Rebuild Your Credit History With Secured Credit Cards

June 11th, 2011 by admin
The card which is issued against a security deposit has to be well kept in the form of a savings account in a particular bank. A person who want to apply for this credit card should deposit a fixed sum of money in security. The deposit will be managed in accordance with the amount of money he need to pay as his due. This credit card has interest rates which are higher than others. There are factors like the previous credit history and the amount deposited based on which the credit limit is decided. It can either be the percentage or anything more than the percentage of deposit made in the bank. All these will be specified in the agreement signed by the card holder at the time of opening the account with the bank.

The bank performs the task of deduction their dues with the deposits which they have made in the bank as they are expected to make payments periodically. A person will be recognized as a positive card holder if he makes a regular payment as most of the banks send reports to few credit bureaus. The bank would not debit the account for a couple of defaults made even if the security deposits are made in the bank. Generally the deposit amount will be adjusted for any dues at the time of closing the account. A majority of people uses secured credit cards to build the credit history again.

Before making any decision for the secured credit card, the person has to do a complete research on the products available in the market, their existing rates and charges, etc. One who possess a good credit score should go for unsecured credit cards. The secured ones are been set for people who have no credit or bad credit score. In a situation like this, one need not worry about the money deposited as it is with the bank. The bank could be expected to give interest to the card holder if he has maintained the deposit for a shorter period of time. Before the account is opened, the card holder needs to check this information.

The secured credit cards offers similar charges of an ordinary one like application, annual and enquiry fee. The card holder has to study and understand the terms and conditions clearly before signing the agreement with the bank. The secured credits are much wanted as it attracts the ATM transactions and fee for balancing the credit card of a bank. The secured credit card is been referred as the best way to bring up your credit score as the report regarding this will be sent to different credit bureaus.

What is a good secured credit card?

I am trying to get my credit in good standing and I dont have any credit cards right now. I dont want to go applying for everything because that will look bad on my report.

I was told that a secured card will help me build up my credit
Is that true?
Are there easier ways to go about this task?
I can not get a card from my bank because I dont not have a bank right now

Answer
Are you coming from a damaged or new credit perspective?

Credit cards that most people carry around are unsecured loans. They have nothing but your good word and credit history to prove you will pay the loan.

Secured credit cards have cash collateral to back up in the event you default on the loan. It makes the bank more willing to issue credit to a person with a damaged or new credit history. Their stakes are lower.

With secured cards, you of course pay them an amount to hold for a given credit line. They won’t touch your deposit unless you default (don’t ever pay) on the credit card. Many banks will dump this into a Savings account.

As you pay the balance off, it is reported to the credit bureaus like any normal credit account and over time with good management your score will increase. In the future you may be eligible for a normal, unsecured credit card and I believe you get your deposit back.

As with normal credit cards, secured cards have many options to chose from. I went to bankrate.com and pulled a list of cards out there as well as some of the bigger banks. See what the fees and deposit requirements when choosing a card that’s best for you.

If you are building credit, don’t go beyond your means. Pay the thing off every month if you can or go way beyond the minimum payment.

Good luck on building an excellent credit history!

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Why Should You Bother With The Best Secured Credit Card Deal

June 10th, 2011 by admin

You can’t stop noticing the number of advertisements for credit card offers these days. It can be enticing to sign up as they offer attractive rates and appealing incentives. So, why should you bother with a secured credit card deal?

In some cases, secured credit card may be useful. If the finance companies often reject your application, then you lose the prospect of getting one. Without credit report, you obviously find it almost impossible to secure a card. If the court declares you as an insolvent, what are your chances of getting one? As you can see, it boils down to your personal financial situation. Nevertheless, don’t let it refrain from obtaining a credit card. You can opt for secured credit cards in such circumstances.

So, how does it work? The financial providers will require you to pledge your saving account with at least 500 dollars as collateral. Some of them may require higher deposits. Your credit limit depends on the sum of saving you have. This means that the card issuers will give a full credit line according to your account balance. Should you default your payment, you will lose your saving. Therefore, to obtain a credit card, you must have a saving account or a certificate of deposit with a minimum of 500 dollars. You will feel more comfortable having a credit card this way without worrying about over spending.

