Secured Credit Card Articles

The Island Approach To Credit Card Use

2011-07-19T07:25:00.000-07:00

About 25% of American consumers had bad credit as of April 2010, according to the credit-scoring agency FICO. As of March 2011, Americans were also revolving over $796 billion in debt - almost all of which was credit card debt - reports the Federal Reserve. Clearly people are having a difficult time managing their personal finances, and judging by the fact that the National Foundation for Credit Counseling's 2011 Financial Literacy Survey found that 28% of American consumers admit to not always paying their bills on time, 56% don't have budgets and 22% don't even have a good idea how much they spend on housing, food and entertainment, the Great Recession isn't all to blame. People therefore need to change how they approach spending. They need financial discipline, clarity and most importantly a way to lower the cost of debt. When it comes to credit card use, one strategy that promotes each of these things is known as the Island Approach.

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5 unintended consequences of the Credit CARD Act

2011-06-02T22:43:00.000-07:00

Whether you loved the idea of the Credit CARD Act of 2009 (full disclosure: I'm a fan), or you thought it was yet another overreaching law, with the two-year anniversary just behind us (it was May 22), it's become apparent to industry and personal finance experts that there have been unintended consequences to the passage of that legislation.

But as you'll see, some of these consequences haven't necessarily been all bad.
Higher interest rates.

Interest rates rose across the board for all types of revolving credit cards in the months leading up to the passage of the Credit CARD Act, and have remained at those elevated levels ever since. Of course, it's really not possible to know if credit card interest rates would have climbed anyway.

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Secured Credit Cards Explained

2010-12-17T00:31:00.000-08:00

Most people face two problems when deciding whether or not to get a Secured Credit Card are first, not knowing how to choose one, and two, getting the money to secure a credit card. We'll talk about both of those here.

A lot of people believe that it will be expensive to get a secured credit card, but the truth is you can find secured credit cards that have a secured amount as low as two or three hundred dollars. Keep in mind, that when you receive the card you'll be able to use it right away, so even if you can't afford to spend $300, and you want to use it for expenses, you can do that, after the card arrives. Just remember, to pay it off at the end of the month if you use it to pay your bills.

How the New Credit Card Law Affects You

2010-08-24T00:38:00.000-07:00

Laws are created to protect people as well as their interest. Through laws, policies and even simple rules and regulations, we are able to recognize our rights and privileges. We gain a feeling of security especially because we know that the government looks after our welfare.

One of the best examples of rules created to protect the interest of consumers is the new Credit Card Act. What are the provisions of this federal law? How does it influence the lives of credit consumers? And how does it protect the welfare of credit cardholders? To know the answers to these questions, we encourage you to read the succeeding paragraphs of this short article.

What is the New Credit Card Act?

The New Credit Card Act, more formally known as the New Credit Card Accountability, Responsibility , and Disclosure (CARD) Act was implemented on August 20, 2009. This law gives credit cardholders the special privilege of declining drastic changes that card issuers intend to impose on their credit card programs. Why is this important?

* secured credit cards

Secured Credit Cards With No Annual Fee?

2010-08-03T12:20:00.000-07:00

Hunting for a secured credit card is only hard if you make it that way. If you have already done the search for one, you're going to find that many of them have fees. The fees are going to vary, depending on the bank that you're going to apply with.

What kind of fees am I going to see?

The application fee: Some banks want to get everything out of you. This is where they will charge you just to process your application.
Monthly fees: You will get charged each month that you use your card.
Annual fee: You're going to be charged each year to use the card, no matter how often that you use it. As long as it's active, you're going to have to pay it.
Misc fees: You're going to have your typical fees such as your over the limit fees and more. You're going to have to look at the application to get more information.

Secured Credit Cards - the Basic Facts

2010-07-29T00:23:00.000-07:00

Credit card is a part and parcel of modern life. The credit card offers us the ease and simplicity to spend money without carrying cash, is versatile and handy to use and provides us the means to establish and recreate our credit rating. The secured credit cards are however, not without its disadvantages, the main one being high interest rates charged on it.

