Whether you're just starting out in the human race of credit or hoping to reconstruct a damaged credit report, using secured credit cards can help. However, you'll need some cash to get started.
First, let's define what secured credit cards are. They are real number credit cards, generally Visa or MasterCard, that tin be used for anything Visa or MasterCards can be used for. The difference is that they necessitate the cardholder to lodge a certain amount of money into a checking or nest egg account to utilize as security against the card.
Secured credit cards also differ from debit entry entry cards in that secured credit cards are loans made against the money in your account, rather than simply having the money automatically deducted from your account, as is the lawsuit with debit cards. In that way, they can be a helpful tool toward either establishing or reestablishing your credit.
The interest rates on secured cards are generally higher than on standard cards, but not always. For instance, the website www.bankrate.com listings twenty-four secured credit cards, starting at 7.2% and going as high as 23.98%. Annual fees can change from zero to $69.00, according to the site, as well.
Normally, you'll need to lodge at least $300 into a checking or nest egg account, which will then determine your credit bounds on the card. (Each card will be different, so you'll desire to make some shopping for the card that best lawsuits your needs.)
Secured cards can allow you to get rebuilding your creditworthiness by charging responsibly and then repaying according to your agreement. They can be a relatively quick manner of either establishing or reestablishing your credit, and are deserving checking out in your program to derive control of your financial future.
Copyright © Jeanette J. Fisher