Usually the finance companies don’t accept standard card application if you have bad credit. So the other option is to apply for secured credit cards. They assess your application only based on your savings and not your credit history.

Being a college student, you know that obtaining a credit card is challenging because you need to establish your credit. You can’t get a regular one if you cannot present your credit history report. Therefore, most college students normally choose secured credit cards that demand no credit report.

Bankruptcy can prevent you from getting a normal card. The ideal way is to apply for a secured credit card. It is easier to obtain approval compared to other kinds of cards.

To determine the best deals, you check the offers from Visa, MasterCard, American Express, and Discover on the Internet. Doing online research can give you with valuable information about their offers. However, not all the offers are the same. So, you need to evaluate their offers first before you submit your application. Here is a potential list of items you should consider.

1. What are their interest rates?
2. Do they charge any extra fees such as an application fee?
3. Do they report to the three credit reporting bureaus about your application?

The best secured credit card should meet all your needs. Ideally, choose those that come with low interest rates and without application fees. Make sure that the card issuers report to the credit reporting bureaus. This will upgrade your credit score in the future provided you pay on time. This will further help you with your application for regular cards.

You need time and effort in diligently investigating and comparing different types of secured credit card deals. Whether you are a bankrupt, a student or a poor credit paymaster, secured credit cards are better choices even though you have a limit on how you spend your money. Best of all, you have a better money management because of the restriction.

Do you want more articles on credit card deal such as balance transfer and consolidation? Andy Lim created a web site on credit card tips. For free information, please go to his credit card website.

What does it take to qualify for a secured credit card?

I want a secured credit card to help build my credit back up. I have a 554 score due to a couple of past due balances.

I was wondering if I qualify for most secured cards and what are the typical qualifications for one.

Answer
If the past due balances are recent, you will not qualify. Most card companies – secured or sub-prime – will want a period of time w/ clean credit. You should call and talk to the bank you plan on applying with. Ask them what the min. credit score is, how long your credit has to be clean and min. amount for deposit.

At Secrets to Improve Your Credit Score blog, http://www.secretstoimproveyourcredit.blogspot.com/ – there is a list of over 20 different secured credit cards and requirements. There is even a secured card that has points!

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What exactly is secured credit card in addition to l ow do you go about getting one for myself

June 10th, 2011 by admin

But attaining that excellent credit score score and preserving it isn’t often incredibly effortless, and if you’ve obtained a small credit score score from past errors you may have built, gaining an additional credit score card to use to rebuild your score can be quite complicated.

 

1 resolution is what is regarded as a secured credit score card. This is a sort of card that is fundamentally meant for people today with lower credit scores who are thus viewed as high risk. When opening a secured credit card account, you will place down a deposit, which the credit score company will hold as collateral in the event you default on your payments. In other words, the card issuer will use that deposit to consider to recover their cash will need to you not make the payments essential to meet your obligations.

 

Secured credit score cards have credit score limits like ‘regular’ cards, and they differ from plan to plan. It is not unheard of for your restrict to be the similar as the deposit you have set down, that means if you deposit 200 bucks to open the account, then your card’s limit will be 200 bucks. Other programs may well enable you to have a restrict that is additional or a lot less than the deposit sum, depending, with people today with greater credit score scores gaining the larger limits as opposed to the lower limits persons with even worse credit score scores might get.

 

If you are looking at finding a secured card to assist restore your credit, make positive you read through all of the great print in advance of opening the account. However you will be essential to put down a deposit that is ostensibly there to act as collateral if you default, card issuers normally only go in advance and use that deposit when the account is closed fully. This means that if you are late on a payment, the card issuer may perhaps not get the payment from your deposit, and alternatively charge you late charges and interest for a even though ahead of they use your deposit. In this way, you can take care of to finish up with even a lot more financial debt than you commenced with if you are not mindful.

