If you have been a holder of a credit card before,
you must have heard of credit terms such as secured, unsecured. Doing
research beforehand is important to be sure what type of card is right
for you. Unsecured credit cards are usually popular with the majority
of most people. They have fewer restrictions than the secured cards.
Trying to obtain an unsecured credit card with no
credit checks is a hard thing to to. The reason is that banks need to
check your credit history first before they decide if you are worth the
risk. If you've had bad credit in the past it will be hard for you to
get an unsecured credit card. One tactic you can use to improve on your
credit rating is to make regular payments on your balances and purchase
a secured card.
A cardholder owning an unsecured credit card borrow
funds from the company supporting the credit card. An annual fee may be
charged and the cardholder is required to pay on the balance every 28
days, failure to which finance charges and interest apply will apply.
These are the total fees associated with an unsecured card.
If your are interested in these types of cards and
have filled in your application, the issuers will then search your
credit history. Once you are approved, a certain limit will be set on
your card. When you get the card it is important for you to make
regular payments in order to improve your credit over time. If the
issuer sees that you are making regular monthly payments, they can
approach you and suggest that they increase your credit limit. This
will build your credit with time. Just take note to avoid making huge
unneccessary purchases which might affect your regular payments.
Determining what type of credit card you need
depends highly on your spending and budgeting habits as well as the
status of your credit score. Its best for people with a low credit
score to go for secured credit card over an unsecured credit card. We
also advise you to watch out for lenders who might try to take
advantage of you. One of the commons scams goes like this...
You come across an advert that guarantees you will
be accepted for an unsecured credit card. You then get the card with a
credit limit of $300. The first charge you get is the program fee of
US$ 98. You are also charged an activation fee of US$ 70. When you add
the annual card fee of $50.00 yoor line of credit turns out to be
US$82!
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UNSECURED CREDIT CARDS