major bureaus. If they do not, then it cannot help your rating at all.
Fees Will Probably Be Applied
When you apply for your secured card, you will want to know exactly what fees are going to be applied to the account. Some people have reported fees so high that there was virtually no left on the card - even before they used it! There will also most likely be an annual fee, which could be a couple of hundred dollars, and a higher rate of interest.
The Main Thing To Remember
With this secured card you need to remember that its main purpose – in your case, is not to load it up with purchases as soon as possible. You are getting it in order to build your credit. This means you may only want to put a few small purchases on it and pay it off in full when the bill comes.
Some Things To Watch Out For
There are a number of secured card scams going on so you will most likely want to stick with the major card companies. Their fees will also be lower and you may even get most of your initial deposit back, possibly even with interest - as long as you pay your bills on time.
Another thing to watch out for is the requirement to call some 900 number in order to apply. From this type of call, you could be charged anywhere from a couple of dollars up to $50, and some of them even require you to make a second call - scam!
Be sure to compare secured card offers in order to find the best for your particular situation. Also, be sure to read the fine print before you apply. Some fees may apply just from the application process. By being wise, though, you can soon start to be on your way toward a solid financial standing, again.
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Source: http://www.articles-galore.com
Joe Kenny writes for CardGuide.co.uk, offering UK cards, visit them today tocompare cards.Visit today: www.cardguide.co.uk/
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