Q&A: What is a secured credit card? Can I get it if I have bad credit?

Comment for Q&A: What is a secured credit card? Can I get it if I have bad credit?

1. tincoatr // May 21st, 2012 at 10:44 am
   

   A secured credit card is a credit card where you give them money in advance equal to your credit limit. You can then use the credit card like normal because they already have the money in case you don’t pay. This is designed for people with bad or no credit to help them establish some good credit.

2. littlekitygrl // May 21st, 2012 at 11:03 am
   

   You can get a secured credit card with bad credit, these cards usually ask you to send in money first. This are really good to help you rebuild your credit. Just make sure you pay on time.

3. n p // May 21st, 2012 at 11:04 am
   

   Hi.
   This company will help you:
   http://1lo.info/1522/

4. Smoovy Loco // May 21st, 2012 at 11:25 am
   

   It would be nice if you could make it through life without ever having to use a credit card. The fact is that many businesses require credit cards, even if you plan to use cash for the purchase. Hotels, car rentals, and airlines are just a few of the places that credit cards are required.

   If you’ve never had credit or have a poor credit history, it might be difficult to get a regular credit card. In these situations, a secured credit card might be the only way to improve your credit standing.

   Secured credit cards are viable options, but before you get one, there are some questions you should have answered.

   What are the costs?
   Like many regular credit cards, secured credit cards have costs. Some of the most common costs include application fees, processing fees, and annual fees. Find out the fees for the secured credit card before applying. Stay away from cards with high fees that use most of your security deposit.
   How much is the deposit?
   Secured credit cards are “secured” with a deposit that’s held in an account and used when you default on your payments. Many secured credit cards have minimum and maximum deposit limits. Some secured cards place deposits in an interest-bearing account. Find out if your deposit will earn interest and if so, how much.

   In what situations is your deposit used?
   Some creditors only use the deposit in cases of severe delinquency, e.g. 5-6 months past due. Others use it for a single late payment. Knowing the situations that the creditor will draw from your deposit can help you be more disciplined, especially if you’re concerned about getting your full deposit back.
   Are there eligibility requirements?
   Income and age restrictions might apply to some secured credit cards. Even though you’re willing to put down a deposit for a credit limit, card companies still have requirements in place. Many secured credit card lenders require borrowers to have a checking or savings account with their bank before extending secured credit.
   What will your credit limit be?
   Your credit limit isn’t always the exact amount as your deposit. It can be some percentage of your deposit, making your credit limit less than the deposit.
   What is the APR?
   The APR, or annual percentage rate, is the interest rate applied to balances that you carry beyond the grace period. The higher the interest rate, the higher your finance charge will be when you carry a balance.
   Are timely payments reported to credit bureaus?
   If you want the credit card to help establish or re-establish credit, your payments must be reported to the major credit bureaus – Equifax, Experian, and TransUnion. Secured credit cards that don’t report to bureaus won’t help your credit rating. Make sure the card isn’t reported in a way that reveals it as being a secured card to prevent bias from future lenders.
   Can the card be converted to an unsecured credit card?
   The best secured credit cards allow you to convert to an unsecured after a period of timely payments. Unsecured cards often have lower fees (or no fees at all), a lower interest rate, and fewer restrictions.

   taken from: http://credit.about.com/od/usingcreditcards/bb/securedcard.htm

5. Sharing Mind // May 21st, 2012 at 12:11 pm
   

   if you have bad credit apply for one that are for bad credit. use that to build up your credit rating by pay the minimum monthly fee on time. use your card to buy things you regularly buy like gas, pay utilities bills, groceries etc. don’t miss the payment. after a year transfer the balance to a new credit card with 0% intro APR for 12 months period. continue to pay on time the minimum. when near the intro period transfer again to another card with 0% intro period. check out your credit report to see what effect it has on your credit rating. you will see positive result. so do that until your credit rating is high enough to apply for low APR credit card. hope that helps.

6. SMD // May 21st, 2012 at 12:13 pm
   

   You might want to try a “Guarenteed Approval Card”.. Look at http://preferred.ecreditdirectory.com/categories/guaranteed-approval for more information…