 

As lengthy as you continue to be vigilant about doing your payments and cautiously examine the terms ahead of agreeing to open up an account, a secured credit card may perhaps be a good option for you if you’re looking restore previous credit score errors or have no credit score to get started with. Just bear in mind that they are easier to acquire than ‘regular’ credit score cards since they can generally land you in far more scorching drinking water later on due to their service fees and restrictions.

 

Prepaid debit cards provide clients the relief of direct deposit, on line bill pay and the flexibleness of a credit score card. These cards show up the exact same as true credit score cards and could be used for just about all predicaments that call for a credit score card. Alternatively than permitting you a credit score limit that is based upon your monetary condition, these accounts want you to ‘load up’ the card with your own income.

Graduated with a diploma in finance. At the moment working as a banker and hope to rake in new purchasers to accomplish my purpose secured credit cards

Is a secured credit card a good way to establish credit?

I have no credit history cause i’ve never had a credit card or borrowed money or anything and I want to establish credit now. well I applied for a credit card that required a deposit..secured credit card will that help boost my credit and how high will my score go once i start establishing credit?

Answer
Well first, I would like to explain what makes up your score:

1. Payment history- 35%
2. Total debt owed vs. available credit- 30%
3. Length of time establishing credit- 15%
4. Types of credit established- 10%
5. Inquiries and New accounts- 10%

Ok, with all that said, I’ll answer your question.

Secured cards are a perfect way to establish credit. Being that you’re having to place a deposit upfront as collateral in order to secure a line of credit. Now the deposit wouldn’t be used unless the account became seriously delinquent, so whatever is charged on the card would need to be repaid like regular card. I’m going to point out some major advantages with a secured card.

The deposit is usually linked to either a savings account or certificate of deposit, which either way gains interest while you’re building credit. So, your money isn’t just sitting there. Also, by adding to the deposit, you can increase the credit line, which can help your score, because high limits not only show responsibility in using high limits, but it also creates a much-needed cushion between the total debt you have and available credit. So the higher you can get your limit, the better it looks when it reports on your credit.

Now a good way to use the card would be by making a small purchase ($20) that can be easily paid off on time every month. This not only shows activty on the account, but it also minimizes the interest that you have to pay, so the bill won’t get out of hand. I’ll give an example:

You buy like a couple of coffees at Starbuck’s or a CD of your favorite group every month, then pay it off when the bill comes. Then do it again. Also, add to the deposit as much as you can. Even though you would be increasing the credit line, you would treat the card as if it had a $50 limit, but you’re only spending $20. You do this like I said so the balance won’t get out of hand and you don’t get charged boatloads of interest.

Usually after a year or so of paying on time and keeping the balance low, if not 0, the card either converts to a regular card or a better card is offered. And more importantly, the deposit is given back to you with interest attached like I mentioned earlier. Although you’re using your own money, you’re “custom building” a high limit credit card, saving up money and building credit at the same time.

Like one poster said, there are some bad ones to avoid, so I took the liberty of posting links to some of the better ones out there.

As far as how much your score will go up, that will depend because having a credit card is only part of it. There’s 2 types of credit, revolving (credit cards, line of credit) and installment (student loans, auto loans, furniture loans, mortgages). You have to have a balanced mixture of the two to build a good score. But be patient, work hard, and most of all….

Good Luck!

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Why Should You Bother With The Best Secured Credit Card Deal

June 10th, 2011 by admin

You can’t stop noticing the number of advertisements for credit card offers these days. It can be enticing to sign up as they offer attractive rates and appealing incentives. So, why should you bother with a secured credit card deal?

In some cases, secured credit card may be useful. If the finance companies often reject your application, then you lose the prospect of getting one. Without credit report, you obviously find it almost impossible to secure a card. If the court declares you as an insolvent, what are your chances of getting one? As you can see, it boils down to your personal financial situation. Nevertheless, don’t let it refrain from obtaining a credit card. You can opt for secured credit cards in such circumstances.

