improve one’s credit report can be a challenge. Applying for new credit may prove to be difficult as many lenders prefer clients with good to excellent credit. However, thanks to bad credit credit cards and secured credit cards, getting approved for a new credit card even with a poor credit score is now made possible.
What are secured credit cards?. As the name suggest, these credit cards are extended to people with no credit history or poor credit history. The applicant is simply required to submit a security deposit which is usually equal to the credit limit of the card. This lowers the risk for the lenders. Thus, anyone- regardless of the status of his credit report can apply for a secured credit card and get approved without hassle. In fact, secured credit cards can be used as tools in rebuilding or improving damaged credit.
How much is the security deposit that you need to submit? The amount depends on the requirement of the credit card company. Most credit cards require a deposit ranging from a minimum of $200 to $500 to $1,000. In most cases, the amount of the security deposit also determines the amount of credit limit allowed to the card holder.
How can you improve your damaged credit history with the help of secured credit cards? By getting a secured card that reports to the three major credit bureaus. By using your secured credit card and timely keeping up with your credit cards payments, these will be reported to the credit reporting agencies. After a few months, you should be able to see an improvement in the status of your credit.
Nevertheless, it’s important to remember that not all secured credit cards report to the credit bureaus so you should make sure that your chosen credit card company extends this particular feature. A good secured credit card should also offer you an automatic upgrade to an unsecured credit card account after you’ve proven your credibility as a card holder. Typically, you should be able to get a regular credit card after a year so you can enjoy a higher credit limit and more privileges as well.
There are a number of secured credit cards available in the market today. Of course, the first thing you’ll probably check on is the interest rate offered. But don’t forget that comparing the interest rate of a credit card alone won’t give you an accurate evaluation. Aside from the interest rate, take a good look at the other fees and charges associated with the credit card, particularly if the card offers an unbelievably low APR.
Just like in applying for a regular or unsecured credit card, take your time in weighing your options. Once you’ve narrowed down your choices, make it a point to read the entire Terms and Conditions associated with each of your prospective cards. Since most of the ads only advertise the best features of the card, reading the Agreement page will enable you to see the real costs and conditions of the credit card.
Lastly, use your secured credit card with the primary goal to rebuild your credit. Charge only what you can afford to pay in full before your due date, not only to avoid the additional interest rate and late fees, but more importantly, to start repairing your credit history.
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Secured Credit Cards Help People Get Back to Life
3 Things You Need to Know About Secured Credit Cards
le think they know everything there is to know about secured credit cards. You send in a deposit, you get a credit card. End of story, right? Not necessarily. Before you go jumping into the secured credit card world, there are a few things you should know.
You’re Still Going to Pay
Think you’re entitled to a lower interest rate just because you’re providing a security deposit? If rates of five or six percent are dancing through your head, you’d better think twice. The interest rates of secured credit cards are comparable to unsecured cards, and how much you pay is going to depend on how damaged your credit is.
In fact, some secured credit cards impose processing charges and annual fees in addition to higher interest rates. Before applying for any secured card, compare the rates carefully and know exactly what you’ll be charged. Anything in excess of 20 percent interest or a $100 annual fee is generally too much.
Good Behavior Does Pay
Think a secured credit card is just a means to an end? You use it for six to twelve months and then get rid of it? Some of these cards are designed to be that way, but some secured credit cards grow with you.
If you’re in need of a secured card, look for one that offers an increasing credit limit with good payment history, or, better yet, one that transitions into an unsecured card over time. Because the length of your creditor relationships has an impact on your credit rating, it’s always good to look for cards that you can keep for the long haul.
They’re Not Like Prepaid Cards
If you’re like many who have considered foregoing a secured card and opting for a prepaid credit card because the initial investment is less, you need to reconsider. Secured credit cards report to the credit bureaus and work to improve your credit rating. Prepaid credit cards do not. In fact, some of the places that accept secured cards will not accept prepaid cards, such as car rental facilities and hotels.
The world of credit cards can be confusing, and there are quite a few preconceived notions regarding the many different types of cards out there. Don’t let the rumors you’ve heard or the misinformation you’ve been given about secured credit cards lead you astray from making a sound decision as to which card is best for you.
Does a Chase Secured Credit Card Make Sense for You?
If you don’t yet have a credit card, a Chase secured credit card may be the answer to your plastic woes. After all, there are many valid reasons why an unsecured credit card may not be in your immediate future. A Chase secured card can be the perfect alternative. Wondering if a Chase secured credit card is right for you? These tips will help you figure it out.
Don’t Qualify For a Secured Card?
One of the surest signs that a Chase secured card is right for you is if you don’t qualify for unsecured credit. Whether it’s unpaid medical bills or a case of mistaken identity, it can take months (or even years) to repair your credit. Why go cardless in the meantime? A chase secured card can get you over the hurdles to come.
Want to Rebuild Credit?
