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Finding The Best Secured Credit Cards For Personal And Business Use

Secured credit cards are often considered second chance chance credit cards, as they offer individuals or companies a chance to have a credit card despite bad credit or a lack of credit history. Secured credit cards are issued typically by the same banks or financial institutions that offer regular credit cards.

The main difference between secured cards and regular unsecured credit cards is the requirement of a security deposit that is held by the bank as long as the secured card is active. The credit limit on the card is equal to the deposit amount, typically $300 to $500, but it can sometimes go up to $1,000 and more. By making a security deposit, it ensures that whatever is spent is backed by the deposit funds.

Thus, there is very little risky for the bank to issue the card. At the same time, it offers an additional opportunity for people or businesses to access the convenience of a card and to build up on one's credit history. Besides the credit limit, terms like having an APR (annual percentage rate) and making minimum monthly payments still apply.

 

 

Benefits Of Secured Credit Cards

Being able to find the best secured credit cards is highly beneficial for both an individual customer and a business. For many, the use of a secured card allows them to build up on one's individual or business credit score. Eventually, they can progress to towards unsecured credit cards with higher and higher credit limits. Besides, carrying a credit card is a lot safer than having a bundle of cash in your pocket.

One is also offered the convenience of buying goods and services through charging the expenses on the credit card and paying for it later instead. For business accounting purposes, this will save a lot of trouble in tracking and reporting on expenses. Almost all of the best secured credit cards are Visa or Mastercards, and accepted in establishments worldwide.

Sometimes, secured credit cards are best recommended for those who do not have a firm control of their expenses since they are have already made the deposit to back it up. For businesses, this can act an additional layer of financial control.

As you can see, there are lots of benefits to these cards. One will also find lots of choices, and there is no need to rush into applying for one. Just like with choosing any credit card, it makes sense to search for the best secured credit cards.

Best Secured Credit Cards Evaluation Tips

TIP #1: Don't Accept the First Secured Credit Card Offers You Receive

Although the offer presented to you may already sound highly appealing, make it a point to look further for other offers. One offer may be better than the other (see tip #2) and the first ones you receive may not yet be the best secured credit cards.

When applying for credit cards, a company may do a hard pull on your credit history, and this will result is lowering of your credit score. You may think that you can apply a card that sounds good, and then switch to another one in two months if that's better. But it won't help your credit score and may cause further harm instead. Besides, it's a hassle. So why not shop around until you find the best offer.

TIP #2: Don't Forget to Read the Print

Basically, all secured cards require an initial deposit and its amount will also serve as the credit limit. However, some cards have different fees that can add up to the total deposit amount. These could include application fees, annual fees and other sorts of fees. These information are normally found in the fine print and the key to finding the best credit cards is to have the patience to read. You may even want to have a piece of paper of notepad out to keep notes.

TIP #3: Don't Give In To Any Sales Pressure

When trying to get the best secured credit cards, you should not give in to the fear once a representative from a bank or any institution offering the card offers any type of sales pressure. The representative might tell you tales of financial mishaps and failures saying that those situations happened because a customer did not choose to take out the secured credit card that they are offering.

You might also be lured into getting their offer by saying that the loan application that you may be applying for will not be approved unless you take the offer. You can always refuse to this and tell the representative that you are still in the process of looking for the best secured credit card with the most beneficial terms.

A good approach to use to the internet to do some initial research so that you can compare offers and get educated about your choices on the best secured credit card offers for your needs.

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The perfect alternative to a checking account