So, how does it work? The financial providers will require you to pledge your saving account with at least 500 dollars as collateral. Some of them may require higher deposits. Your credit limit depends on the sum of saving you have. This means that the card issuers will give a full credit line according to your account balance. Should you default your payment, you will lose your saving. Therefore, to obtain a credit card, you must have a saving account or a certificate of deposit with a minimum of 500 dollars. You will feel more comfortable having a credit card this way without worrying about over spending.

Usually the finance companies don’t accept standard card application if you have bad credit. So the other option is to apply for secured credit cards. They assess your application only based on your savings and not your credit history.

Being a college student, you know that obtaining a credit card is challenging because you need to establish your credit. You can’t get a regular one if you cannot present your credit history report. Therefore, most college students normally choose secured credit cards that demand no credit report.

Bankruptcy can prevent you from getting a normal card. The ideal way is to apply for a secured credit card. It is easier to obtain approval compared to other kinds of cards.

To determine the best deals, you check the offers from Visa, MasterCard, American Express, and Discover on the Internet. Doing online research can give you with valuable information about their offers. However, not all the offers are the same. So, you need to evaluate their offers first before you submit your application. Here is a potential list of items you should consider.

1. What are their interest rates?
2. Do they charge any extra fees such as an application fee?
3. Do they report to the three credit reporting bureaus about your application?

The best secured credit card should meet all your needs. Ideally, choose those that come with low interest rates and without application fees. Make sure that the card issuers report to the credit reporting bureaus. This will upgrade your credit score in the future provided you pay on time. This will further help you with your application for regular cards.

You need time and effort in diligently investigating and comparing different types of secured credit card deals. Whether you are a bankrupt, a student or a poor credit paymaster, secured credit cards are better choices even though you have a limit on how you spend your money. Best of all, you have a better money management because of the restriction.

Do you want more articles on credit card deal such as balance transfer and consolidation? Andy Lim created a web site on credit card tips. For free information, please go to his credit card website.

Im 17, can I apply for a capitol one secured credit card?

I dont want to go spend $200 a month, but itd be cool to spend $25 a month and pay it back to earn some credit with a secured card. Do I have to wait until I’m 18, and if so when Im 18 will they approve me?

Answer
see http://www.esuperfind.com/PublicSavingsBank.php somewhere they have the customer agreement in pdf you can download and it’ll be in there

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Cleaning Credit With Secured Credit Cards And Subprime Merchandise Cards

June 7th, 2011 by admin

Cleaning credit with secured credit cards and sub-prime merchandise cards can be an alternative for the credit challenged. Basically, when your FICO score falls below certain levels, it becomes increasingly difficult to get credit of any kind at a reasonable cost. Obtaining a credit card, if even possible, begins to resemble pawn-shop and loan-shark interest rates. When you find yourself in a situation like this, there are steps you can take for credit clean up.

Using a secured credit card for a period of time can help with credit clean up, even if it is for a price. A secured credit card is basically what the name says, a credit card secured by a cash deposit with the card issuer. For instance, placing say $400 in a deposit account with a participating bank or lender would entitle you to $400 worth of credit, or some amount close to that. You may wonder why not just spend the cash instead of leaving money in the account, and instead of paying the monthly fees and expense. After all, some shopping for these cards will show that the fees can be quite high. Well, the answer is that this is a price to pay for cleaning credit as you go. By making your normal purchases with the secured card, and consistently paying it off at each statement, this information begins to be reported to your credit history. By doing this over a period of time, all those on time payments begin to drown out the negatives on your reports, and soon you will see an improvement in your credit score.

Using a secured card in this way takes a bit of discipline though, and you will find that you really do not want to miss a payment. And, your budget may force you to start small and grow slowly. If you can only afford a $200 deposit, start with that and manage it carefully. After all, the money management is what they want to see on your credit history. Another common sense tip with secured credit cards is not to use them for extra holiday or fun spending. At the end of the day they are meant to be and should be used as a credit cleaning tool.

