|Posted by Percy A Lowe on March 22, 2013 at 7:00 AM|
Secured loans require you to own a valuable item that you can use to place against the loan. Throughout your loan period a 3rd party company will hold your asset, and if you fail to repay the lending vendor can take the item in to their possession. Due to the high amounts you are usually required to take out to qualify for a loan, the item you deposit is typically a house, car or object of similar value.
The great thing about this aspect of secured credit cards is that technically if you end up in further financial trouble and really can't afford to pay off your balance, you have a backup plan which can quickly and easily wipe the debt of your shoulders. This does mean losing the valuable asset you first used as a deposit, however you will have known and understood that this could be the case from the start of your application.
So, having a deposit help keep an negative out come on your credit report. hen you can stop all drafts until you ready to start over again. This way you are in total control and not held to any obligations some secured credit cards hold you too. The key here is to position your self in such away you are able to maintain an high credit score like close to 700 are above 700.
Categories: Credit Education and Restoration