Build A Good Credit History With A Secured Credit Card
Posted on 22. Jul, 2009 by admin in Credit Scoring
If you have no credit or bad credit, a secured credit card is one of the best ways to establish a good credit history. While it does have some drawbacks, it might be the only way to get credit if you’ve been turned down every where else.
To obtain a secured credit card you are required to put a certain amount of money into an account that is held as collateral. Since, the bank or financial institution is guaranteed to get their money if you fail to make your payments, almost anyone can get a secured credit card.
Your credit limit will vary between each institution and depend upon the arrangement that you’ve made. In some cases, your credit card limit will average around 90 percent of your deposit, but in other it could be as much as 150 percent of your deposit.
Although you won’t be able to withdraw the cash deposit you make, you will earn interest on the money. You should make sure that you get all the details before singing anything and accepting the card. In some cases you’ll get your deposit back as soon as you close the account, but some institutions will hold the money for several months pending any outstanding late fees or charges.
