Using credit cards nowadays is a fact in life. All
across the US & UK Credit cards have made it very convenient
for us to make business and consumer purchases easily wthout having to
worry how much money we have available in our pockets. Responsible use
of credit cards will build you a good credit rating.
What happens to people who have a bad credit rating
or no rating at all? In this kind of a situation they may not qualify
for a regular credit card. This is where a secured credit card
comes in handy.
What are secured credit cards?
When applying for a secured card one is required to
have a cash collateral deposit that becomes the credit line for the
account being opened.The amount required as deposit varies with the
issuer but is generally between $250 to $500. Your credit limit is
primarily determined by the amount of deposit that
you put in, typically between 50-100%. When shopping for secured cards
always watch out for:-
- The APR
- Benefits, perks and terms and conditions
- Activation fee and/or a low monthly fee.
Secured credit cards are an excellent
option for people with bad credit or for those who are starting out and
wish to build a solid line of credit. Shop for a card that does not
charge you an application fee. To build your credit rating, purchase a
few items and pay off all the balance every month. The major difference
between secured and unsecured credit cards is that secured cards
usually have high annual fees and interest rates.
Marketing scams involving secured cards
Have you ever come across something similar to this
ad....
ARE YOU..
DIVORCED,
SEPARATED OR BANKRUPT?
HAVE BAD
CREDIT, POOR CREDIT OR NO CREDIT AT ALL?
NO PROBLEM..
CALL US TODAY AND GET YOUR MAJOR CREDIT CARD
CALL 1 900 XXX
XXXX NOW
The ads try to make you
to believe that you can get a card simply by calling a 1 900 number. A
‘900’ number service, which you are billed just for
making the call, may tell you to give your name and address to receive
a credit application, or give you a list of banks offering secured
cards. You may also be instructed to call another 900 number at an
additional charge for more info.
To avoid this scam,
always look for ads which try to offer you easy credit. In standard
legitimate applications, issuers usually look at your credit report
first. Another sign to look out for is the 900 number that you are
meant to call. You will end up paying high charges for these calls and
will probably never recieve any card.
|
UK & US SECURED BUSINESS CREDIT
CARDS