Secured Credit Cards

 A secured credit card works just like a regular credit card, cardholders can use the card anywhere the card is accepted. But you need to put down the deposit against the card’s credit limit used as collateral on the account which will be used when the cardholder default. Usually these cards are used by people with limited credit histories. In reasonable use, secured credit cards can help cardholders to build credit or repair credit.                

Apply and qualify easily

People with bad credit or no credit can get benefits from secured credit cards. Even people with very good credit but have trouble getting approved for regular credit cards can benefit from secured credit cards.

Build credit

If you can use your card responsibly, your credit score may increase. Therefore, you can have a better chance to get approved for a regular credit card after a few months.

Earn rewards

Although secured credit cards are not like traditional credit cards, they are still credit cards. Many secured credit cards offer rewards programs, so cardholders can earn rewards points by making purchases.

Check score

You can get approved with a bad or limited credit history. A few secured credit cards don’t require any credit check, if you can pay down the minimum required security deposit. There are also some traditional secured credit cards, the issuer will review your personal credit history when determining whether to approve your credit card and what terms you are eligible for. Responsible past use of credit will maximize your chances.

Application

You can apply for a secured credit card online, in banks or by email depending on the card. And you just need to fill in your personal information and submit your application. The credit card issuer will consider your credit reports and several different factors when reviewing your application to get an idea of your creditworthiness.                

Read your credit card terms and conditions.

You need to have an understanding of the terms of your credit card in order to use it better and avoid paying extra fees.

Pay your bill in full on time

Because secured credit cards don’t require you to have a very good credit score, they often have more fees than unsecured credit cards. In general, you have to pay an annual fee and an application fee. Some terrible secured credit cards charge cardholders high- interest rates, monthly account fees, and even credit limit increase fees which will be charged when you request to have your credit limit increased.

What’s more, any late payments will be reported to the credit bureau, which may you’re your credit score. If your payment is delayed for several months and your credit card is owed, your account will be closed and you will lose your deposit. Therefore, we recommend you to pay the bill in full on time in order to avoid extra fees.

Convert to unsecured credit card

Some secured credit cards will review your account after a period of time, and upgrade your credit card to unsecured card if you qualify. If your secured credit card issuer doesn’t upgrade your credit card to an unsecured credit card, you can apply for an unsecured credit card with other card issuers.