How would you rate your capacity to purchase a home or the car you want or the loan you simply need? How significant is it for you to have a good credit rating? In order to establish and spruce up your credit score, the best possible option is to have a secured credit card.

A secured credit card for bad credit is in effect the opportunity to regain a sound financial position.

Due to the easy accessibility of credit reports through well-established credit bureaus today, credit issuers rely increasingly on these reports to make their final decision on providing you credit. A credit card is often denied to you when you do not have a credit history. This is often in the case of the young adults who have never taken out a loan or have so far used a credit card through a parent. It can also occur in the case of divorced people who have never had a credit card in their name.

Secured Credit Card - A Great Way to Get Started

2010-07-15T07:17:00.000-07:00

Everyone is sure looking forward to get hold of his very first credit card. Having your own tiny piece of plastic that can 'make the world go round', as many would call it, could be a very exciting thought. Probably, but before signing up for one, you should make sure you have understood all the responsibilities that comes with it. There are so many forms of credit cards out there, not to mention the many institutions that offer the service. A little research about the different types of credit before jumping in the bandwagon could benefit you greatly. As you acquaint yourself with the world of credit, many would advise you to get a Secured Credit Card before going for any regular credit line.

What is a Secured Credit Card?

Just like other cards, a secured credit card is also a credit instrument issued by the same financial institutions that offer other forms of credit. It is also tied to specific terms that you have to agree on upon signing up, interest rates also apply to it, with minimum amount due in every billing cycle and is established with a specific credit limit. However, unlike most cards, a secured credit card is backed by collateral in the form of funds deposited in a savings or checking account and managed by the card issuer.

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How You Can Benefit from the New Credit Card Law

2010-05-18T01:49:00.000-07:00

The new Credit CARD (Card Accountability, Responsibility and Disclosure) law was approved on May 22, 2009 and since then, modifications has been made to protect consumers and credit cardholders. In this post, let us discuss how consumers can benefit from the changes made:

1. Rules on Credit Card Fees. Credit card companies are now prohibited from imposing additional fees from their cardholders who want to send in payment through telephone banking of through the internet.

2. No Double-cycle Billing. In the past, some credit card issuers use the double-cycle method of billing where the cardholder’s rate of interest is based upon the current and previous balances. Under the new Credit CARD, double-cycle has completely been eliminated.

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How Can Secured Credit Cards Help Me?

2010-03-18T19:26:00.000-07:00

Are you searching for a credit line to resolve your monetary worries, but, you do not have a credit history to back you up? Then worry no more, because secured credit cards could help you clear up your financial woes without the requirement for a credible credit history. But wait, how do their offers work? What are some essential considerations when looking for a secured credit card? The answers will be provided below.

What are Secured Credit Cards?

A secured credit card as was mentioned above is a good option for a person who wants to build his or her own credit history. A lot of people use these cards with the intention to prove their capacity for managing their credit and finances so that eventually they could have a good credit score that will help them be entitled to standard or non-secured credit cards.

Could I Really Get Credit Cards Even Without Credit History?

2010-03-15T23:05:00.000-07:00

The response to the question above is a definite yes. Credit firms and banks are now improving their programs just so they could provide lines of credit to people without credit history and also to those with bad credit history.

The point behind this strategy is to make certain the steady circulation of money all throughout the financial systems, as well as to assist individuals build or repair their respective credit history, so that, shortly, they may be able to apply for unsecured credit cards.

But what are some credit cards offered to people without credit history and to those who have accumulated large debts?

Establish Credit by using Secured Credit Cards

Among the most well known credit cards for no credit and bad credit history are secured credit cards. While these credit cards could have low initial limits, high interest rates and fees, secured credit cards are particularly designed for those who are about to establish their credit history.

