The reason is too obvious; a lot of people want to have their own credit cards so they can have something to rescue them when cash is not available. Also having a credit card and being able to maintain it would be a good way to gain lenders financing companies’ trust to grant you a loan. The thing though about having a credit card is the possibility of over spending thus, paying too much for interest charge.
But the question is, are you qualified for a credit card? If you have a good credit standing then you sure are what credit card companies are looking for. But what if you have a poor or have never had a credit before, would you still be qualified? Chances are very thin but could be possible. With secured credit cards, one will have the privilege of owning a credit card. Such cards are used to fix or build credit history. Before you apply for a secured card, there are several questions that you have to ask first. If after asking the questions and got the answer that satisfied you then go for it.
What is a secured credit card?
Secured credit card requires a customer to make a minimum deposit of at least three hundred dollars. This will serve as the bank’s security in case you were not able to make the pay or made a late payment. If you wanted to have a higher credit limit then you too should add to your deposit though there are some banks that offers higher limits for good payers.
Where can I apply for a secured credit card?
You have several options when it comes to this. You may visit a local bank and ask about their secured card offers or if you think that it is more convenient inquring online then you too may do so. Third option is credit unions. If you are one o it s members then you may ask whether you can avail one. If you get lucky, you’ll find companies with low rates and waived annual fees.
How much is the needed deposit?
The deposit requirement actually depends on the bank. There are some banks which only require three hundred dollars while some require five hundred dollars for minimum deposit.
Is there anything that one should be cautious about secured credit cards?
The answer is yes. Not all, but there are some banks that tend to take advantage of a customer’s frustration. There are some banks that would give you low interest rates but you need to buy one of the bank’s products like insurance before you can be issued a card and start using it.
How long would it take before I can transfer to an unsecured card?
There is no universal standard to this. It all depends on the bank or your paying history. If you are a good payer then the waiting time could be shorter but it often takes a year before you can apply for an unsecured card.
It will be your advantage if you fully understand how secured cards really work so keep asking until you are sure you’ve fully understood the card’s principles.