Considering A Secured Credit Card

If you are looking to either build up good credit or develop better spending habits there are many options out there for you to consider. One of them is a secured credit card.

What Is It?

Secured credit cards are a foolproof way to build up credit because you cannot spend outside of your means no matter how hard you try.

A secured card is one where you deposit money into the account equal to your limit and borrow against that. If you pay $500 to the card you now have $500 to spend using the card. Once you hit the deposit amount you cannot use the card until you add more money to it. It functions similar to loading up a cash card but counts towards your credit, which is why it is so useful.

This kind of card is great for people who have no or very bad credit and are trying to build up their credit score and establish healthy financial habits. Because you pay before you spend there is significantly less risk to the creditor so they will do business with anyone regardless of their history.

After a while you will see your credit score increase and will have many more options for credit cards and loans because you have established a more positive credit history. Many people will switch to a regular credit card after they have seen a boost in their credit score because they now qualify for a card with a better interest rate and better terms.

Why Use A Secured Card?

If you have a history of poor financial decisions a secured card is a great way to get yourself on track and get used to living within your means. Because you can’t borrow more than you deposit you will be more aware of what you are spending and will be better able to create and stay on a budget.

Another plus is that you do not face crazy fees and interest rates with a secured credit card and will not rack up tons of debt if your spending gets off track.

Fixing your credit can be as simple as making a call! We're here to help you rebuild and understand your credit. Give us a call to get started or learn more about what we can do for you 1-800-431-0449.