Sub-prime merchandise cards can also be an alternative for the credit challenged. Cards of this type are attached to a line of credit that allows you to buy merchandise from a particular vendor. You will be required in most cases to put down a deposit on your purchased items, and the balance is financed on the card. Again there is a price for this, but it is the cost of credit clean up. The merchant captures your business along with sales they wouldn’t normally have gotten in trade for the risk of extending credit to the credit challenged. That risk can have a cost to the merchant, and hence the extra cost. However, like the secured credit card, good payment histories are reflected directly to your credit history report.

Again, as with a secured credit card, sub-prime merchandise cards take a bit of thought and discipline. Both issuers have a very short tolerance for late or missed payments. So try to use the card for what you would normally spend, and place that amount aside immediately in your budget to be sure to make the payments. Both of the above cards show up as new lines of credit, and good payment histories from them are reflected on your report. In this way, both cards serve to bury or replace the bad information on your report over time. The extra costs of credit cleanup are far less than the costs of higher insurance premiums, missed job qualifications, and high risk loan interest rates.

Cleaning credit using the above methods are not the only tools you have available. And, they may or may not fit your situation. But, millions of people have and will continue to use both types of cards for credit cleanup and credit building efforts.

Learn more credit cleanup tips and tools at Credit Cleanup Guide and at Credit Cleanup Coach.

How long to keep a secured credit card open?

I need to improve my credit, so I decided on a secured card. My question is after a year, can I close the account or should I keep it open? I’d like to have my deposit back lol.

Another quick question, I’m paying on a tv right now (50/month), do you think its a good idea to use the scc to pay the monthly payment on the tv and then pay off the balance towards the bank? Seems like a win/win to me.

Answer
Regarding your first question, if you can get an unsecured credit card and you anticipate future credit card activities, then get an unsecured card first before you close the first account.

In answer to your second question, if the interest rate on your TV are higher than the interest rate on your credit card, then by all means put the TV balance on the credit card. If it’s not, keep the arrangement as is.

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Best Secured Credit Card Offers

June 4th, 2011 by admin

Secured credit card offers a lot of different benefits which may include; they are safer, convenient to use and easier to carry than cash. You are empowered to buy goods and get other services and charge them to your credit for later payments.

They also offer customer protection under the law, most of the major cards are acceptable in most places world wide, they can also server as cash during an emergency, another advantage you will have is with holding payments until the mix up is resolved, secure credit cards offers guarantees to motel and travel reservations.

To have a secured credit card comes with its share of responsibilities and improper use can land you into huge depts.

And ruin your credit report which in tern can be difficult to rectify. To get secure credit card offers you must at least be 18 years of age and have a stable source that generators you income.

You must also be able to prove to the credit company that you are a perfect risk to be able to give you credit card offers.

All this will be reflected in your credit report so it is advisable to request for your annual copy for accuracy before applying for the credit card to have an overview of your credit report.

The data that you will get in the above section will enable you to make accurate decisions that will enlighten you on comparing different credit cards, have fraud protection that will enhance your secure credit card offers.

It will not heart to have a good credit back ground when you want to make an application for credit finance for you house, car. And bellow will state major ways to get started in attaining proper credit records.

Make sure that the credit card you are applying for report to credit companies to build up your credit history report.

You can consider having a joint credit card with a person with a good credit report if you do not qualify to get a credit card.

You should always try to avoid scams as much as possible keeping in mind that there are many people will to take advantage of good offers to have personal gains.

On this note you should keep in mind that you alone can decide to guarantee yourself credit and no body else. 

Discover where to get the best secured credit card offers. Learn how to apply for secured credit card online.

What is the best secured credit card?

I have had many kinds of secured cards, including Tribute/Salute, First Premier, Centennial, Applied Bank, New Millenium, etc…They were all pretty bad and I really didn’t do much to improve my credit at all. Anyone know of a reasonable one, esp. with the new credit card reforms in place? Thanks.

