Secured Credit Cards – the Basic Facts

Credit card is a part and parcel of modern life. The credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. The secured credit card is however, not without its disadvantages, the main one being high interest rates charged on it. How would you rate your capacity to purchase a home or the car you want or the loan you simply need? How significant is it for you to have a good credit rating? In order to establish and spruce up your credit score, the best possible option is to have a secured credit card. A secured credit card is in effect the opportunity to regain a sound financial position. Due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. A credit card is often denied to you when you do not have a credit history. This is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. It can also occur in the case of divorced people who have never had a credit card in their name. Secured credit cards [http://www.creditrunner.com/secured-credit-card-offers] thus provide the best means for anyone to establish a credit history. The secured credit card by virtue of being secured by your own money allows the issuer to feel safe, ensuring their money back in case you default. Since the issuer is also holding your money, they persuade you to make your payments regularly instead of losing your security deposit on the secured credit card. Secured Credit Card – A credit card with a security deposit Very often when you rent an apartment, the landlord will ask you to deposit an amount equivalent to a month’s rent into a special account. This amount acts as security and is not used till you move out. When you move, this money along with interest is returned to you. You will not owe the landlord any money if you leave the apartment without any damages. The same rule applies to the secured credit card. In a secured credit card you have to deposit an amount as security equivalent to 50-150% of your credit limit in a special account with the credit card issuer. The credit card issuing company will provide you with a secured credit card which is used like a regular credit card. The only difference being that only you and your credit card issuer know that the secured credit card has attached to it a security deposit. Provided you use your secured credit card wisely, the security deposit will not be used. This means that the secured credit card will be used to make reasonably priced purchases and the monthly bills will be paid regularly and fully as far as possible. To increase the credit available to you on your secured credit card, you can either increase your security deposit or get as many secured credit cards as possible. The credit card issuer will soon increase your credit limit from 50% of your deposit to anywhere between 75% and 100%. The interest rates on secured credit cards are usually quite high. In the even that you have been rejected for credit by some companies you will be thought of as a significant credit risk. The issuing companies are taking a huge risk in lending you money through secured credit cards, and these interest rates are based on these risks. A secured credit card is not suitable for people with a solid and established credit rating as they can avail of credit cards with lower rates, rewards and other benefits. A secured credit card is for people who have had a bad credit or no credit to start with and need to mend their credit scores through a responsible show of credit card handling.

Find The Best Credit Card Type

There are a variety of credit card types, each claiming to offer you the best possible deal. Finding the programs and incentives that works best for you is key to maintaining a good credit card history.

Each type of credit card offer different benefits. Some are geared toward the individual consumer, while others are set up to work for small businesses. To find the type of card that best fits your needs, let’s review some of the options.

Business Cards

A business credit card offers the business owner an opportunity to keep business and personal expenses separate. The card may offer special business rewards and saving opportunities that go above and beyond what the individual card owner has. Since money management is essential for running a business successfully, this card may offer an expense management service that helps track outgoing money. You can obtain additional cards for employees who may need them for travel expenses and such. You may also have a higher credit limit than you normally would on an individual card.

Student Cards

Many credit card companies will issue student cards with lower credit limits and fewer incentives, helping new card users to keep their spending in check. However, note that many college students now graduate with credit balances averaging from $3,000 to $7,000. With high interest rates, these debts can be a real problem to pay off.

Debit Cards

Prepaid debit cards are 1 type of credit card that has grown significantly in recent years. Although it works like a traditional credit card when making a purchase, that is where the similarity ends. With a prepaid debit card, you actually set the credit limit yourself by depositing money into the debit card’s account. The amount you deposit determines the credit limit on that card. This is a great way to have the convenience of a credit card without the possibility of charging more than you can afford to pay off.

Cards for Bad Credit

Even with bad credit, it is possible to obtain a credit card. These cards come with some restrictions not typically found on other types of cards. Your credit limit will be lower and your interest rate higher. Some may require you to have a secured card, meaning you have to maintain a savings or some other type of account that will cover the expenses on the credit card. Once you have established that you will be responsible in your credit handling, some, if not all, of your restrictions may be lifted.

Cash Back Cards

Many cards will now offer you cash-back incentives for using their cards. Depending on how much your balance is, and how often you use the card, you can earn cash back for your purchases. Some companies offer 1% off your balance while others, like Sears, will offer you cash off purchases made in their store. Either way, if you are planning on using a card, finding one that will offer you a cash incentive is a smart choice.

Low-Interest Cards

One of the more recent additions to the credit card world is the low-interest credit card. These cards offer a significantly lower interest rate than most of the older cards you may already have. As balance-transfer cards, most of them offer you the option of transferring a balance from a higher interest rate card and, for a specified period of time, your transferred balance will be at either 0% interest or something quite low. This can save you a fair amount of money if your plan is to pay it off.

Reward and Incentive Cards

Since credit cards have become such a lucrative business, many corporations have jumped on the bandwagon. Even airlines now offer credit cards that come with a certain amount of frequent flyer miles attached, depending on your balance and purchases. If you do a fair amount of traveling, this can be a real bonus. Along these same lines, reward credit cards are growing in popularity. Competition is stiff, and many card companies are now offering different reward or incentive options for using their cards. Once you accumulate enough points, the rewards pour in. These can be anything from travel insurance to small appliances. If you use a card regularly, finding one with a reward program can really pay off.

Instant Approval Cards

Another form of credit card is the instant approval card. Once you fill out the application, a quick background check will be done and you will have your approval almost immediately. Regular cards can take up to 2 weeks to process. Although you can get instant approval, this does not always mean you can get instant credit. Some companies will supply you with a temporary credit card number and allow you to begin making purchases immediately, while others will not, due to an increase in credit card fraud potential.

Protect Your Credit

Since there are so many options in choosing a credit card, you should do a little research before you apply. Decide what type of card best fits your needs and apply for that one. Don’t go overboard, though. Applying for too many cards will negatively affect your credit rating.

And, above all, once you get your new credit card, use it responsibly.

How To Deal With Credit Cards – A Definitive Guideline

Various types of credit cards are available in the market. They have evolved from their early days into flexible financial tools for most types of spenders and savers. But with so many types of credit cards on offer it can be somewhat overwhelming. Few examples are Airline credit card, Balance transfer credit card, cash rebate credit cards etc.

