Secured Credit Cards Helps Rebuild Credit History

Secured credit cards afford people the opportunity to raise their credit history and score, rebuild credit, and be able to use a credit card when otherwise not allowed.  Very few people use cash these days, so these cards are important for shopping.  Plastic has taken the place of paper money in many stores.  Most places take these cards for easier processing of products or services that are purchased along with a higher convenience for customers.

Secured credit cards differs from regular credit cards.  Secured cards requires a person to manage a savings account and place a security deposit prior to beginning.  The deposit is the actual credit limit that gives security during the times when a person can not make a payment in full.  Depending on bank policy a person usually has to deposit half to the full amount of the total credit that is needed.

On the down side, there are fees linked with having secured cards.  Most have application fees, processing fees, and yearly fees as well. Certain banks are subject to charge more fees including monthly fees or those applied when increasing the credit limit.  Asking about the processing fees, especially if they are refundable if the application is denied, is important.  The answer will save a lot of hassle. Similar to other contracts, make sure to thoroughly understand all of the terms and conditions prior to signing on the dotted line.  The last thing that a person wants is to get charged fees that are a surprise.   The law states that a person must pay fees at regular times.  If payments are delayed,  it may negatively affect a person’s credit history.

There are many credit companies over the internet that say that they will give a person a quick and simple secured credit card with low fees and great incentives.  However, it is important to think wisely and begin a relationship with a reputable company that will provide good card services.  Some secured cards with high promises may end up to be a real nightmare and cause great headaches.  The first step is to do research and compare all offers and select the best deal.  Google is filled with reviews from multiple companies and a person can always consult with friends and family for trusted advice.  A person can save a great amount of time and energy when taking all of these things into consideration before making a final decision.  A person can learn from others’ mistakes.  One of the top banks that has a good secured credit card is the National City Bank.  In the recent past, the only thing that is needed is a deposit of $200 to open an account and the  card will be sent.  Orchard Card is a good alternative that only requires a bit larger of a deposit.  It does have certain fees that a person must ask about.

A secured credit card can help a person to establish and improve past credit history.  It can also give a better credit score and will be useful when trying to get other credit down the line. Do make sure you check your yearly free credit report to see what your credit history is like. Before a person signs a contract, they must read all the fine print and comprehend all of the charges and fees that are associated with it.  Research is necessary to uncover the best deals and will assure that there is no future regrets.