Credit cards are extremely convenient, to the point that a lot of people have at least one. However, there are some people, whose credit history is not so good, and the only way for them to become a credit card owner again is to apply for the secured credit card. Here is what you need to know about it.
What is Secured Credit Card?
It is a credit card which requires you to put a deposit in order to be able to get the credit. The more you put, the more you can charge. Sometimes, banks can also reward you for on-time payment. The effectify creditcards can give you more information about the purpose of such cards.
Where can One Get This Credit Card?
You can find the list of secured credit card issuers and choose one of them. There are credit unions, which offer such credit cards to their members with lower interest rates.
What Can I Do?
It is an excellent card to pay for your purchases with.
How Much Money Should I Deposit?
It depends on the credit card. However, the minimum deposit for the majority of them is either $300 or $500. What is more, your credit limit will be equal to this sum.
Can I Apply for Secured Credit Card in All Banks?
Not all banks offer an opportunity to get a secured credit card. Most of them are more interested in credit cards with small credit limits and high interest rates. What is more, some banks choose to give secured credit cards only to those people, who have not had any examples of bad credit history before.
When I can Get Unsecured Credit Card?
Usually, you need a year of on-time payments to qualify for the unsecured credit card. Card issuers are interested in you as a customer so the rejection rate is quite low.
Can My Deposit Earn in Interests?
The majority of card issuers do not offer such option to their customers, but there are some that do. Thus, you can get some rewards for your deposited money.
How can I Build Good Credit Rating with Secured Credit Card?
It is easy. You need to buy a thing or two and always pay on time. What is more, make sure that you spend as much money as you can afford, and not a cent more.
We hope you have learned everything you wanted but always forgot to ask about the Secured Credit Cards. Take care!