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Are Secured Credit Cards Right For You?


Secure Credit cards are a great option for making purchases and keep records of your spending if used wisely. In fact, it is hard to imagine life without credit cards.

Whether it’s for personal shopping, travel, for your business or a student card you can enjoy all the benefits of a major credit card by filling out a simple application below.

With Visa Secure Credit Cards, for example, you have access to cash at over 500,000 ATM’s, 24-hour customer service and worldwide acceptance at more than 18 million locations. Getting the best one has never been easier.

secured credit card
secured credit card

Before filling out an application, there are a few things you should look into that can save you a lot of money in lower interest charges and rewards. Your credit score will determine the type of card you are eligible for so it is a good idea to get a Free Copy of your Credit Report Here and check it for errors before applying.

Rectify Mistake On Your Credit Report

If you find mistakes on your credit report, contact the credit reporting agency and have them corrected. If you cannot do this yourself, you can find somebody to do on your behalf. This can save you a lot of money in credit card interest. The better your credit score the lower the interest rate you will qualify for. If you do not qualify for a regular card, the secure credit cards are a great option.

Applying for a card online is a smart move as you can easily compare offers from many banks and credit card companies to find the card the meets your requirements. There are a lot of different cards on the market so it is wise to do some research before accepting the first offer you receive.

One thing to bear in mind when applying online for secure credit cards is that there are some limitations on instant approval. Most online companies with instant approval mainly apply to individuals with good credit. If you have poor credit, it has become much more difficult to get instant approval. Before the current financial issues with the banks, it was easy to get instant approval regardless of your credit rating. This is no longer the case.

However, it is not all bad news. For people with bad credit, there are secure or pre-paid credit cards available. This is a great option for students or those who want to rebuild their credit as you cannot spend over the limit.

Secured Credit Cards Are Better?

Both unsecured and secured credit cards can be used to purchase goods and services. However, a secured card requires you to open and maintain a savings account as security for your line of credit. A regular unsecured card does not.

Having a good credit score is necessary these days, particularly as many of the services we use every day requires this just to able to business with them. You will also have an easier time making purchases, from something as small as a favorite song online to something really big like a new home for your family.

However, maintaining a good credit score is easier said and done, and a lot of people have found themselves with a low credit score because of poor financial decisions they have made in the past.

This is where they end up in a double bind: in order to improve their credit score they need to be able to take out loans, but they can’t do so because of their poor credit rating. In this case, secured credit cards can be used to rebuild your credit score and help you regain your good credit standing.

Secured credit cards are very similar to a regular card in that people can use these secured credit cards to purchase products or avail of service just like a regular credit card. What makes it different is that the credit line is secured by a cash deposit made by the customer.

This deposit has a two-fold purpose: it serves as the security for the company issuing the credit card and ensures the customer cannot get into debt because they can only use the card up to the limit of what they have on deposit.

Offer A Means For People

Hence, a secured credit card can provide a means for people to have it even if they have been denied credit cards and loans in the past, and at the same time, it helps them rebuild their credit history. This is great for those who are only starting out in life with no credit history or for those who want to re-establish their credit rating.

While the credit available to people with a secured credit card depends on how much they deposit in their accounts initially, it doesn’t necessarily mean that their credit limit is equivalent to how much money is in their account, although this may be the case for some cards. There are some banks that extend the credit limit by 5-10% higher than the total deposited in their bank account.

Having a secured credit card help teach responsibility in bill paying. Paying the full outstanding balance on a secured credit card each month shows lenders that the cardholder can meet their responsibilities. This goes a long way to improving one’s credit score. Credit bureaus also look at how much credit is available when they calculate a credit score.

When looking to obtain a secured credit card there are some questions you need to ask so that there are no surprises later. Find out if there are any age restrictions and how much monthly income is needed to be considered for a card. A person may also need to have a prior existing bank account before they can be eligible.

