10 Amazing Tips For Credit Cards Secured

Introduction

If you have poor or no credit history at all, you should consider secured credit cards. These types of cards have less credit, and this gives you a great opportunity to build your scores. With so many companies offering secured credit cards, picking the right one for you can be a daunting task. However, these 10 amazing tips are bound to make the process much easier.

Step 1

1. Before you purchase secured credit cards, you need to understand how they work. In order to get a secured card, you must have a savings account which will act as security. Normally, your credit limit with be the same amount as your deposit, which is 100 percent of the total savings. The credit card holder cannot use the money in the account unless they are delinquent by 30 to 60 days. Once you make timely payments for over a year, the credit card company may be inclined to issue you with an unsecured card.

Step 2

2. It is important to check if your secured credit cards provider will issue reports to the credit bureau. There are three major credit bureau agencies which collect information from lenders, mortgage companies, and banks. They are mainly concerned with debt and credit payment history. Getting secured credit cards will be pointless if your provider does not report to the credit bureau.

Step 3

3. It is wise to shop for secured credit cards before settling for one. Generally, secured credit cards come with higher interest rates. However, you will get a favorable rate if you take the time to compare rates from various lenders. Also, check on the grace period; this refers to the period of time it takes before you can negotiate for a better rate with the credit company.

Step 4

4. Stay away from secured credit cards providers who ask for very huge upfront fees. They are most likely to scam and take advantage of your poor credit situation.

Step 5

5. The best types of secured credit cards are those that have an interest bearing provision. The interest you accrue is yours and this is a better deal.

Step 6

6. When you obtain your card, use it wisely; try and spend under 30 percent of your credit limit. This way, you will repair your scores faster and gain the confidence of lenders.

Step 7

7. Take time to read the documents carefully and ensure that you understand all clauses before signing. Enquire on how much you will be charged in case of late payments and if there is an annual charge.

Step 8

8. Take time to read reviews from customers who have used secured credit cards before. This will help you make a more informed decision.

Step 9

9. Only enlist the services of trusted secured credit cards providers. There are many fraudsters out there, and take care not to be the next identity theft victim.

Step 10

10. Keep monitoring your credit rating by requesting for credit reports and ensure that there are no errors or omissions.

Tips

These ten tips will help make an intelligent choice on secured credit cards.

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