What You Might Need To Know Before Getting A Secure Credit Card

Credit cards have many benefits however some people have bad credit, or have never even opened a bank account. Either way without reassurance of payment the bank will decline you. Credit cards can be an essential asset to your wallet and they become more and more needed. Certain hotels or car rental facilities will only do business with you if you have a credit card readily available.

Secured Credit Cards have been brought out as a solution. A secured credit card works in a very similar way to a secured loan in which you are required to risk your home for the lender to put trust in you repaying their money. With a secured credit card you give an item or amount of cash for the bank to look after whilst you use their card service, the limit made available to you will be based on the value of this item you have used. You should be accepted relatively fast and it all seems very well, but what else it is worth knowing before you jump into agreement.

Firstly, what kind of charges will you find on your card?

A secured card is very much similar to a regular card once the setup has been completed however even if this period you may have been charged an application fee by your vendor. Much like a regular card you pay a monthly fee and some interest on purchases/ cash withdrawals you make. Another extra standard fee you should be aware of is an annual fee which may be applied, so make sure you read this section of your vendor’s conditions.

Do all banks and financial services offer secured cards?

The answer to this sadly, is no. Some banks will only offer unsecured credit cards so your research will have to go further into finding a vendor. However there are plenty of sources available online to help you find the right secured card for you.

Are there any extras to look out for when applying?

Of course, like with anything different companies vclub will offer different things for different people. Some companies will be offering a genuine solution to help you whilst making a small amount of profit on the side, others will try to drain you for as much as they can get. Certain secured card services will make you pay insurance at a horrible extra monthly fee, compared to others who will happy just take the annual fee along with interest earned by you asset.

Do credit bureaus here of your credit rating?

One of the main reasons for getting a secured credit card may be to build up your credit rating from past damages, however if the company you are using isn’t notifying the bureau of your on time payments and good credit with them personally your rating won’t increase. This means you’re losing a major benefit and the main reason you applied.

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