subject: Tips For Signing Up For A Secured Credit Card [print this page] Secured credit cards is ideal for those with bad credit and who never had credit before. Before signing up for your own secured card, consider the following pointers:
- Check your lifestyle and your need for credit. First of all, you have to know your spending style and how you will be handling your monthly payments. A secured credit card can be used for rebuilding bad credit but only if you can keep up with your payments.
To make sure that you can pay off your debts before the due date, do not spend more than what your budget permits.
- Understand the terms and conditions of the card company/issuer. You need to read and understand the fine print in order to avoid unpleasant surprises later on. Check the credit limit, possible charges, grace period, interest rate, and other details of the offer.
- Check the period when to qualify for an unsecured card. Secured credit card holders can qualify for the unsecured once you are able to make your payments on time. After a year of consistent payments, ask your secured credit card issuer if you can upgrade your account to a non-secured account.
- Do a comparison for the different types of cards to find the best one. There are lots of card companies that offer secured credit cards, and each of them has their own set of rules. Compare all cards carefully in order to find the one that fits for your needs.
- Prepare to submit cash deposit. You can get approved for a secured credit card regardless of your credit rating. However, you will be required to submit cash deposit. If you do not plan to use a credit card frequently, you may choose a secured card that requires a lower security deposit.
- Confirm if they submit report to the main credit bureaus. This is vital if you are trying to build your own credit score. If your chosen card company does not report to the major credit bureaus, you will not be able to improve your credit score.
- Collect more information. Every 6th day of the month, the Federal Reserve produces a survey of card terms. You can also find different websites online where you can compare offers. You can also check out finance forums. If your friends or relatives are card holders, ask them for possible recommendations.
- Use credit card comparison sites. To make your search easier, you can use comparison websites. Here you can read reviews and view various credit cards arranged in categories. Look for any list of available secured credit cards in the market.
However, remember that these sites only highlight the best and weakest features about each card. Once you have narrowed down your choices, be ready to do further investigation by visiting the official site of the credit card company.
- These are important points can help you choosing a secured credit card. Remember, using a secured credit card can be your stepping stone towards good credit. Use it well and start by making the right choice.
Copyright (c) 2009 Tara Tiemann
by: Tara Tiemann
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