Pros and Cons of Secured Student Credit Cards

August 23rd, 2011 by admin

Many college, and even high school, students have a need for carrying a credit card. Often, however, these students are not yet financially responsible for themselves and still rely on their parents to help take care of their financial responsibilities. Therefore, secured student credit cards may be a great option for parents with children who are still in school. Nonetheless, the pros and cons of secured student credit cards need to weighed in order to determine if they are the right choice for you.

Pro: Secured Student Credit Cards Allow You to Monitor Spending

Secured credit cards are different from traditional credit cards in that you put funds on the credit card ahead of time. Therefore, the only money that is spent with the card is the money that is put on to it. In other words, a line of credit is not extended. Therefore, you don’t have to worry about your child creating a humongous debt that you have to pay for.

In addition to preventing your child from going into debt, a secured student credit card also allows you to set your child up with an allowance. You can determine how much money you want to give your child to spend each month and you deposit the money onto the card. Depositing money onto these cards is easy. You can set it up so that a portion of your check is deposited onto the credit card each payday. Or, you can send money to the credit card company or deposit the money at select locations. This makes it much easier to get money to your child quickly if needed.

Con: Secured Student Credit Cards have a Number of Associated Fees

Although secured student credit cards allow you to monitor your child’s spending habits, there are a number of fees associated with these guards. Generally, there is a fee to set the account up in the first place. Often, there are also annual fees and even monthly fees. In addition, each time you deposit money onto the card, you are usually assessed a small fee. All of these fees add up and can make the student credit card quite costly. Of course, these costs are still less then paying late fees or paying a large debt incurred with a line of credit.

Pro: Secured Student Credit Cards Provide Freedom and Flexibility

One of the best pros of credit cards for college students or high school students is that they allow your child to have the freedom and flexibility that is part of being a credit card holder. These cards do not look any different from traditional credit cards and are accepted at all of the same places. Therefore, your child can use the secured student credit card to purchases necessary items without having to ask you for it or making you have to go out and buy the item.

This is particularly helpful for college students when it comes to purchasing books and other school supplies, as the college may be located pretty far away from home. This makes it highly impractical for you to come to the school to make purchases for your child. Similarly, sending checks can take too long and can make your college student late in purchasing items he or she needs for school.

Pro: Secured Student Credit Cards Teach your Child Financial Responsibility

One of the best perks of a secured student credit card is that it starts your child down the road of financial responsibility. When you deposit money onto the card, your child has to learn how to responsibly use the money provided. In addition, most secured student credit cards report to credit bureaus, and the report will be in your child’s name. This helps to build a credit history for your child, which will make it easier for him or her to acquire loans or other credit cards in the future. Before applying for a card, however, make sure it does report to these bureaus in order to receive this added benefit.

For more information on student credit cards, Kim Stevens recommends that you visit CreditCardAssist.com.

How easy are student credit cards to get? Do u have to have a job?

Answer
First off, dont listen to anybody that says “dont get a credit card” In todays society it is crucial to have one so you can have a good FICO. And how will you buy a home without a line of credit?

Back to your question, my first credit card was with Credit One
www.creditonebank.com (Im pretty sure thats the URL)
I was just graduating high school and I didnt even have a job. They gave me a card with a $200 credit line. When you’ve never had established credit its harder than hell to apply. Try Credit One. I hope it works for you

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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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Bad Credit Secured Loans Repair Credit With Suitable Assistance

June 8th, 2011 by admin

For financial service providers and banks, credit record and financial status of the borrower matters a lot therefore, they conduct credit check procedure for approving any loan request. In such a situation, bad credit borrowers suffer a lot, as very few banks and financial institutions offer financial services for them. However, with changing requirements and trends of financial market, financial service providers have also started considering bad credit borrower as a prolific consumer group. In fact, once bad credit borrower repays his or her debt on time, he or she gets additional credit points and that helps the borrower in moving towards a financially secured future. This not only helps in repairing credit but also leads to a prosperous future, as next time the borrower will not have to worry about his or her credit history. Once the borrower gets involved with a renowned lender, bank or financial institution, he or she can be rest assured about future financial problems, as they will be solved without making any extra effort. Bad credit borrowers, who possess any high valued property such as home, automobile or land, may use their equity to get suitable loans. Bad credit secured loans are one of those financial services that are specially tailored for those bad credit borrowers, who are ready to use their equity in assets.

bad credit secured-loans are really very beneficial for every bad credit borrower, as these loans do not consider bad credit history for approving the request. It is true that sometimes, bad credit borrowers feel very lonely, as most of the banks and financial institutions, reject their loan request after seeing their credit condition. However, with bad credit secured loans the borrower can be rest assured about his or bad credit history and can avail the required amount without any delay.

