September 24, 2013

What is a secured credit card? If used wisely, what is the value of this type of card and who can benefit?

5 thoughts on “September 24, 2013”

  1. Macala says:

    A secured credit card requires you to make a deposit against the card’s credit limit. Your credit limit will usually be a percentage of your security deposit or it may be the same as your deposit. Many banks place your deposit into an interest-bearing savings account where it stays until you close your account, upgrade to an unsecured credit card, or default on your credit card balance.
    Secured credit cards act just like regular credit cards. Purchases reduce your available credit and you’re required to make monthly minimum payments on your balance. If your secured credit card has a grace period, you can avoid paying finance charges by paying your balance in full each month. Late payments and over-the-limit transactions are penalized with a fee. A secured credit card can help you build credit and higher your credit score which is a huge benefit! Someone who isn’t ready for a full blown credit card could go with this option and practice using something like a credit card. After time, one may feel they are ready for an actual credit card.

  2. Katherine Graham says:

    A secured credit card requires a cash collateral deposit that becomes the credit line for that account. The value in a secured credit card is that a person can prepare themselves for a real credit card. Secure credit cards can benefit people who have either no credit or bad credit. A secured credit card can help you build credit, so this can help a person get a real credit card when they are ready for one.

  3. Alex Christianson says:

    A secured credit card is a credit card that requires a cash collateral deposit that will become the credit line for that account. You can add to the deposit to gain more credit. An example: Bob opens up a secured credit card account and deposits $350. He then decides that he can put a little more into the account so he puts in another $50 to make a total credit line of $400.

    Some benefits to you: you can establish a credit history or use it to help repair a bad score. It is plastic, so it is quick and easy to use. Some places(although not too many) do not accept cash, and therefore plastic comes into play.

  4. Mike Finley says:

    Now that’s what I’m talking about! You three were jolly on the spot to answer this question and all of you provided insightful commentary. Macala happened to be first. Well done!

  5. Clara says:

    I’d recommend that you go to the Bank of America Website and apply for a crdiet card there. If you have a clean crdiet record, you’ll probably qualify for their 99/500 secured crdiet card. You send them $99 and they send you a crdiet card with a $500 crdiet limit. That takes care of your first card. In a year, write to Bank of America and ask them to graduate your crdiet card to unsecured status.In ten months after getting your Bank of America card, go to the Capital One Website and apply for your second crdiet card. They’ll probably offer you an unsecured crdiet card and enroll you in their Credit Steps program. This means, for example, that the card might start with a $300 crdiet limit. After three months, it might move to a $500 crdiet limit. Another three more months, and it moves to a $750 crdiet limit. Then the Credit Steps program ends. About six months later, you’ll receive a solicitation from them that invites you to apply for a second crdiet card.A few more things. Never, EVER be late on a payment. Keep your spending to no more than 30% of each card’s crdiet limit. And don’t pay your crdiet-card bill until AFTER the statement arrives. Reason? We had a nut on here last week who would buy something with a crdiet card, then immediately go on line to pay off the charge. This means that his card would report a balance of zero to the crdiet bureaus. FICO measures your use of crdiet, and a constant balance of zero would leave it nothing to measure. I’m not saying that you should carry a balance or rack up interest charges. I’m saying that you have to let the crdiet-card company REPORT a balance BEFORE you pay it in full.Good luck!

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