How to Compare Secured Credit Cards
Comparing your options of Secured Credit Cards is
the only way to know that your are getting the best
deal in the market. Secured Credit Cards and Secured
Loans are ideal for individual looking to improve their
FICO score. Finding a Secured Credit Card that fits
your individual needs is the key to credit building
Be informed about secured credit cards. Secured credit
cards are much like debit cards in that there is a hard
balance attached to them. This means that in order to
receive a $300 limit you must physically put $300 into
your secured credit card account. This hard balance
limits the risk to the bank.
Find banks that issue secured credit cards. Start by
visiting websites like bankrate.com and creditcard.com
to find lists of credit unions and banking institutions
that offer no interest and secured credit cards. If
that search doesn't pan out, try asking your local credit
union or bank if they offer or can recommend secured
credit accounts. Comparing secured credit card accounts
might take some research because this type of account
is not universal.
Know your fees and charges. All credit card companies
have fees associated with their accounts. It is standard
practice to charge an annual fee in addition to APR.
Find a card with both a low APR and annual fee. While
your comparing accounts look for cards that do not charge
an application fee. Application fees are not overly
commonplace in secured credit card accounts so finding
a card without this fee should be relatively easy.
Many people with poor credit are targeted and exploited
by companies promising "guaranteed" credit
cards for a steep fee. Some of these companies will
even take money and issue only applications for secured
credit cards at third party institutions. Work instead
directly with reputable banking institutions to directly
compare secured credit cards.
Once you have established your account make sure that
your bank has reported the account to credit bureaus.
Your credit card account must be tracked by a major
credit bureau in order for your credit score to improve.
Ask your bank if they will report your account as a
credit account rather than a secured credit card to
build credit quicker.
After a year of successful credit management under the
safety of a secured credit card, try applying for an
unsecured card with the same bank or another lending
institution. Don't be discouraged if your application
is not accepted. Gaining a good credit score takes time
and proper account management, both of which are beginning
to work in your favor.