Answer
all the ones you mention are ok cards to get you started but UltraVX visa is one of the best ones that could help you rebuild credit this credit card reports to all three major credit agencies on a monthly basis and will get you approve go to www.fastcreditcardapprovals.com under bad credit section and look for this card use it for a few months just enough to build some credit then you could apply for a better one and drop this one. Good Luck

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How to apply for a secured credit card

June 1st, 2011 by admin

What are the secured credit cards? A secured credit as the name suggests is a credit creation and is backed by security.  It is a truly innovative solution, where the credit card companies have stepped in the role of a lenders and banks which give loans and mortgages. Credit cards are usually known as the digital money or plastic money. They are usually of two kinds, secured credit cards and prepaid credit cards. In case of a secured credit card, the security is deposited in the form of cash to the credit card company. Moreover, this money is placed in the deposit account.

In fact the credit that can be used by the card holder is given by the credit card company on the basis of the deposited amount. Furthermore, it is compulsory for the credit card holder to deposit at least 100-200% of the credit value. Choosing the right secured credit cards is very important. This involves the process of collecting all the information of a credit card company, calculating your monthly exchange as well as the service charge levied by the credit card company. Importantly, these charges must not exceed your monthly budget otherwise the transaction will become too costly to handle. In addition, getting a secured credit card depends a lot on your credit history which involves aspects like good and bad credit score. There can be hundreds of reasons for a bad credit score. FICO score is the most widely used credit scoring system. However, your credit score depends a lot on what kind of loan you are applying for. In case you are applying for a home loan and your credit score is less than 620, then it is considered a bad credit score.

Moreover, if you are a college student having a bad credit history and looking out for credit cards with bad credit, your APR (Annual Percentage Rate) would be higher and the fees would be lower as the credit card is issued for the students. Therefore, planning your expenditures for at least one billing cycle is very important. In fact you can choose from among the two kinds of APR, namely floating and fixed. Truly speaking, the fixed APR is better between the two because it avoids the circumstances when the APR might immediately shoot up one year and cause you immense harm. Apparently, a floating APR usually floats in a particular bracket affecting your monthly budget greatly.

The next important aspect to consider is the security required for creating the credit. You would be happy to know that since it is a student credit card, it is not compulsorily a secured credit card. However, there are many credit card companies which demand a certain deposit that is equivalent to the credit limit of your card. Finally, if you are planning to get a secured credit card, consider three aspects, namely the APR, the security deposit that you have to provide, and finally the credit limit of your card before finalizing a particular company. All these things must be good enough and well suited to your budget.

Richard Towler is the author of this article on Secured Credit Cards 4U. Find more information about Bad Credit Credit Cards here.

What is the difference between a secured and unsecured credit card?

I want to go on a trip and rent a car and get a hotel room. I have a credit card but it is over it’s limit and I applied for a credit card and got rejected. I don’t know what a secured credit card is. Can a secured credit card be used the same as a normal one. Do you put money on it like a debit card? Any help will be helpful. Thank you.

Answer
First pay down the card you have.

Yes s ecured card is simply that a credit card you secure with funds of your own. In certain cases the credit card company may offer you for a $250 deposit $500 to $1,000 in credit at the fantastic rate of $29.9% plus. These credit cards are rip offs and should be avoided like the plague that they are.

You have a credit card. Pay off some or all of your balance and then take your trip. Or better yet. pay off your credit card, save the money you need and then take your trip.

Good luck, I would stay away form any guaranteed card. The fees are high and the convenience is low.

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Secured Credit Card Offers Could They be the Most Effective Solution to Suit Your Financial Needs

May 29th, 2011 by admin

There are a variety of reasons why some consumers should be thinking about choosing secured credit card offers. They provide a powerful way to study just how credit works, and also provide you with a credit line to help establish or enhance your current credit scores.

 

As opposed to a traditional bank card, how much money you have available to make purchases will depend on the amount of money you have put into a secure account. By way of example, when you’ve got $500 within the account, you may acquire up to $500 in credit.

 

In some instances if you make payments in time and do not go past the limit, the credit card could become partly secured, or all your cash deposit could possibly be returned to you according to your creditor’s guidelines. That’s the reason it truly is critical to discover the best credit card offers.