How to choose the Right Card?
There are literally tens of hundreds of credit cards on offer in the USA, and the list is growing daily. So, which is the best on offer? It very much depends on how each person plans to use their card. The answer lies in asking one simple question; “What do I want to use a credit card for?”
Applying For Credit Cards Online
This option is simple and most convenient. More and more people are applying for credit cards online. Along with online auctions, and shopping, signing up for credit cards, loans and insurance has been one of the fastest growing commercial activities on the net.
How to decide which credit card is suitable for me?
First decide what YOU are looking for then search the web. There are some bigname credit cards that might charge the earth for you to have the privilege of carrying their name in your wallet. Most of them are not worth the extra fees. But what makes a card worth its salt? And what steps should you take in choosing the right card?
Rate Tart Are You One?
Rate tarts are the smart shoppers of the credit card world. They play the system to avoid paying interest on purchases, borrow money for free, and even make money on that borrowed money! The idea is simple. DO NOT leave any balance in your credit card and pay in FULL before the next billing cycle.
Quick Balance Transfer
Balance transfers allow card holders to transfer the money they owe to their existing credit card to another, usually at a special rate of interest. The new credit card company pays off the old credit card debt and transfers it to the new card.
0% Balance Transfers What’s The Buzz?
Balance transfers can be a good way of managing large sums of debt. The idea is simple. You have a large debt, loan, store card balance or credit card balance
Cash Back Credit Card
It seems almost too good to be true; a credit card company giving back money to the user just for spending it in the first place! However, as with all good deals, there are terms and conditions.
The Value Of Having Branded USA Credit Card Loyalty Programs
Anyone who has taken even the briefest of looks at the USA credit card industry will immediately notice that there are well over a thousand credit card providers. However, even in this hugely competitive industry, there are still only two main types of card available – the Visa card and the MasterCard.
Secured or PrePaid Credit Cards
So you need a credit card for emergencies, peace of mind, or for your teenage child but aren’t willing to go into debt for it? The answer might just be a secured or prepaid credit card.
Airmile Credit Cards
These days most major USA credit card providers offer a vast array of reward programs to try and entice potential new customers to apply for a card. Since the inception of reward packages, one of the most popular packages that applicants go for is airmile credit cards.
Business Credit Cards
If you are either the owner or Chief Financial Officer (CFO) of a business and do not have business credit cards, then the following 10 reasons might make you want to rethink your business credit card strategy.
How To Manage Your Store Card
Many major outlets offer store cards. These provide an easy way for consumers to defer payment for purchases. Store cards are promoted over public address systems in shops and by shop assistants at checkouts. So it’s no surprise that there are millions of store cards accounts in the USA.
Identity Theft
Identity theft is a major issue in the USA, and with good reason. It has been estimated that it can take up to sixty hours of work to recover a stolen identity, and in the worst cases, cost up to thousands of dollars to put right. But what can be dome to prevent this?
Payment Protection Cover For Your Credit Card Is It Worth The Cost?
Payment protection cover states quite clearly what it is but what are the ins and outs of the policy and its worth considering taking out payment protection cover on your credit card.
Credit Card Charges
Credit cards appear to have only one cost to a user – the interest charged on purchases, but there are a whole raft of hidden charges just lurking below the surface. So, some cards offer an annual payment option in return for certain benefits. What is the best option, and in what circumstance
Smashing The Credit Rating Myths
It used to be said that there were two certainties in life – death and taxes. Today you can add a third – credit. Today, it is almost certain that at some point during your life you are going to need to apply for credit. This credit may be either be in the form of a credit card, charge card, hire purchase, personal loan, home loan, etc.
Credit Building Tactics
Much is written about credit ratings, the score against an individual’s name, that rates their eligibility for credit.
Credit Reports
Every time a customer applies for a financial product such as a credit card, the credit company will consult that customer’s credit file. This file records all their financial activity in terms of credit applications and banking activity.
Credit Card Options For People With Bad Credit
There are many items that you can only pay for with a credit card. If you want to book a holiday on the Internet, a credit card is a secure way to pay. And if you want to hire a car when you get to your destination or booking a hotel room, a credit card is your only option.
Do You Need To Have More Than One Credit Card?
Deciding whether or not to have more than 1 USA credit card can be a difficult decision to make. On the one hand, you want to keep a careful control on your personal finances and having numerous creditors makes this difficult. On the other hand, it can be convenient to have more than one credit card, for example in an emergency. So, you should have more than 1 credit card.
Credit Card Disadvantages
Credit cards are everywhere; figures show that the average card user has over 4 credit cards in their wallet, and there are more cards always in circulation!
Common Credit Card Mistakes
With credit cards now outnumbering people in the USA you would be right to assume that not everyone in this country uses their credit cards either correctly or wisely. But what are the most common mistakes that credit card holders make when using their credit cards?
Are PreApproved USA Credit Cards A Scam?
Appropriately know as junk mail, every now and then you may find a nice glossy letter on your doormat informing you that you have just been ‘preapproved’ a USA credit card. With your pulse racing, you start to believe then hype of what a wonderful customer you are and how much your custom is valued. Hold on tiger – you may well be falling for one of the biggest credit card scams going!
Visa or Mastercard?
The two main credit card types have battled it out since the mid 1960s, but the credit card revolution was started in earnest by American Express, in 1958. Soon, their card was the choice to pay at hotels, airlines and restaurants.