If you have a limited budget, a poor credit record or you simply want a fast loan for your urgent cash need, then a secured credit card with a low interest rate and an easy to obtain monthly payment is the perfect way to achieve these goals. Most secured cards come with a low annual percentage rate (APR) and allow you to make the minimum monthly payment that is required to keep the card active, which may not be enough. However, this low payment rate is usually a fixed rate that will apply to all future credit card purchases as long as you remain the cardholder.
Secured credit cards
A secured credit card offers many benefits that are typically not found on other types of cards. One of the biggest advantages is that the card can offer you the option to purchase items from a cash advance or bank. This eliminates the need to use your credit card to purchase these items and will ensure that the funds are available if the need to make a purchase arises.
A secured credit card also comes with other benefits such as the ability to earn points when you make purchases and to use your points towards rewards such as air travel. Most people choose cards with a reward program as these rewards can help you save money every month. If you have no desire to use your credit card to purchase rewards, this option may not be a good fit.
Advantages of secured credit cards
While secured credit cards offer many advantages, they come with some disadvantages as well. You may need to have collateral to protect yourself from the risk involved in your card. Some secured credit cards will require a co-signer and these individuals will have to prove that they have the means to make the monthly payments. There may be a higher annual percentage rate involved as well.
There are many options for secured credit cards and you must weigh all your options before you decide which one is best for you. Secured credit cards often come with higher interest rates than unsecured credit cards, but this can be offset if you use the rewards offered by the cards. The rewards may include cash rebates, free travel rewards, hotel discounts and air miles. This is a great way to save money each month and get that extra bit of free money needed in between paychecks each month.
When you are applying for a secured credit card, it is important to have accurate information about yourself so that the company can determine whether your application is right for them. A good credit score will greatly increase your chances of approval. Also, you will want to know what fees and charges you will be charged once you have a card to protect your finances.
Always read the fine print on any secured credit card agreement that you sign as this will provide you with additional protection against any future fees or charges. Always read all the small print as well before you make any payments on the card as this will help avoid misunderstandings.
Before you purchase any credit card, make sure that you research the company thoroughly and find out how much the interest rate is going to be for the particular credit card that you are interested in. As you shop around, you will find that there are many options to choose from with different interest rates and you will be able to compare and contrast the various offerings before making your decision.
Secured credit cards are often very convenient
This is because you do not have to carry around large amounts of cash with you. The interest is usually paid on time each month, and the rewards you receive will be worth the initial expense for most people.
Credit cards are a great way to build credit and you will soon be in a better financial standing than you might have ever dreamed possible. It will also be easier to obtain loans, mortgages and credit cards from other companies if you need them down the road.
Make sure that you follow all the steps in this quick online credit application to get started building credit today. And, remember, if you ever need to apply for a credit card, do not forget to include your vehicle identification number, social security number and driver’s license number.