Secured Credit Cards is The Best Tool For Building Your Credit Score
If you have been turned down for traditional credit cards a secured credit card may be the proper product for you.
Having a credit card is a must. You require a credit card for the most basic of financial transations. Like renting an automobile or for reserving hotel reservations. People without credit cards are locked out of the e commerce revolution, since a credit card is expected to purchase online.
Secured credits were created for those who can not get qualified for a credit card based on either having bad credit or not having any credit at all.
The Advantages of a Secured Credit Card
While it is true that a debit card can be used in place of a credit card. The difficulty with that is most debt cards cannot help you rebuild your credit. Since cash is drawn by a debit card from your checking account or savings at the minute you make a purchase, there's absolutely no risk of you not paying, and since you are utilizing your own cash, you aren't revealing future creditors that you can can manage a line of credit.
A secured credit card drops somewhere in between. To be able to set up an account, you have to place funds in a savings account. This account subsequently secures your credit card (and also acts as your credit cards for bad credit limit), meaning that should you neglect to cover a large amount of time, they are going to take the funds from the savings account.
The great news is the fact that interest is earned on your own savings account. Your card will also show up on your credit bureau. To a lender, it'll simply look like a standard credit line. Which gives you the opportunity to give yourself a big line of credit by depositing a sizable amount in your savings account. One of the backing standards for any loan is "similar credit". Similar credit means if you're buying loan of $10,000 the bank it. to will look to see if you've ever managed credit line of that sum or close
Unlike poor credit unsecured credit cards that generally have an extremely low credit limit (normally less than $500). Your credit card that is secured can not be as low as $10,000! Making it simpler to qualify for credit cards and loans in the foreseeable future. Another good thing about credit cards to rebuild credit is that with timely payments, not only will it report that fact in your credit file, thus rebuilding / building your credit. But your credit card could be converted to an unsecured credit and the bank will RETURN YOUR SECURITY DEPOSIT AS WELL AS THE INTEREST EARNED!
For a list of secured credit cards that you could apply for online, please visit this website http://www.badcreditresources.com/secured-credit-card.html