However, most people can usually get approved for a secured credit card by paying the application and annual fees plus making the required security deposit. Depending on how they manage their finances and if their credit score improves, their secured credit card can be upgraded to unsecured one in the future with all the benefits associated with these cards.

Nonetheless, if your credit score is not good, it is also possible for you to get a card still as they are financial merchants that offering unsecured credit cards for bad credit people. So you may try to apply for one and you may get approved in a short time.

Is Secured Credit Card Information Secure?

Using a credit card can be dangerous to your financial well being if your information falls into the wrong hands, so security on such cards is immensely important. Credit card companies spend thousands of hours every year working to find new and effective ways to increase the security level on your credit cards.

 Safety Features

Regardless of new safety features being implemented on cards every year, it is still important to abide by basic security procedures to keep your information safe. Never leave your credit card out where someone might see it, and don’t give your PIN number to anyone for any reason. Do not give financial information over the phone, and do not fulfill requests for personal information online; unless you personally initiated the transaction, and you are positive that only the party you intended is receiving your credit card information.

An Australian credit company has designed a new card with a special keypad directly on it, so that you can enter your PIN to get a one-time credit code that will authorize your purchase. Many in Italy, Switzerland, Great Britain, and Israel are already using this new technology.

A very simple form of protection being used is a credit card sleeve which will hide the number. It still shows the last 4 digits and your name for identification, and the back is clear so that the vendor can authorize your signature.

Considering a large number of people who have Smartphones, it is no surprise that manufacturers of these devices would get in on credit card security. Some phones, such as the Motorola ATRIX 4G, now come with built-in programming for credit information. Once programmed, you use a biometric fingerprint capture terminal to prove your identity, and then simply choose the card you’d like to use. You can also set up your device with discount card numbers for different merchants so that you don’t have to carry around a loyalty card for each store you regularly shop at.

 RFID

A popular new feature for credit cards is “wave and pay.” This is possible through radio frequency identification (RFID) technology, and makes paying with a credit card even more convenient, and is intended to keep the number from being exposed. Unfortunately, while RFID cards are very easy to use, they are not as secure as most people would like.

Any technology that uses radio frequency, internet-based, or other virtual communication has weaknesses and is subject to the possibility of being hacked. Many have suggested using fingerprint activated security features, similar to those previously mentioned on Smartphones.

Technology is always changing and improving, and as it does, so do the skills of those who might like to steal credit card information. Luckily, credit card security is always changing and being updated with new safety measures and procedures.

It is very important that all credit users continue to use basic security measures with credit cards, and also pay close attention to the security features associated with the credit cards they choose to use.

Unsecured Credit Cards for Bad Credit

The unsecured credit cards for bad credit people are some of the best cards you can apply for online because of their super fast approval process. In most cases, you can get approved within thirty seconds or less!

But, and more importantly, for people with a bad credit score, the credit card is reports to the credit bureaus and this means that your timely payments will actually be making a difference to improve your credit score!

unsecured credit card

The other nice thing is that as you make your payments on time you will automatically get increase of your credit limit to reflect your improving credit score.

The Card Can Be Used Worldwide

For most of the unsecured credit cards, they are accepted worldwide, but offers only the basic functions of a regular credit card. If your credit is bad or low, and you need to get a card to help improve your credit, this card can help you rebuild your credit. (Just make sure you don’t let it get stolen!)

It does charge a pretty high interest rate and a higher than normal annual fee (plus a maintenance fee!), but in terms of the competition, this type of card is very competitive. But don’t forget to read the fine print. If you think your economy status is rather affordable, then you can apply for something better like a Walmart credit card.

Repair Bad Credit

The unsecured credit cards for bad credit can be a great option for those needing to start down the road of rebuilding their damaged credit.

So, the first thing that you should do is check your credit score to find out exactly where you stand in regards to your credit rating. This will give you a more specific idea of exactly what the banks and lenders see when you apply for a credit card, line of credit, loan, car and so on. This will give you the first hand information that you need in order to go about improving or fixing your credit. So start by asking the credit bureau for a copy of your credit score.

