SECURED CREDIT CARDS INFORMATION

Please see information below on Credit Cards.

        

Secured Credit Cards

What are secured credit cards?

Secured credit cards are a great financial product for those people who find it hard to get approval for a standard credit card because they have little or poor credit. Secured Credit Cards are similar to standard credit cards, however, the difference if you are required to provide a security of funds or deposit to your account before you can access your line of credit. You monthly repayment information will be reported to the three major credit bureaus, so if you make successful repayments on time every month you will help to rebuild your credit history.

How do secured credit cards work?

As soon as you receive approval on a secured credit card all you need to get spending is a security deposit which you can pay all at once or over time. This payment can be made online or over the phone and is required to open your account so you are able to access your line of credit. This security deposit is refundable, sometimes as quick as when you close your account and pay off your account balance in full. Your card status will then be reported to the three major credit bureaus so you are able to successfully rebuild your credit history over time.

What are the fees associated with secured credit cards?

Always check the fees that are associated with secured credit cards as these can vary considerably between providers. You should also be aware of high interest rates which can apply to these types of credit cards. Check the terms and conditions carefully before you sign up and make your commitment.

What are the benefits of a secured credit card?

Secured credit cards are suitable for people who struggle to obtain approval on standard credit cards due to a poor credit history. Due to the reporting information that the secured credit card provider will report to the three major credit bureaus, a secured credit card is perfect for you to help rebuild your credit. Obviously this only applies if you make successful repayments, this is something that you should be fully aware of and take very seriously.

With a secured credit card you will receive all the benefits of a standard credit card plus this unique chance to rebuild your credit score. You should take advantage of the ability to shop online safely, receive worldwide acceptance on payments, take part in reward schemes and over time receive the ability to have access to more credit.

Are there any disadvantages to secured credit cards?

It is important to remember that you are required to provide collateral before you are able to access your credit so you will need this before you apply for a secured credit card. You are not able to make withdrawals or use your secured credit cards until you have money in your account. As a result of this, your spending power is limited because you must have the money in your account in advance before you make a purchase. There are also fees and high interest rates which you should be made aware of before you commit yourself to a secured credit card.

        


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