Today we are going to discuss the best secured credit cards and why you may need them. There are many benefits to using this particular type of credit card and we will go over all of them in this article. For those of you that are unfamiliar with this type of currency, rest assured that by the end of reading this post you will have all the information that you need to make an educated decision as to whether or not secured credit cards are right for you.
These days it can be very difficult to make certain purchases, such as, airline tickets or even online purchases of any kind without the use of a credit card. In short, for you to be able to purchase certain items you will need to have a credit card. And to those who either have bad credit or no credit whatsoever, it’ll be hard if not impossible to obtain a regular credit card. This is when secured credit cards may become very useful to certain individuals.
In order for you to understand exactly what a secured credit card is, you should first learn exactly what the differences are between this particular type of currency: Secured and regular credit card. The first thing that you should know about credit cards is the simple fact that you are borrowing money each time you are using your card. For most people this is an excellent way to use their credit and make purchasing everyday items easier. The main difference between secured credit card and unsecured credit card is, when using the latter the money you are actually borrowing is secured by a collateral account. In order for you to use a secure credit card you will have to deposit a certain amount of money into an account, the sum is your credit limit. As you can clearly see they are looking very similar.
Now that you understand the main difference between regular credit cards unsecured credit cards you may be wondering exactly why anyone would use a credit card that is secured. While at first it may seem as if regular credit cards have many more advantages, there are still quite a few benefits that can be gained from the use of secured credit cards. Below you will find the top three reasons why many people choose to use these particular types of credit cards.
One type of person that uses secured credit cards is a younger individual who has not built up a solid credit history yet. Having no credit history can make it very difficult for you to obtain a line of credit of any kind. This is why it may be very useful for you to sign up for a secured credit card to help build your credit and credit score. By using this credit card wisely and paying your bills on time, you will help to greatly increase your credit history, therefore making it easier for you to get your hands on credit lines.
The second type of person that may choose to use a secured credit card is one with bad credit. Many people deal with this particular problem because of some poor choices that they made at one point in their life. Whether you spent more than you could afford as a young person or had trouble paying your bills as an adult, it may have very severely negatively affected your credit score and ratings. A very simple and effective way for you to turn your life around and help rebuild the credit that has been destroyed is through the use of a secured credit card much in the same way that a person with no credit history would. Learn Even more ppi claim.
The last group of individuals that may choose to use secured credit cards are those that want complete control over their spending. You see, while with regular credit cards you are spending borrowed money, when using a secure credit card you are actually spending the money you put aside in the collateral. This is a great way to make sure to control your spending and make purchases that are unnecessary or unneeded. Essentially, this particular group uses secured credit cards as a way to be able to make certain purchases without over spending.
Many of you reading this article may be very interested in getting your hands on secured credit cards for yourself but a bit unsure as to exactly how to go about doing this. This is the part of the article where we are going to go over exactly how to find the best secured credit cards for your personal situation. The best place to begin searching for information regarding secured credit cards would be the World Wide Web. After a bit of research you will come to realize that most banks offer these particular types of credit cards. Although this may make finding a secured credit card easier, or certain things that you may want to keep in mind before deciding on which one of these banks were companies is best deserving of your business.
One of the first things you will have to keep in mind when looking for the right secured credit card for you is whether or not the bank reports to the top three credit bureaus. You see, if you are using secured credit cards as a way to increase your overall credit score the timely payments that you make will help to influence this but only if the bank is actually reporting your good behavior to the credit bureaus. So, if you are using secured credit cards to help increase your credit score and or repair your damaged credit history, you will want to make sure that the bank you are using is going to help you do just that.
Something else that you may want to keep in mind when searching for this particular type of credit card is whether or not the bank that you are using charges any fees. It should be good enough that you are paying in advance for the use of this credit card that you should not have to pay any type of fee. There are essentially two types of fees that you should look out for, annual fees and transaction fees. An annual fee is a fee that is paid at the end of each year. While these are usually fairly low, there is no need for you to have to waste your money.
Another type of fee that is even more dangerous and costly are those that are charged for you each time you make a transaction. The transaction fees can be anywhere from $.25 to two dollars per transaction. Imagine how costly this can become for you if you purchased several things each and every day. Although secured credit cards are a great way for you to rebuild credit or keep close track of all the money that you spend, it is not worth it if you’re going to be wasting hundreds of dollars each year.
As you can clearly say, although many individuals may find that secured credit cards are not the best way to go, they certainly have several different benefits that can assist many people in certain types of situations. As long as you keep the advice that was written above in mind when you are searching for these types of credit cards, you should have no problem finding the best secured credit cards to fit your particular needs.