Secured Credit Cards

Secured credit cards look exactly the same as unsecured credit cards – so there is no stigma attached to them. They work just like any Visa or MasterCard does – anywhere, any time. The only difference being that you must deposit a certain amount of cash before one is issued to you – that’s the secure part.

Apply for Secured Credit Cards Here


When you look for a secured credit card online, make sure you apply for one that has no application fees and no processing fees and make sure you understand and agree with the fees they will take. The fine print is long and boring but read it and make sure you understand what you are getting – it’s your money after all, it’s not like an unsecured credit card where you’re using their money!

What to look for in Secured Credit Cards

Most good secured credit cards companies will report your transactions to all the major credit bureaus every month, so you can have the satisfaction of knowing your credit score is getting better - but that’s only if you follow the terms of your agreement. If you deposit $2000 and spend $2001, there may be problems, so always be well aware of where you are with your secured credit cards.

Once you have established that you are a responsible person and you have kept to the terms of your agreement, your card may slowly turn into an unsecured card. The company may increase your line of credit, but again make sure they are not charging you exorbitant processing fees and interest rates for that unsecured part of your credit.

Some companies may charge up to 29.9%, which is totally unacceptable, it may be best to stick with your original secured amount, build your credit, and then apply to anotheunsecured credit card company after a certain length of time to get a better interest rate.

Unfortunately, with bad, limited or no credit history you won’t attract the lowest rates that the credit card companies offer. It always seems a little illogical to me that the people who actually need a low interest rate to get their credit history on track, get whacked with the highest interest rates, while the rich folks are offered 0% interest cards all the time!

Applying for Secured Credit Cards

Most major banks and credit unions offer secured credit cards or you can apply online. All your sensitive information is going into the forms you fill in, so ensure that the site is encrypted with 128-bit secure SSL encryption – they should state that somewhere on their site. Look at the URL at the top of the page and check it reads https – the “s” stands for secure. A closed padlock may also appear in your system tray, which is usually bottom right on a PC. That way your information will also be secure when you apply for secured credit cards.

 

Secured credit cards