Secured Credit Card – How Good It Is? NEWHORIZON.ORG
A secured credit card is a wonderful option for anyone who has poor credit and needs to ďŹ nd a way to be able to use a card when they go to the store. These cards are typically secured with some kind of cash deposit, similar to the kind of cash deposit that you would put down when you move into an apartment.
In most cases, the amount of cash that you have to put down right away is going to be the same as your original credit limit. Once you have shown your ability to make your monthly payments, you will sometimes have the ability to raise your credit limit now and then.
This is the best way to improve your overall credit score if you are dealing with a rather poor score right now. In some cases, you may be able to get a credit limit that totals four times the amount of money that you had to put down for the security deposit. These are going to be the credit cards that you will want to look at getting if you are someone who has not had the best luck when it comes to your credit history.
Although most secured credit cards for poor credit are going to be fine options, you still need to figure out which cards are going to be right for you. A secured credit card is only going to work for you if you pick out the right one, so make sure that you take your time during the selection process. The best way to find the perfect card for your wallet is to take a look at several different reviews to make sure that you can read everything there is to know about these cards. Reading reviews from a variety of different sources is also a good idea because you want to make sure that you are not just getting one opinion on the matter.
If you can stay on top of your payments and slowly earn a better credit score, you will eventually be able to get a real credit card that comes with a better set of rewards and features that you will not ďŹ nd on most secured cards. If you can work well with one credit card company for a long time, then they may notify you that you are eligible for an upgrade shortly. It is up to you to decide whether or not you want to take the upgrade, but it is almost always worth it in the long run.
Anyone who can move from a secured card to an actual credit card should do it because you won’t ďŹ nd features such as cash back and travel rewards on any kind of secured card. You will also get your security deposit back once you close the secured credit card for poor credit, which means that you will have a little bit of extra spending money when you open that new credit card with all of the extra features.