 

Any time you are looking at the different secured credit card offers that are out there, you should think about all of the costs in addition to the APRs that happen to be associated with the specific cards. Due to the fact that each and every creditor maintains different terms, it truly is necessary that you acquire the one that matches your requirements.

 

With the Citi Secured Card, you have a card account containing all the key benefits of a traditional card, though with a collateralized account balance that you set up. Your cash is put into a certificate of deposit which usually begins to make you money at the same time providing you with the benefits of a bank card. Meaning your card can in essence begin to pay for itself.

 

This card can be used in virtually all circumstances that credit might be required, on top of that, as soon as the required term of eighteen months has passed, you may become qualified for an unsecured credit card issued through this creditor. This is certainly a great way to have some savings and having a bank card for urgent matters.

 

With a minimal $18 annual fee together with 17.49% APR the Wells Fargo secured bank card is an excellent choice. Because it is applied towards a collateral account, you are able to insert money when needed through any Wells Fargo location, you cannot, however, take from these funds before you’ve paid a portion of the total amount to get it under what is at present due.

 

Keep in mind that secured credit cards present the same dangers as a standard credit card. Whereas the issuer reports all payments which were made promptly, they are going to report late payments too. Utilize your best judgment when you’re deciding upon these secured credit card offers and understand the particular conditions and terms laid out through the provider.

Are Secured Credit Card Offers the correct choice available for you? Identify just what the best credit card offers currently are to suit your needs.

What is the best Secured Credit Card to get?

I’m looking to help bump up my credit score. I would like a card with low annual fee’s and possibly no application or processing fee’s.

But I also heard that it can be just as good to take out a small personal loan and pay it back on time, and that it will do the same thing as a secured card. Is this true?

Thanks!

Answer
The best are offered by Orchard and Citi Bank.
They don’t have the lowest annual fees – but are not scam cards.
Compare both of these to the bank you have a checking account with.

It is best to make a secured loan.
You drop $1,500 to $3,000 into an savings or a cd and make a loan against it.
Tell the bank you plan to do this first to develop your credit.
They don’t care – they are making money.
Make sure they report to all 3 credit bureaus.

A personal loan is extremely hard to get.
You will see interest rates that you didn’t know existed.
Only if you have amazing credit or strong collateral can you get a good deal on a personal loan…

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Get Credit Again With Secured Credit Cards

May 26th, 2011 by admin

Secured credit cards provide people with bad credit the opportunity to enjoy the benefits of having a credit card. If you are looking to restore your credit, bank secured credit cards provide a viable option. This card usually only requires a savings or checking and account.

These cards work like regular credit cards except that the funds are secured by your checking account. In the event you are unable to pay your bill by the due date, funds are withdrawn from your account. This protects the bank from default while it allows you to enjoy the benefits of having a credit card.

If you have bad credit or no credit history at all, secured credit cards give you the opportunity to restore your credit by making payments on time. As you develop a history of timely payments, you credit history will improve. As your credit score improves, you will be able to get a credit card without using your checking account as collateral.

The great benefit about these cards is that you will never go into credit card debt as you are only allowed to spend the money you have in your account. Although this is a great benefit, the goal is to use the card responsibly as if this is an unsecured card.

There are disadvantages to secured credit cards in the event that you don’t pay your bill on time. Just like unsecured cards, you can get hit with late fees and interest. As you let interest and late fees accrue, the money in your account will dwindle to cover these fees. Also these late payments can be reported to the credit bureaus and you will lose any credit repair benefit which is the reason you have a bank secured card in the first place.

If you need to establish credit whether due to no credit or bad credit, a secured credit card can help you get started. Just like a regular unsecured card, you need to pay your bills on time to avoid late fees and negative marks on you credit. As you build a solid repayment history, your credit will improve and you will be able to qualify for unsecured credit cards.

