Card credit secured
It would be nice to spend our entire life without ever using a credit card, but many commercial centres require credit cards even if your prefer using cash to make payments. Business centres, hotels, commercial stores, airports, car rentals and many more require credit cards. So it is very important to have a credit card. Apart from this, having credit card is not the only purpose ; you should have good Credit score and Credit history maintained in it.
This helps to get you low interest rates if you plan to avail loans, insurance policies, mortgages etc. But unfortunately, if you are a fresher in holding a credit card or have a poor Credit score, then getting a regular credit card may get a little tough for you. In such a situation secured credit card will come to your rescue and help you improve your Credit score. There are many options available for availing a secured credit card ; however there are some points of which you should be clear of before you actually get one.
Costs involved: Like other regular credit cards, secured credit cards also have their charges and fees. These charges may include application fees, annual fees and processing fees. These are the common fees that are applied by many credit card issuing companies; they may even charge extra fees depending upon the policies of the company. Make sure you find out the charges and fees involved for your secured Credit Card, before you apply for one. Keep away from all the cards that demand high fees and consume most of your collateral deposit.
The amount of deposit: secured Credit cards get secured by the amount that you pay for your deposit. This deposit is stored in your account and can be utilized when you fail to make payments. secured credit cards come with both minimum as well as maximum deposit limits. Some credit cards hold the deposits in interest bearing account. Confirm whether you will earn any interest on your deposits, and if yes, how much.
Situations under which deposit can be used A few Credit ors use the deposit only in cases of serious misbehaviour or negligence. For example, due for 5 to 6 months. Other Credit ors may use your deposit for late payments.With the fear that the Credit or will withdraw the deposits from your account, this policy makes you more disciplined to make timely payments and if you are especially concerned of getting your complete deposit back.
What are the eligibility criteria's? Age or income limits may be applicable for specific secured credit cards. Even if you agree on making the deposits, Card companies may still have some conditions that need to be fulfilled.Most of the banks want their customers to hold a savings or checking account in their bank before approving a secured credit card.
The Credit limits: It is not necessary that you will get the Credit limit same as the amount of money you deposit. The bank may give you Credit for entire deposit or some percentage from it, making it less than its deposit. In ideal conditions, your Credit limit will be either same or more than your deposit.
Other Articles
