Heard about secured credit cards? Although in most cases, chances are, you will be up and running once again because this type of credit card will help you rebuild a damaged or blemished credit report. But unlike any other card you’ll need some cash to get started.
By definition, secured credit cards are just like your regular credit card. In fact, it is mostly either a Visa or MasterCard used for this particular scheme. The only difference though is that it requires you to deposit an set amount of cash using either a checking or savings account. This will serve as the assurance or as security before you acquire the card.
Sometimes compared to a debit card, still, this has a difference. The card you will use here will need you to make a loan only if you have sufficient funds in you account as mentioned above.
In a debit card, you won’t the amount you spend will automatically deducted in your accounts. With this set up, you can be sure that your spending power will depend on your funds. It serves as a tool to help you regain or re-establishing your credit.
As a reminder though, the secured credit card incurs a higher interest rate than a regular credit card.
December 4th, 2009 at 5:09 pm
fast credit repair…
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