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The reason for Secured Credit Cards Part 3

Posted by Percy A Lowe on March 23, 2013 at 7:00 AM

The balance of a normal card is usually based on your income or your credit history and sometimes it can be hard to apply for a balance that you really need. Another great thing about secured cards is that we can have more of a say on what our cards balance is. The item we initially use, such as a car, house, jewellery or cash deposit is used to roughly calculate a suitable credit balance for us personally. This means if you use a car valued at £1500 as your deposit, you balance will either be £1500 or a slightly lower amount.

Much like any credit card there are various charges that can be applied and you should be fully aware of these before you sign for or start using your card. Standard fees you will find appearing on your bill are things like monthly interest, with a secured card you may expect a slightly smaller amount of interest and the vendor already has some guaranty that you will pay back your credit. Annual fees are charged on most of these cards and secured cards unfortunately follow the same principle, you will be charges a set amount just for having your credit card each year.

Just, like any other credit card you need to read the fine print. Most secured credit cards on the site is going to have a privacy statement. Please find that link and read everything. Also, look for the toll free number so you can call and ask question to the card holder as well. Write down what you don't know to get answers to those questions. No, question is a dumb question when it is concerning your money.

 

Categories: Credit Education and Restoration

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