Few years back, financial market was not so lenient for bad credit borrowers and most of financial institutions used to restrict services of people, who possess bad credit history. With changing time and tends, such institutions have understood that ignoring such borrower section can cause affect their popularity level therefore, they are offing bad credit secured loans to get a hold on this consumer group. In fact, this strategy worked for them and most of their bad credit borrowers have now earned a good credit score.

At the initial stages, loans for bad credit borrowers were very expensive and limited but now these loans carry reasonable interest rate and do affect financial privileges of the bad credit borrower. Bad credit secured loans carry affordable interest rates, so that every borrower may go for these loans without bothering for repayment. The basic motive of these loans is to motivate bad credit borrowers for developing a good credit score, as by doing so the borrower will get more financial benefits. For lenders, these loans are like an investment as with these loans they get reliable and long-term consumers to enhance their popularity level.

Kenneth Robert is an expert financial advisor therefore he can tell you how to look better, live better and breathe better by giving you tips to improve your finances. To know more about bad credit secured-loans,No income proof secured loans and secured home loans visit http://www.applyforsecuredloans.co.uk

With bad credit, can I refinance my mortgage to the lower rate or will my bad credit prevent me from refi?

I have heard conflicting reports on this.

Now paying rate: 6.25%
Mortgage Rates today: 4.5%

Can I get the lower rate with bad credit?
So I guess the gentleman on Good Morning America does not have his facts straight. He said even with bad credit your mortgage company will refinance because the lower rate will help you stay current on your house note.

Answer
Actually it might be possible under the new “Home Affordable Refinance Program”, this requires most Fannie Mae and Freddie Mac lenders to work with you, if you have certain circumstances. Here is a website to check it out:

http://www.makinghomeaffordable.gov

GOOD LUCK!

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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 loan Discover the ways to use a secured loan to build or rebuild credit

June 1st, 2011 by admin

This method is good if you are rebuilding or building credit for the first time. Save $500-$1000 and then visit various banks with your credit report in hand asking them whether they do secure passbook loans based on your savings. Once they agree, ask the loan officer if there is a prepayment penalty, what the interest rate is, and what credit bureaus they report to.

Apply for a 12-month passbook loan, then with the loan from the first bank, go to another bank and open a second passbook loan with a 12-month pay period. Then wait three weeks and go to a third bank and repeat the process with the loan from the second bank. Now, you have three loans at three different banks for a 12-month payment plan. Now start making payments with the loan you received from the last bank. After six months of on time payments, check your credit report to make sure the loans are being reported correctly. Congratulations, you have just established superior credit with three bank installment loans.

As you can see, using the three secured loan method to build credit could be very effective to your building or rebuilding efforts.  The key thing to remember in this technique is to always be on time with your monthly bills no matter what situation you are in at the present time. By doing this, you will be on your way to a good credit file. Now that you are empowered with a secret weapon, go out there and take your financial life back

 

 

 

 

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Mark Clayborne is a Certified Credit Consultant with ten years of experience assisting consumers with credit issues. For more powerful secrets on credit repair, debt settlement, stopping collectors, rebuilding your credit, and raising your score, please read the first chapter of The Credit Repair Book and get a Free Restore your Credit E-class at http://www.hiddencreditrepairsecrets.com

Buying a car a good way to rebuild my credit?

My credit score is 540 (it’s terrible). I was a victim of fraud via my ex-husband who abused a power of attorney I gave him during my deployment. A car dealership has a program where you put money down for a car, complete the payments in 18-months to help rebuild your credit. They report to the credit bureau every month and the payments are feasible for me. I think it is a good idea as a starting point to get my credit golden, again. Is this a good idea or can it backfire?

Serious answers only.

Answer
Sure it could backfire. There is the possibility that six months from now the car could need unforeseen repairs, your income could go away or be reduced, you or a dependent could get sick.

Do you need a car right now? If not, and this would stretch you at all, then you have to think long and hard about the risk.

Do you have any other accounts at all? If so, making your payments on them like clockwork will slowly build your credit rating, and you could be saving the money that you would otherwise be using for car payments.

I am 65 years old, and with one exception I have never bought a car on credit (paid that one off in under a year). Unless you live in a city with good public transit to get you to work (or school, or whatever is important in your life right now), don’t put yourself in a situation where the repo man can drive off with your car in the dead of night because you were late on a payment. That’s too big a risk to take. Not to mention such events would make your credit score worse, not better.

If you don’t have a car and absolutely must have one; if your income is guaranteed for the next 18 months; if you have health insurance, then maybe this is a good idea. Otherwise keep in mind there is risk along with the possible reward.

Good luck.

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