July 14, 2013
What is a secured credit card? Who would consider getting one? Why?
What is a secured credit card? Who would consider getting one? Why?
A secured credit card requires a cash collateral deposit that becomes the credit line for that account. People who have never had credit or need to repair a poor credit history would consider getting a secured credit card. They may not qualify for a regular credit card, so for them, a secured credit card may be the only way to establish (or re-establish) credit.
It stated the case for a secured credit card very well, Katherine. The secured credit card can be a very effective way to build your credit or to reestablish it, just like Katherine stated. ONLY do this when there are no fees (credit unions are a good option) and you pay that bill off each and every month. This means you will need to be organized. If you cannot look yourself in the mirror and promise those habits then stay away from all credit cards and that includes the secured types. The answer lies with YOU. It always has and it always will.