Be Careful About Secured Credit Cards
A secured credit card is often the first step to establishing or re-establishing credit. Many advisors will recommend starting out with a secured card and then moving on to a unsecured card. In general, it is a good way to build a credit history. Most lenders like to see some sort of revolving credit on your report.
A secured credit card allows you to open and maintain a savings account that works as the security for your line of credit. You can't spend any more than you have in your savings. Some banks will even limit you to half of your savings as your credit card limit. The deposit can range from a few hundred dollars to thousands.
Some secured cards come with application and processing fees. Many will have annual fees. Make sure that you know what the fees are before you apply for any credit card, secured or unsecured.
In general, secured credit cards carry an annual fee and a higher interest rate than unsecured cards. That is why they are often a good first step for someone unable to get credit. The idea is that you aren't going to charge any more than you can pay in full. If you don't carry a balance, the interest rate won't affect you.
The credit card isn't to charge things you can't afford right now. It is to establish your credit in a positive manner. And you won't do that by charging up huge amounts and carrying a balance.
With that in mind, there are some things you should avoid. You've seen the adds that say nobody is denied credit. No matter how bad your credit is, you will be approved. But you will pay too much for that. Especially those adds that say there is no credit check necessary.
That is simply ridiculous. What is really going on is a scam. You start by calling a 900 number that charges you by the minute. You may get a list of banks that offer secured cards. You may get another 900 number to call. But chances are you won't get a cerdit card.
Avoid 900 calls. If there is no income requirement or credit check, it isn't for real. Watch out for really high interest rates and annual fees. Almost all reputable lenders will be charging the same rates and fees. Shop around.
No one can quarantee you credit. No card can be issued without a credit check. Legitimate lenders will never charge you for a phone call -- they all have local or 800 numbers.
Sometimes, you are just better off going into your local bank and dealing with someone that you know is reputable. There are benefits to forming a relationship with a bank. If you are a good customer for many years, you may find that you have an easier time with financing later on
A secured credit card allows you to open and maintain a savings account that works as the security for your line of credit. You can't spend any more than you have in your savings. Some banks will even limit you to half of your savings as your credit card limit. The deposit can range from a few hundred dollars to thousands.
Some secured cards come with application and processing fees. Many will have annual fees. Make sure that you know what the fees are before you apply for any credit card, secured or unsecured.
In general, secured credit cards carry an annual fee and a higher interest rate than unsecured cards. That is why they are often a good first step for someone unable to get credit. The idea is that you aren't going to charge any more than you can pay in full. If you don't carry a balance, the interest rate won't affect you.
The credit card isn't to charge things you can't afford right now. It is to establish your credit in a positive manner. And you won't do that by charging up huge amounts and carrying a balance.
With that in mind, there are some things you should avoid. You've seen the adds that say nobody is denied credit. No matter how bad your credit is, you will be approved. But you will pay too much for that. Especially those adds that say there is no credit check necessary.
That is simply ridiculous. What is really going on is a scam. You start by calling a 900 number that charges you by the minute. You may get a list of banks that offer secured cards. You may get another 900 number to call. But chances are you won't get a cerdit card.
Avoid 900 calls. If there is no income requirement or credit check, it isn't for real. Watch out for really high interest rates and annual fees. Almost all reputable lenders will be charging the same rates and fees. Shop around.
No one can quarantee you credit. No card can be issued without a credit check. Legitimate lenders will never charge you for a phone call -- they all have local or 800 numbers.
Sometimes, you are just better off going into your local bank and dealing with someone that you know is reputable. There are benefits to forming a relationship with a bank. If you are a good customer for many years, you may find that you have an easier time with financing later on
A secured credit card is often the first step to establishing or re-establishing credit. Many advisors will recommend starting out with a secured card and then moving on to a unsecured card. In general, it is a good way to build a credit history. Most lenders like to see some sort of revolving credit on your report.
A secured credit card allows you to open and maintain a savings account that works as the security for your line of credit. You can't spend any more than you have in your savings. Some banks will even limit you to half of your savings as your credit card limit. The deposit can range from a few hundred dollars to thousands.
Some secured cards come with application and processing fees. Many will have annual fees. Make sure that you know what the fees are before you apply for any credit card, secured or unsecured.
In general, secured credit cards carry an annual fee and a higher interest rate than unsecured cards. That is why they are often a good first step for someone unable to get credit. The idea is that you aren't going to charge any more than you can pay in full. If you don't carry a balance, the interest rate won't affect you.
The credit card isn't to charge things you can't afford right now. It is to establish your credit in a positive manner. And you won't do that by charging up huge amounts and carrying a balance.
With that in mind, there are some things you should avoid. You've seen the adds that say nobody is denied credit. No matter how bad your credit is, you will be approved. But you will pay too much for that. Especially those adds that say there is no credit check necessary.
That is simply ridiculous. What is really going on is a scam. You start by calling a 900 number that charges you by the minute. You may get a list of banks that offer secured cards. You may get another 900 number to call. But chances are you won't get a cerdit card.
Avoid 900 calls. If there is no income requirement or credit check, it isn't for real. Watch out for really high interest rates and annual fees. Almost all reputable lenders will be charging the same rates and fees. Shop around.
No one can quarantee you credit. No card can be issued without a credit check. Legitimate lenders will never charge you for a phone call -- they all have local or 800 numbers.
Sometimes, you are just better off going into your local bank and dealing with someone that you know is reputable. There are benefits to forming a relationship with a bank. If you are a good customer for many years, you may find that you have an easier time with financing later on
A secured credit card allows you to open and maintain a savings account that works as the security for your line of credit. You can't spend any more than you have in your savings. Some banks will even limit you to half of your savings as your credit card limit. The deposit can range from a few hundred dollars to thousands.
Some secured cards come with application and processing fees. Many will have annual fees. Make sure that you know what the fees are before you apply for any credit card, secured or unsecured.
In general, secured credit cards carry an annual fee and a higher interest rate than unsecured cards. That is why they are often a good first step for someone unable to get credit. The idea is that you aren't going to charge any more than you can pay in full. If you don't carry a balance, the interest rate won't affect you.
The credit card isn't to charge things you can't afford right now. It is to establish your credit in a positive manner. And you won't do that by charging up huge amounts and carrying a balance.
With that in mind, there are some things you should avoid. You've seen the adds that say nobody is denied credit. No matter how bad your credit is, you will be approved. But you will pay too much for that. Especially those adds that say there is no credit check necessary.
That is simply ridiculous. What is really going on is a scam. You start by calling a 900 number that charges you by the minute. You may get a list of banks that offer secured cards. You may get another 900 number to call. But chances are you won't get a cerdit card.
Avoid 900 calls. If there is no income requirement or credit check, it isn't for real. Watch out for really high interest rates and annual fees. Almost all reputable lenders will be charging the same rates and fees. Shop around.
No one can quarantee you credit. No card can be issued without a credit check. Legitimate lenders will never charge you for a phone call -- they all have local or 800 numbers.
Sometimes, you are just better off going into your local bank and dealing with someone that you know is reputable. There are benefits to forming a relationship with a bank. If you are a good customer for many years, you may find that you have an easier time with financing later on
posted by zzzzzzzzzzz at
10:11 PM
0 Comments:
Post a Comment
Subscribe to Post Comments [Atom]
<< Home