Bad credit can change the way you look at things, and not being able to get the credit you need can make you more than a little frustrated. A secured credit card, on the other hand, might be able to help. Here are some reasons why you might want to get your secured credit card quickly.
Almost Every Issue Is Guaranteed
Secured credit cards don't pose much of a risk to the credit card company, so almost anyone can get one. To be able to cover the card's limits, all you need to do is put the cash in a savings account. Some companies will ask for as much as 150 percent of the card's limit, while others may only want 50 percent.
Getting good credit
Getting a secured credit card can be a great way to build up your credit score. Like with any other credit card, the most important thing is to pay on time. You should check to see if the credit card company reports to at least one of the major credit bureaus. If they don't, it won't do anything to help your credit score.
Fees will likely be charged.
When you apply for a secured credit card, you will want to know exactly what fees will be added to the account. Some people have said that the fees were so high that, even before they used the card, there was almost no money left on it. Most likely, there will also be an annual fee, which could be a couple hundred dollars, and the interest rate will be higher.
The Most Important Thing
When you use this secured credit card, you need to keep in mind that its main purpose is not for you to buy things as quickly as possible. You want it so you can build up your credit. This means you might want to only use it for a few small purchases and pay it off in full when you get the bill.
Things to keep an eye out for
There are a lot of scams involving secured credit cards, so you should probably stick with the big credit card companies. Their fees will also be lower, and if you pay your bills on time, you may even get most of your initial deposit back, with or without interest.
Another thing to be careful of is if you have to call a 900 number to apply. You could be charged anywhere from a few dollars to $50 for this type of call, and some of them even require you to make a second call - scam!
Make sure to compare secured credit card offers to find the one that works best for you. Also, before you apply, make sure to read the fine print. There may be some fees right from the start of the application process. But if you're smart, you can get back on track quickly and get your finances back on track.
