Are you wondering what kind of credit cards you can get in a credit
market that seems to be shrinking every day? Do you have bad credit or no credit
history at all, but need the convenience and security of a credit card? Well, if
you are looking for a credit card option, but you aren t sure where to turn
next, check out local lending options for secured credit cards. Secured credit
cards are a form of credit that is backed by money you deposit first into a
special type of savings account. This money you deposit is then used to secure
the credit risk the lending organization is taking by providing you the
card.
The credit given per dollar deposited can vary widely, but typically ratios fall between 1:1 or 1:2. This means for each dollar you deposit, your card gets between fifty cents to a dollar of credit. Most people find their credit cards easier to manage with the secured credit system, as well; the deposit attached to the credit card tends to give people a better sense of ownership of the card and their spending habits tied to it. The fees and service charges tied to these cards are not the best, but nevertheless secured credit cards are an excellent choice for someone trying to rebuild their credit after a series of severe delinquencies or a bankruptcy, or even for someone with no credit history at all.
Nothing beats the collateral of cash to loosen up a line of credit for an individual. Don t give up hope; just canvass as many local lenders of credit as you can (savings and loan organizations, credit unions, banks), and soon enough you ll find one willing to work with you on a secured credit card. The big three (Visa, American Express, and Mastercard) also have avenues for secured credit cards, but if your unclear or skeptical as to whether you can apply for such a card, ask debt-free for a clear, unbiased answer!
The credit given per dollar deposited can vary widely, but typically ratios fall between 1:1 or 1:2. This means for each dollar you deposit, your card gets between fifty cents to a dollar of credit. Most people find their credit cards easier to manage with the secured credit system, as well; the deposit attached to the credit card tends to give people a better sense of ownership of the card and their spending habits tied to it. The fees and service charges tied to these cards are not the best, but nevertheless secured credit cards are an excellent choice for someone trying to rebuild their credit after a series of severe delinquencies or a bankruptcy, or even for someone with no credit history at all.
Nothing beats the collateral of cash to loosen up a line of credit for an individual. Don t give up hope; just canvass as many local lenders of credit as you can (savings and loan organizations, credit unions, banks), and soon enough you ll find one willing to work with you on a secured credit card. The big three (Visa, American Express, and Mastercard) also have avenues for secured credit cards, but if your unclear or skeptical as to whether you can apply for such a card, ask debt-free for a clear, unbiased answer!
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