Credit/Debit Card Search

Secured Credit Cards and Their Benefits

Secured Credit Cards and Their Benefits

A secured credit card works by the customer topping up their account with a cash sum, and then the credit limit of that account is the amount that the customer has paid in. This is almost the opposite of a normal credit card, where the customer pays with their credit card for transaction, and then pays off the balance on the card after they have used the credit on the card.  With secured credit cards, the customer pays for the credit before they begin to make transactions.

By having a secured credit card, the balance on the card is already paid up front before you begin to make transactions.  Rather than having to worry about whether you will be able to afford the repayment each month, you have already paid off the money on the card, so this will not be an issue.  As you will effectively be making all of the payments before using the card, you will always meet your repayments for each month.  This means that you will be able to build your credit rating up quickly.  If you have had bad credit rating in the past, your credit score will be able to be improved upon substantially which will make you a trust worthier customer for other credit lenders.  With an improved credit rating, you can get loans and mortgages much more easily than you could do if you have a bad credit rating.

You should be careful of the fees imposed by the credit card company.  Usually they are not too bad, but if you look at many different secured credit card companies, you will be able to find the one with the lowest rates, which will mean that you get the most out of your money.

If you top up your secured card regularly, and are a good customer you may find that your secured credit card supplier offers you incentives to keep using your card.  These may be in the form of money back schemes, free gifts to be won when you buy using your credit card and even an increase of your credit limit to use as an overdraft of the payment that you have already made. 

If you are a credit card user who has bad credit rating and requires a credit card, then you will benefit from getting a secured credit card, as you can not only have a convenient way to make transactions, but you can also repair your credit report score.

Comments:
Name: *
E-mail: *
Location (City, Country):
Comment: *
* - Required Fields.
Save information
Notify me

Captcha:


RSS Related Credit articles

Credit Card Offers For People With Bad Credit

It is a fact that credit cards are one of the most vital tools in today's society. With it, you will be able to purchase the things you want even if you still do not have the cash for it. The way this works is that the Visa loan lenders will let you borrow the money for the acquisition. You will then repay it monthly with an interest if not paid fully. Just make sure that you repay it on time and also with the minimum payment needed every month in order to avoid unpaid credit card debt that may acquire lots of interest.

Some Tips for Getting a Fee-Free Credit Card

Credit cards are expensive enough without lumping an annual fee on top of them. If your current credit card carries a hefty annual fee, chances are good that you can find a similar card that does not have that extra financial burden. While many credit cards do come with steep annual fees, there are many free-free alternatives out there as well. The key to getting one of those free cards is to do your homework and research those free options.

Prepaid Credit Cards - Their Benefits for Travel

If you are travelling abroad or within your own country and need extra spending money, then you should consider getting a prepaid card.

All credit articles ?


Follow Us: Twitter

Useful Credit Cards Tips »

Dont let ancillary card fees creep up on you. Watch out for the increasing range of ancillary fees and penalties charged for using your credit card. It's not just the annual fee and interest charges you have to worry about these days but fees for late payment of your monthly statement, exceeding your credit limit, having a periodical payment refused, issuing secondary cards on the same account, replacing a lost card, duplicate statements, taking cash advances and making overseas ATM withdrawals. These all come at a cost ranging between $4 and $90.

Easy to get Credit Cards Online Applications | About Us | Contact Us | Privacy Policy | How Credit Cards Work - Credit Articles