Secured credit cards
are useful if you have had a history of bankruptcy,
a poor payment history, or if you wish to establish a credit. Secured
credit enables you to establish a record of credit worthiness to
future lenders. To qualify for secured credit cards, you are generally
required to deposit a set amount of money that will insure that you will
make payments on the balance due. In some cases, you may even get a
credit limit higher than your initial deposit.
When shopping for secured credit
cards, realize that you may be charged application and processing fees in
addition to annual fees. You also need to pay close attention to the
interest rate that is charged on secured credit cards, and the grace
period on purchases before finance charges begin to accrue. Before
accepting any secured credit cards, verify that your credit record will be
reported to at least one of the three main credit bureaus. It may be
reported as a secured debt or as a regular debt. Given a choice, having
information from your secured credit cards recorded as a regular debt is
much better. |