The author runs the website Prepaid Cash Card. Although this site deals primarily with prepaid debit cards, you’ll find information on personal finance, credit cards, and other financial topics. You can also find offers for prepaid credit cards, free credit reports, credit repair, and other great financial offers. Click Here to visit Prepaid Cash Cards.

how does a secured credit card improve my credit score?

does a secured credit card have “hidden fees”? i have looked into a couple of secured cards but am in need of advice…and need to do more research. i have a lousy credit score thanks to my lousy ex-husband – please don’t expect me to explain. thanks.

Answer
There are some secured cards that are absolutely loaded with all sorts of fees. Stay far away from them. Instead check with your bank.

Basically, you pay a deposit which is held as collateral against the line of credit. You use the card and pay every month (pay in full is best). This builds good payment history. After about 12 months, you should be able to convert the secured card to a regular credit card. You need at least 24 months of consistent, on time payment history to improve your score.

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Credit Cards That Rebuild CreditTop 3 Secured Credit Cards

May 23rd, 2011 by admin

Looking for secured credit cards that rebuild your credit?

Did you know that not all secured credit cards report to all three major credit agencies?

Whether you are looking to rebuild credit after bankruptcy or recover from past credit problems taking the time to understand the process is just as important as the process itself.

If you truly want to make the most positive impact to your credit reports then you should avoid high risk lenders at all costs no matter how enticing their secured credit card offers are.

In the long run using high risk lenders like First Premier Bank for example can ultimately hurt your credit scores rather than improve it simply because the issuer is known for extending credit to high risk individuals.

In addition you should only select secured credit cards that report your payment history to all three major credit agencies.

If you end up using a secured credit card that reports to only one credit agency then you hardly leverage the positive payments you’re establishing with that account.

It’s simple common sense that one positive trade line reporting to all three major credit agencies will make a much greater impact on your credit scores then just one trade line on one credit file.

So to save you time and make life easier here’s my top three secured credit cards that rebuild credit and meet the standards that I outlined above.

Secured Credit Cards That Rebuild Credit

# 1 Public Savings Bank Open Sky Secured Visa Credit Card

With this card you can choose your credit limit from $200 to $3,000 and best of all there’s no credit check for approval.

They do charge a flat $50 per year fee but there’s no other upfront or monthly charges like you’ll see from a lot of other card issuers.

Here are some other benefits:

*No credit history and no checking account required

*Prime plus 6.5% variable APR- Not an introductory rate

*They report to all three credit bureaus, so you’ll start building your credit fast

*Four options for funding your card

# 2 Orchard Bank Classic Master Card

Now with Orchard bank they do pull a credit check and based on your profile they will either offer you an unsecured or secured credit card.

Here are some other benefits:

*An excellent credit card for help rebuilding credit scores; reports to all 3 major credit bureaus monthly!

*Acceptance at millions of locations worldwide, including website purchases and reservations

*Your account information is updated and at your fingertips 24/7 so you can manage it your way

*Email and text messages are available to remind you of your upcoming payment due date

# 3 Orchard Bank Visa Classic

*Reports to 3 major credit bureaus monthly providing you the opportunity to rebuild your credit score!

*Acceptance at millions of locations including website purchases and reservations

*Your account information is updated and at your fingertips 24/7 so you can manage it your way

*Email and text messages are available to remind you of your upcoming payment due date

On a final note when you decide to apply for a secured credit card remember there are three main factors that you control which is the credit limit you set, your balance owing, and credit usage.

Now if your funds are limited you may have to start out with a low deposit but remember to keep your debt to credit limit ratios at no more than 30% and use your card on a regular basis to establish a consistent payment history.

About the Author Marco Carbajo is founder of the Business Credit Insiders Circle. A step-by-step business credit building system providing personal and business lines of credit. Follow Marco on Twitter @MarcoCarbajo and read more insights on credit cards that rebuild credit.

on a secured card do you need to keep a small balance to increase your credit score?

I don’t ever ever ever want to pay interest on my new secured credit card. I was told by the banker at the bank that approved me, that I would need to keep a small balance on the card and pay the minimum to increase my credit score. Is there a way to increase my credit score without ever paying interest?

Answer
You can use this credit monitoring service to pre-estimate future scores for different scenarios of such payments – buildcredit.ifastnet.com

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