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 success.

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.



 
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