Important Reminders for Secured Credit Card Applicants
Before you start shopping for a secured credit card, we advise you to pay close attention to the following pointers.
Ask yourself this question: Can I afford it? Before you apply for a secured line of credit – or for any card program for that matter – we suggest that you take the time to consider if you can really afford it. After all, managing a credit card can be an additional financial burden, to you and even to your household. This is because you will have to pay not only the purchases and bills you will charge on your card but also the interest that will be imposed on all your transactions.
This means that you have to find time to examine your personal finances. Determine if you have enough funds to cover not only the security deposit requirement but also your future credit card charges. If you’re confident that you have more than enough cash to settle your financial obligations, completely then, it is safe for you to start shopping for a line of credit. However, if you find out that you’re living paycheck to paycheck then, it might be best to postpone your plans of applying for a credit card until you become more stable, financially.
Compare the features of various card programs. Don’t sign up for the first offer you will receive. Instead take the time to shop around and compare what each card issuer offers. Consider not only the rate of interest and fees, but also the related fees and charges, the credit limits, the terms and conditions imposed on the card program and the eligibility requirements. By doing so, you can improve your chances of finding a card program that will perfectly suit your needs and preferences.
Look for credible card issuers. Look for companies that are not only willing to give you what you want, but which also possess accreditation from the federal and state government. Always remember that by dealing only with accredited firms you can minimize your risk of getting ripped off by popular credit schemes. At the same time, you can protect your credit identity from individuals or organizations that might use it for their personal gain.
Examine the fine print of your chosen secured credit card. It is never wise to sign your contract without reading and examining first the stipulations of your card program. Remember that you can no longer turn back once you have finalized your credit agreement with your chosen issuer. So, as much as possible, read and understand all the terms and conditions of your card account before you make your final decision. That way, you can avoid having regrets, later on.
Stick to responsible credit habits. Resolve to manage your credit card in the most responsible way you can. See to it that you use just a quarter or a third of the spending limit set on your line of credit. And make sure that you pay your credit card bills on time and in full, each month. By doing so, you can cause great improvements to your credit history. Furthermore, you can soon qualify for an unsecured credit card with a higher spending limit and with less usage restrictions as compared to your secured card program.