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SECURED Credit CardS: How they work |
Secured credit cards can be an invaluable resource, especially for people with little or no credit. They also provide an excellent way to build (or rebuild) your credit rating.
With so many purchases requiring credit cards, the secured option can make your life so much easier and are usually much easier to qualify for than traditional credit cards. Online purchases, phone purchases, hotel, airline and car reservations - there are more and more cases when cash simply doesn't get the job done.
Unlike traditional credit cards, secured credit cards requirements are much more lenient since they're secured with collateral in the form of a cash deposit that the card issuer keeps on account.
Issuers of secured credit cards charge an annual and/or activation fee. Additionally, balances not paid off in full are charged interest on a monthly basis the same as traditional cards.
Even with little or no credit, secured credit cards are usually attainable and the perfect option to get your credit history on track.
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