A Closer Look at Secured Credit Cards

2010-03-11T19:55:00.000-08:00

A secured credit card isn't for everybody yet if you want to build or rebuild your personal credit history, it is the exact type of credit card you need. In this post, let us discuss the most frequently asked questions about secured credit cards or also referred to as bad credit credit cards.

Who needs a secured credit card?

You may want to apply for a secured credit card if you have bad credit or no credit history. Because getting approved will not be determined by your credit score, anybody can readily obtain a secured card with no difficulty.

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Information About Secured Business Credit Cards

2010-01-07T07:34:00.000-08:00

When you’re in business, establishing your business credit history is a must. Having a business credit history that is separate from your personal credit history opens will open more doors of opportunity for a growing business and makes business transactions so much easier. Obviously, with an excellent credit to back your company, you’ll also gain the trust of suppliers, investors and get quick approvals from lending companies.

For a newly started business, Secured Business Credit Cards are a big help in establishing your business credit history. Here some basic pointers about secured business credit card that you should know.

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How to Get the Best Secured Credit Card Offers

2009-12-09T10:11:00.000-08:00

Secured credit card offers a lot of different benefits which may include; they are safer, convenient to use and easier to carry than cash. You are empowered to buy goods and get other services and charge them to your credit for later payments.

They also offer customer protection under the law, most of the major cards are acceptable in most places world wide, they can also server as cash during an emergency, another advantage you will have is with holding payments until the mix up is resolved, it offers guarantees to motel and travel reservations.

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Be Careful About Secured Credit Cards

2009-11-25T07:17:00.000-08:00

A secured credit card is often the first step to establishing or re-establishing credit. Many advisors will recommend starting out with a secured card and then moving on to a unsecured card. In general, it is a good way to build a credit history. Most lenders like to see some sort of revolving credit on your report.

A secured credit card allows you to open and maintain a savings account that works as the security for your line of credit. You can't spend any more than you have in your savings. Some banks will even limit you to half of your savings as your credit card limit. The deposit can range from a few hundred dollars to thousands.

What Banks Have Secured Credit Cards?

2009-11-09T10:33:00.000-08:00

There are just a small amount of major credit card companies and they are Visa, MasterCard, Discovery and American Express. There are large amounts of lending institutions that will issue credit cards and almost all of these companies offer the consumer the secured credit card. The major lending institutions are normally banks that are major banks with a large amount of depositors. That is why it is important that these banks make sure that when they issue credit that they will not only get all their money back but make a profit from the loan.

The bank lending institutions know that it is loans that help them to grow and prosper. It is important that they make a loan to someone who will make a great effort to pay back because soon the bank would go broke. The economy has changed the ability for most banks to make loans. That is why the secured credit card has become the number one credit card today.

Secured Credit Cards and High Fees

2009-11-06T20:09:00.000-08:00

Obtaining a secured credit card can become one of the most costly credit cards on the market today. It is the interest rate, membership fee, charges for late payments, and other fees accessed that can eat up the amount of money you put into a savings account to secure your credit card. It is not easy for you to get a credit card and maintain a good credit record when most of the money you apply towards your card is eaten up in fees.

A secured credit card may help you when it comes to making reservations at hotels or airlines but the expense behind using one may make you wish that you had another resource. You need to make sure that your APR% is within reason, that membership fee for the year is not high and most of all that there are no hidden costs attached.

Bank Secured Credit Card Offers

2009-11-03T09:50:00.000-08:00

Bank secured credit cards can be termed as small plastics that are issued to the clients for buying goods and services based on a promise from the credit card holder to pay at a later date mostly by the end of the month.

Based on the above the credit card issuer gives a line of credit to his clients who in turn can use it to get advanced cash make payments to merchants.

They are very different from charge cards for the charge card the payments need to be done in full every month.

