Credit Limits on Your Secured Card
A credit limit on a credit card is the amount the card issuer
will allow you to spend. This amount includes all transactions
including accumulated finance charges and fees. With a secured
card this amount is equal to the amount you have deposited
in a savings account or CD to guarantee payment.
Some companies will give you a credit line equal to 100% of
the amount on deposit; however others might not allow you
the full amount so remember to read the small print.
All your fees and charges will be part of your first bill
and should be paid off with your first payment. Regular use
of your credit cards will help you build or repair your credit.
It is important that you keep positive credit habits. The
most important one is pay your card balance in fell each month.
Increasing credit limits
If you prove yourself to the credit card company with 6-12
months of good credit habits they might consider raising your
credit limit or even giving you an unsecured card. Some do
this automatically, others you have to contact.