Reviewing The Reviews
It can be helpful to research the best secured credit card reviews when choosing among credit cards. The “best secured credit card” reviews can help you sift through the seemingly endless array of credit cards offered in the marketplace today.
It is all too easy to drown in the offers out there, for there are so many and they all boast being this, that, and the other thing. If you look into the “best secured credit card” reviews, you can draw upon the experiences of others and the insights of financial professionals in order to make a more informed decision.
The important thing when looking for best secured credit card reviews is to first have the right questions in mind. If you don’t already know what you want or should be able to get, none of the best secured credit card reviews are really going to make any sense to you. This is obviously not helpful.
What is a secured credit card
This is a credit card that requires you to put down a collateral deposit into a checking or savings account, and when you first get the card your credit limit is equal to the amount of money that you have in your account.
So, if you get a secured credit card with a $400 limit, that means you have deposited $400 into your account. (This does not mean that you can charge up to $400 at a time, any time you want. It means that your grand total outstanding principal balance can be up to $400.) If you want to raise the amount of your credit limit, you have to put in more money into your account-typically.
However, there are banks that will reward you for consistent timely payments by eventually raising your credit limit without your needing to secure it with any additional deposits. In other words, you would then have some unsecured credit-and when you get unsecured credit, that’s an indication that your credit rating has improved. These are the secured credit card offers that you should apply for, because otherwise you’re really just getting yourself a more-expensive-than-average debit card.
A secured credit card is not that difficult to find, and it’s even easier to find if you’re a member of a credit union. It is also easy to qualify for a secured credit card, because the bank isn’t really risking anything due to your collateral account deposits.
Many secured credit card issuers won’t even check your credit. However, having said this, there is currently a trend in the banking industry away from secured credit card offers towards unsecured credit cards with lower credit limits and higher fees for people who have low credit ratings or who need to establish credit history.
As with secured credit cards, banks that offer unsecured credit cards compete on fees and interest rates. So you don’t want to jump into the first unsecured credit card offer that you see. Again, carefully read “best secured credit card” reviews to glean important information about different cards’ competitiveness with rates and fees.
Secured Credit Card Features – What To Look For, What To Avoid
And there are good secured credit cards, there are mediocre secured credit cards, and there are terrible secured credit cards. As in any industry or endeavor, there are unscrupulous people looking to take advantage of someone else’s misfortune-and it’s assumed that if you’re looking for a secured credit card it means that you have the misfortune of black marks against your credit so that you can’t qualify for an unsecured credit card.
There are some secured credit card issuers who, for instance, will force you to buy credit card protection insurance and pay monthly premiums on it. The mediocre cards are those that charge high fees and interest rates, and their customer service may be less than stellar. The good cards are issued by lenders who really try to help you out.
Finally, make sure that the bank you go with for your secured credit card is reporting to all three major credit bureaus. The most important thing about having a secured credit card is building up or establishing your credit. You want to eventually get higher credit limits and qualify for an unsecured credit card and other loans.
So, now you understand what questions to ask as you look through the various best secured credit card reviews.