How to Avoid Secured Credit Card Bankruptcy

2009-10-16T03:51:00.000-07:00

It is rather hard to find ways to pay off debts when you are almost going bankrupt. There some organizations, though, that can offer their services at a very affordable cost.

These groups will help one in debt management and get realistic payment plans.

There are also others who use credit cards to pay their debts off. Although it is also tough to get one, there are still some issuers who make it easier for the individual so that they are able to pay off their debts and avoid bankruptcy.

When one chooses to get a secured credit card, bankruptcy will surely be a farther option. These types of credit cards are great in helping rebuild bad credit.

Secured Credit Cards - What Kind Are There?

2009-10-14T02:43:00.000-07:00

With a bad credit report, you may find a bit difficulty to get a new card, but this does not mean you will never able to get a credit card. In recent days, many banks and financial institutions have started offering credit cards even to people with bad credit. Thus, this is another opportunity for you to reestablish your poor credit ratings.

Kinds of Cards:

Generally, banks offer these cards in two different forms such as secured credit cards and unsecured credit cards. For secured cards, you will have to deposit a sum ranging from hundred to thousand dollars as collateral for your personal credit limit.

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Secured Credit Cards - A Chance to Rebuild Credit

2009-09-23T09:29:00.000-07:00

If you have a low credit score, you're probably anxious to bring it up, and fast. The trouble is, it can be hard to get approved for a credit card when you have less than perfect credit. And filling out too many applications can make your score drop even more.

But there is good news. Secured credit cards provide a chance for you to rebuild credit and get back in the game. Here's how.

Apply for a Card

The first step toward rebuilding credit is to apply for a secured credit card. This type of card is easy to apply for, and almost all applications will be approved. This can be a relief if you've had a hard time getting credit.

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Secured Credit Cards - Things You Should Know

2009-09-15T02:38:00.000-07:00

Few people believe they know the whole thing about the secured credit cards. When you send in the deposit, you may get credit card. Prior to you go and jump in secured credit card race, there are some things that you must know.

You have to pay

Think you are entitled to low interest rate card just because you are giving security deposit? Rate of 5 or 6 % is dancing on your head, you would think twice. Interest rates of the secured cards are equal to the unsecured cards, & how much you will pay will depend on the damaged of your credit.

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How to Get a Secured Credit Card Today

2009-09-09T03:13:00.000-07:00

If you have bad credit and you're looking to find a credit card that will help you improve your score over time, you should be looking for a secured credit card. If you're unfamiliar on how they work, I'll give you a quick cliff note version.

Since you're at high risk to most credit companies, you're going to have to prove to them that you can pay off your bill. IN order to do so, they are going to ask for a deposit. This deposit is going to be your credit limit. Let's say you put $500 on the card, this will be your credit limit. Now, the card works like a credit card but if you don't pay your bill off on time, the company will dip into your account and take the money they need. This again will hurt your credit score. If you pay it off on time, you will only see an increase over time.

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Things to Know About a Secured Credit Card

2009-08-04T00:12:00.000-07:00

Secured credit cards are those credit cards, wherein you have to deposit cash as security to obtain them. This security or collateral further becomes a line of credit in your account. For instance, if you deposit $500 in your bank account, your credit limit becomes $500. This means, whatever sum you deposit in your account, it happens to be your credit limit. By depositing hefty sum in the bank account and making monthly installments on time, you can increase the chances of getting more and more credit or reward from the bank.

You get hordes of benefits from a secured credit card, such as it gives enough finances, even if you have poor or bad credit to improve your credit rating. You can enjoy the full-fledged benefits of these cards by making regular monthly payments. In addition, you need to choose a right secured credit card company, which reports your credit status to credit reporting agencies.

Things to Know:

Secured credit cards certainly improve your credit rating by sending the credit reports to all the credit agencies, thereby helping you in rigging up your credit status. If you make all your payments promptly, the credit card companies eventually will convert these credit cards into unsecured credit cards, so that you can start reaping maximum benefits from these cards.