After you receive your credit report, you should go and review everything in it, and if you find anything that is incorrect, you should notify them immediately and try to get it corrected.

If you do have any bad marks on your credit history this is usually from having some bad debts outstanding, and the only way to erase them is to pay them off. So pay them all off, and be sure to pay them off by paying off the debts with the highest interest rates first.

Are you unable to pay your debts off?

Then try to get a loan to consolidate your debts so that you can have all your debts rolled into one total with a lower interest rate. It will help you pay everything off much quicker. If you cant get this try contacting a credit counselor who can guide you through the process of repairing your credit and paying off your debts. In some cases, these counselors are able to contact your creditors directly and ask them for lower interest terms. And just by doing this alone, many of these non-profit counselors have been able to reduce their clients interest debt load by up to forty percent!

Next, close any credit card accounts that you have and come up with a plan to live within your means from now on. Take stock and inventory of your current financial state and try to liquidate any assets that you may have that can go towards clearing off your debt.

Once you have done all this and have cleared your credit, you can start trying to make your application.

Why get the unsecured credit cards for bad credit?

Because it is a card that nearly everyone can apply for and be approved for, and most importantly this card reports directly to the credit bureaus. So by getting this card and making your monthly payments, you will be re-establishing your credit rating and building good credit. So that’s a pretty strong reason for applying for the this type of card like the tribute credit card.

So really, this card is a really an ideal card for you with the fact that its pretty widely accepted throughout the world (given that it is issued by Mastercard), is really easy to apply for (as you can do it online), virtually everyone is accepted for this card, there are no minimum finance charges, a twenty five day grace period and the one time application fee isn’t outrageous.

Of course there are a few drawbacks to it as well. One of the disadvantages is that it really doesn’t has any sort of extended credit card functionality and you have to pay the balance in full each month. But really, when you think about it, for people who have had credit trouble before and are really committed to fixing their credit, these drawbacks may be a small disadvantage to being able to (and having the option to) fix their credit using the unsecured credit card.

It is nice that most of the cards are offering a fairly flexible interest rate, virtually instant approval (in terms of and when compared to most other credit cards), is open and willing to accept people with poor or bad credit (while most other cards are not), and it actually has travel accident insurance (a nice little bonus for sure).

I mean, it isn’t all good stuff with the unsecured credit card. You do have the application fee which is on the higher side of things, and you don’t have a very high maximum (which of course is dependent upon where your credit score ends up landing) with this card. Many people who get this card start off with a three hundred dollar limit, and in terms of card options, there isn’t a whole lot, but it is a great card to start rebuilding with, even if you have to end up paying off the whole balance owing on the card itself every month. But it is a fairly current card, and what I mean by that is that they do offer some online banking options with the card, so you are able to pay your defaulting amount online as well.

If you are looking for unsecured credit cards for bad credit with no deposit or processing fee, you may check out the card rate reviews and do a little comparison. You may found one that best suit your need very soon.

Guaranteed Payment With Prepaid Credit Cards

No matter how many credit or charge cards you have in your wallet or purse, prepaid credit cards can be a real lifesaver. Keep a permanent balance on any of the prepaid credit cards you have in your possession and you’ll never be caught short for money – ever.

Used in exactly the same way as a credit or debit card, no-one will know it is prepaid and it is as secure as any other card. If you want to know a little more (or a lot more) about how flexible they are, read on…

 

Applying for prepaid credit cards

Making an application for prepaid credit cards is much the same as a regular credit or debit card, except the acceptance criteria are somewhat lower than those of a regular credit card. Some issuers offer rewards for applying and upon acceptance, money is deposited on the card in much the same way as special offers are processed on regular cards.

The easiest way is to apply online; once the application is made it is usually a formality in processing, and depending on the issuing company the card will be with you by secure courier within a few days, delivered to an address of your choice.

Making a credit payment to prepaid credit cards

You can pay as much or as little to your card per month as you want. Some card issuers require a minimum amount to be credited to the card at any one time, but that amount is usually in the low tens of dollars. If you are in work or have two or three part-time jobs, your salary payments can be made directly to the card, thereby saving you time and trouble.

If you receive benefit payments (such as Social Security or retirement benefits) then this can be paid directly to the card also. You can make multiple deposits to prepaid credit cards at any time or on regular dates, the choice is entirely yours. There are no charges made against payments to the card and unlike regular charge and credit cards, there is not an annual service fee to pay.

Budgeting your money, saving money on fees and repairing credit ratings

Most prepaid credit cards do not charge an annual fee and as with regular credit cards, there are no fees on transactions. You will be able to pay for gas, groceries, clothes and other goods and services as well as taking cash advances from an ATM.

One of the biggest advantages for consumers who have a damaged credit rating is that a prepaid card counts towards repairing that damage and improving their credit status.

All prepaid credit cards are truly flexible friends and you’re guaranteed to be able to get at your money anywhere that cards are accepted or through regular ATMs. Apply online today and start managing your money, reduce the fees you have been paying and by default, start cleaning up any damaged credit rating you may have accrued in recent times.

Credit Card Companies Chasing Bigger Charges

It is no secret that banks are coming up with more and more fees. What may be surprising is the lack of transparency in the whole matter. Most customers don’t even realize they have been charged a fee until they get their credit card statement. What is causing the credit card companies to feel the need to increase the cost of having a credit card?

Market Pressures Impact Credit Card Companies As Well

People should be aware that credit card companies feel the same market pressures as any other business. They need to make a profit to stay in business. This means passing on higher costs to customers sometimes. No one likes to pay an extra fee, but it could keep your bank from going under. It would be much harder to use your credit card if there was no issuer available.

Customers Can Choose Another Card

Credit card companies are similar to most businesses in the fact that they need to keep customers happy. You do have a choice to use another card if you are unhappy with the level of service received. Another option is to simply stop using your credit card. However, credit cards accounted for more than half of all purchases in 2007. This trend has only slowly reversed itself even in the wake of the credit crisis that followed.

Debit Cards Are Used A Lot As Well

The credit card companies are only going where the money takes them. Billions of dollars worth of purchases have been processed through credit and debit terminals in the past five years. It is only good business sense to capitalize on that popularity. Retailers who complain about extra fees associated with merchant costs should not blame the banks. They should understand that they have to pay for a service just like their customers are paying for goods and services provided.

Consumers May Not Feel The Same Way

Increased fees charged to retailers will force the retailers to charge customers more. The price of goods may rise to make up for the increased charges. This is not going to go over well with many consumers who already feel the pinch of higher prices. Food, fuel and other everyday goods already have risen quite quickly. Paying even more because credit card companies want more money will just make things harder. Credit card companies and consumers will need to find a happy medium before long.

Large Companies Don’t Feel The Pinch Of Competition As Much

Major credit card companies such as Visa and MasterCard have been accused of fixing prices. However, this may be overblown. Larger companies tend to have a dominant influence over their industry. This means that customers will tend to use those companies even when the product isn’t as good. Naturally, they want to expand into as many markets as possible. Expanding into new markets while also charging more fees is the only way to make more money when you grow to be so large.

It’s All Legal

The worst part for consumers is that most of the rate hikes are completely legal. Currently, there are few laws that restrict the ability of credit card companies to charge whatever they like. The only solid law is the restriction of interest rates to no more than 29.99 percent.

Customers who have credit accounts are only required to be notified further in advance. In other words, a customer has to be notified of a rate hike or new fee 21 days before the statement date. However, this has no impact on whatever decision a credit card company makes regarding a specific credit account.

Using a credit card comes with consequences. The credit card issuer can charge consumers whatever rate necessary to make a profit. Retailers may need to pay more for the right to use credit card terminals that service customer transactions. Perhaps the answer is to rely less on credit and debit cards. However, that is quite unlikely given recent trends.

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