Frequently Asked Questions About Secured Credit Cards 毒杀小天鹅案宣判 刘洲成再怼前妻

Finance Secured credit cards are not only meant for people with good to excellent credit ratings but also to individuals with bad credit. Before you apply for one, get to know this type of credit card first. 1. What is a secured credit card? It is a type of credit card that requires the submission of cash deposit. The deposit made will often determine your credit limit although some Issuers offer a slightly higher or lower limit than the amount of cash deposited. 2. How do I apply for this type of card? Most banks and credit card issuers have their own version of this type of plastic card. You can personally apply from your local bank or send an application online. Credit unions may also offer secured credit cards for those with bad credit history. As a member of the union, you may be able to get a lower interest rate and lower fees. 3. What fees should you be aware of? Some issuers will require an application fee while some might offer free activation of your account. All secured credit cards carry annual fees but if you compare your options, you should be able to find one with a reasonable annual fee. Check the fine print. See to it that you understand all fees associated with your chosen secured credit card. 4. How much is the security deposit? Generally, the security deposit ranges from $300 to $500. On the other hand, if you are aiming for a card with a higher credit line, expect a much higher deposit in your account as well. 5. Can this type of credit card help me get out of bad credit? This will depend on the type of secured card you will get and the way you will handle your account. Some secured cards in the market offer reasonable fees and conditions while others may come with hidden costs and expensive charges. You can use it as tool for rebuilding credit by limiting your monthly expenses. Furthermore, if your chosen card reports your payments to all three major credit bureaus, your credit report can be updated immediately and you can raise your credit score quickly. 6. Will others know that I’m using a credit card for bad credit? No. There is no chance that people will know you have a bad credit history since a secured credit card looks exactly like a regular credit card. That information is only between you and your secured card Issuer. 7. Will my deposit earn interest? This will depend on the Issuer. Some Issuers will place your deposit in a timed deposit account which means it will earn interest. However, before signing up your contract, get to know how long your money has to stay in the deposit account should you want to terminate your secured card. Also, you’ll want to understand whether the interest your money earned will go to your Issuer or your own pockets. 8. Can I get an upgrade to unsecured credit card? Some secured card issuers offer an automatic upgrade for its holders after at least a year of consistent payments. However, if your chosen secured credit card does not offer this provision, you may request for an unsecured credit card after proving your creditworthiness as a credit cardholder. Copyright (c) 2010 Tara Tiemann About the Author: 相关的主题文章: