In an age when most credit cards are restricted to clients with an excellent credit record, a secured credit card is the most viable alternative to establish or re-establish credit. It is a critical option for individuals who either have no credit history or for those who are attempting to repair a damaged credit record.
Difference between Secured and Unsecured Credit Cards
A bad credit history secured card insists on a cash deposit from the cardholder. This deposit is fundamentally used as collateral for making purchases and for repaying the balance in the card. An unsecured credit card bypasses the need for collateral.
Read the Fine Print very Carefully
Applicants seeking a secured credit card should be extremely careful while reading the fine print. Such cards frequently charge fees for application, activation and sundry monthly services. In some cases a program fees and an annual fee may also be deducted. This effectively reduces the credit available for purchases.
Best Secured Card in the Market
The Public Savings Bank Secured Card is one of the most easily obtainable secured cards in this segment. It does not levy any annual or monthly fees. It also does not conduct any income or employment verifications and offers an additional grace period of 25 days.
A Low Interest Secured Credit Card
As with other credit cards, it is preferable to get a secured credit card with a low interest rate. Very few secured cards offer an introductory zero interest APR period. The Public Savings Bank Secured Cardalso scores in this area by providing a 6 month zero APR period for purchases.
Low APR Secured Credit Card
It is highly improbable to procure low interest rates on secured credit cards. This is especially true if such a card is being used to rebuild or establish credit. A patient online research into the interest rates of different card issuing organizations is the only viable solution. However this should not deter a card holder from shopping around. Orchard Bank Secured Card by offering a low purchase APR of 7.90% and a cash back bonus of $35 on all purchases made in the first year makes it very easy for consumers to maintain their card and raise their credit score.
Role of Credit Card Bureaus
It is important to note that not all secured credit cards report their transactions to credit bureaus. This is detrimental to customers who are using this card to revamp a checkered credit history and defeats the very purpose of this type of card. Fortunately both theNew Millennium Bank Secured Platinum Visa or MasterCard and the Public Savings Bank Secured Card regularly report to all three credit bureaus.
Best Secured Credit Card from MasterCard
An additional advantage of the New Millennium Bank Secured Platinum Visa or MasterCard is the high introductory savings rate. Furthermore, this card offers a bonus $3000 credit with the My Computer Club. The Secured Black Diamond Visa or MasterCard from the same bank has a credit limit of up to $10,000. It is accessible from over 740,000 ATMs.
The simplest way to ascertain a suitable credit card is to search online. Most banks disclose the regular APR of their cards on their official websites. Another alternative is the credit union which provides lower interest rates. In certain cases, the union also eliminates the annual fee.
Rahul Dutta Gupta - Rahul Dutta Gupta graduated with High Honors in English Literature from St. Stephens College, Delhi University and then pursued a dual ...