If you don’t have credit or need to rebuild it, a Chase secured credit card can be the perfect answer. Unlike prepaid credit cards, a Chase secured credit card is reported to the credit bureaus. This means that your Chase secured card activity can help you qualify for an unsecured credit card in the future.
Need To Get Into The Credit Card Swing?
If you need to get into the credit card swing of things, a Chase secured credit card is perfect for you. It works just like an unsecured card. You make purchases (up to your credit limit) and pay the bill when it comes in.
The only difference between a Chase secured credit card and traditional unsecured credit cards is that a secured card is secured by a savings account whereas unsecured cards aren’t. That makes this card perfect for learning the credit card ropes.
Do You Have The Credit Card Blues?
Perhaps the most important factor in determining whether or not you need a Chase secured credit card is if you have the credit card blues. What are the credit card blues? Do you find yourself facing frustration every time you have to rent a car or book a hotel room? Is it due to a lack of a credit card? If so, you need a Chase secured credit card.
If you find yourself in need of a credit card and an unsecured card just isn’t an option right now, a Chase secured credit card could be just what the doctor ordered. Get the credit you need now and build the credit rating you want for the future. In less than a year, a Chase secured credit card could open the doors to a world of unsecured credit.
Credit Cards – Should You Get A Student Credit Card Or A Secured Credit Card?
If you’re looking for the right credit card, you’ve no doubt noticed that there’s a dictionary’s worth of terminology involving them. Two terms that cause a lot of confusion for young people are “student credit cards” and “secure credit cards”. What are they? Is there any difference between the two? Which one is best for your budget and lifestyle? Here’s a quick rundown:
A student credit card is just that: a credit card aimed at students. Basically, student credit cards are no different than regular ones, except that they’re marketed specifically to students, sometimes “branded” with cool logos and such. HOWEVER, be careful when choosing a student credit card because some of them carry a high interest rate and fees, which could be a problem if you’re living on a tight budget.
At the same time, some experts recommend that students who don’t yet have a credit history should start out with a card that offers an APR (Annual Percentage Rate) of about 16 to 17 percent or lower, although many credit cards offer special introductory rates such as 0 percent for the first 6 to 12 months. Just remember to stay away from cards that offer an APR of 20 percent or higher.
On the other hand, secured credit cards require a deposit from the account holder as a form of collateral. This deposit is put into a savings account, and the card’s limit usually equals the deposit amount. In this sense, a secured card is somewhat similar to a debit card. But again, some secured cards can have high annual fees, and can come with higher interest rates.
The benefit of using a secured card is that you don’t have to worry about owing money that you can’t afford, since when you make purchases, you’re only withdrawing from money you’ve already deposited in the account. As a result, you get the benefit of building your credit like you would with a regular card, but without the potential negatives. At the same time, you also have to be consistent in paying any monthly charges on time. Otherwise, the balance on your security deposit could end up being used to pay any outstanding interest charges, which could be a negative strike against your credit.
In the end, both student and secured credit cards have pros and cons. It may seem like a pain, but research pays off. Do your homework while looking around for the right card and you can reap rewards in the form of lower interest rates and annual fees.
Posted in Secured credit cards 
Tags: Debit Card, Savings Account, Student Credit Cards 
No Comments »The Lowdown on the Orchard Bank Secured Credit Card
When your credit history is proving to be a hindrance to your financial well-being, perhaps it is time for you to get a secured credit card. One of the cards worth your consideration would be the Orchard Bank MasterCard secured card issued by the HSBC Bank of Nevada.
This card targets customers with poor or limited credit ratings, and aids them towards improving their credit histories. A secured credit card works by requiring the card holder to deposit cash into their credit card account prior to utilization. This way, this credit card prevents its card owners from incurring more debt whilst helping them re-establish their credit history.
An additional advantage unique to this card is that the deposits in the account are paid interests by the bank. In the effort to establish a healthy credit rating, customers must bear in mind that late payments must be avoided, and they have to be aware of the current annual percentage rate for the card as the APR of the Orchard Bank Secured Credit card is based on a variable rate. Although, the regular rate now stands at 15.90%, the actual rate is dependent on the Prime Rate. APRs for cash advances are higher than most cards at 23.40%, with a minimum rate of 19.99%.
Interestingly enough, the annual fees for the Orchard Bank Secured Credit Card is lower than other most unsecured credit cards. Balances above $1000 will only incur fees of $35 whilst card holders who have charged more than their credit limits will only be charged only $29. Also, there are periodic reviews of the credit limit for each account, so regular payments will enable the card holder to obtain higher credit limits and at the same time improving their credit history.
Finally, the Orchard Bank secured credit card also offers a lot of perks not evident in other competing credit cards. These would include Internet services, emergency replacements for stolen cards as well as numerous protection services against fraud and identity theft.
Posted in Secured credit cards Tags: Credit Histories, Emergency Replacements, Secured Card No Comments »
