Debbie Dragon asked:




With so many consumers looking for ways to rebuild their credit, secured and prepaid credit cards are growing in popularity. Some people swear by them, and others try to avoid them. If you’re new to credit cards, you may have wondered how a prepaid card differs from a secured card, and how either kind can be used to build credit.

Secured credit cards work much like regular credit cards, but with less risk to the card issuer. The cardholder deposits money into an account, which is used to secure a line of credit. Typically, the cardholder needs to deposit enough money to cover 100-200% of the card’s credit limit. For example, a one thousand dollar deposit would result in a credit limit of five hundred to one thousand dollars.

Secured cardholders are responsible for timely payments, just like regular cardholders. This is a good thing, because it teaches good repayment habits and helps to establish a positive payment history – a very important part of rebuilding damaged credit. If a secured cardholder does default on a payment, the card issuer is protected; they can recover their loss by taking it out of the cardholder’s deposit account.

Critics of secured credit cards point out the difficulty of coming up with a lump sum of cash to use as the deposit, and they do have a point; if cash is that tight, perhaps it isn’t the best time to get a credit card of any type.

By contrast, prepaid credit cards are not actually credit cards at all. They look like them, and can be used like them, but they are really more similar to debit cards. The cardholder deposits money into an account and the prepaid card is then used to draw on these funds. No actual credit is offered by the card issuer. Setup fees and small monthly fees usually apply.

Prepaid cards can be issued to minors. These cards are popular with parents of teenagers who want their kids to have access to a credit card, but one with a definite spending limit in place. No large, up-front deposits are required to obtain a prepaid credit card. The prepaid card limit is up to the purchaser, who can load the card’s account with an amount of their choosing.

Prepaid cards can also be used to establish or rebuild credit. Some issuers give out cards with the Visa or MasterCard logo on them, and these cards can be used anywhere those brands are accepted. Setup fees and monthly fees vary by issuer, so do a bit of research to find the best prepaid card for you. You will find that your options are plentiful, and competition between issuers is steep – which is good news for potential cardholders.

Secured and prepaid credit cards are similar in form and function, with a few notable differences. If your credit is damaged or nonexistent, these cards present an opportunity to improve your situation. If you have a teen or young adult with an allowance, but don’t want to worry with cash or checks, prepaid cards can be a safe and convenient way to store their money. Likewise, if you have trouble limiting your own spending, you might want to try one of these cards.

But if your credit is average or better, and you’re able to control your spending and pay off your credit card balance each month, you might be better off going for a standard, unsecured credit card. The interest rate and fees will almost certainly be lower, and you won’t have to worry about putting up a big deposit. There are many available cards to meet many needs. A little research should turn up the card that best meets yours.

secured credit cards

Max Anderson asked:




Not all banks who offer secured credit cards advertise the fact. Because of this, you may find yourself applying for numerous unsecured credit cards before you come across a secured credit card application.

This can result in numerous inquiries on your credit report and a decrease in your credit rating (which is part of what got you here in the first place)!

If you want to find the banks who offer secured credit cards without going through all of the hassle normally associated with doing so, follow these seven tips:

1. Be Realistic

The first thing you need to do when looking for banks who offer secured credit cards is be realistic about what you’re going to qualify for.

Don’t apply for an American Express or a Diner’s Club card thinking they’ll offer you a secured credit card if you don’t qualify. As a rule, upper-crust credit card companies do not offer secured credit cards.

2. Utilize the Web

When it comes to searching for banks who offer secured credit cards, the Web is your very best friend. There are informational websites that offer a wealth of knowledge on secured credit cards and they can even direct you to sites that allow you to apply for secured credit cards online.

3. Target Your Search

Rather than haphazardly filling out credit card applications hoping to run into a secured credit card opportunity, look specifically for secured credit card applications to fill out.

The banks who offer secured credit cards do want your business and they aren’t really hiding from you. Search for secured credit card applications and you’re likely to find just that.

4. If It Sounds Too Good To Be True…

As with any credit card offer, if you run into a secured credit card offer that sounds too good to be true, proceed with caution.

Some of the banks who offer secured credit cards really don’t have your best interests in mind. That is why it is important to deal only with reputable credit card companies.

5. Understand the Differences

When looking for banks who offer secured credit cards, make sure you understand that not all of them are created equal. Some will charge higher fees, while others will charge higher interest rates.

Before applying for any single secured credit card, evaluate the costs of that card and make sure it’s the card that will best meet your personal needs.

6. Don’t Pay Anything Up Front

Never, ever deal with the credit card companies that ask you to send them cash up front. Nine and a half times out of ten they are a scam.

A legitimate secured credit card company will charge any applicable fees to your new credit card account, allowing you to pay them off after the card is in your hands — not before.

7. Easy Does It

Keep in mind the golden rule — less is definitely more. Too many credit card applications equals too many credit inquires. Just because you find ten banks who offer secured credit cards, it doesn’t mean you have to apply for all ten of them.

By following these seven steps, not only will you be able to find the banks who offer secured credit cards, but you’ll be able to tell the good from the bad in seconds flat.

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OneBestTips asked:

www.top-creditcards.net How To Select A Secured Credit Card Offers – Is Good For You If you are the kind that is seeking to reconstruct your own credit, You have possibly have got viewed all of the choices on the internet. Through poor credit dependent credit cards in order to secured credit cards, There is a great deal available also it possibly can make your own mind blow. These days, let us check out secured credit card offers and also how you can chose the good for you plus your financial situation. Firstly, you’ve to bear in mind when you are considering these kinds of cards are what you need in the card. Can you simply want a card which reviews for the main credit agencies or even would you like a card which will provides an exciting about bundle such as excellent customer support, good prices and also hardly any fees? Like every card in the marketplace , you need to keep the eyes peeled for a lot of items, particularly the actual fees. Therefore you’ve got a good deal to understand about secured credit card offers. Learn More About 0% interest credit cards, please visit : www.top-creditcards.net

secured credit cards

Tom Tessin asked:




If you’re in the market to fix your credit today, you’ve probably come across a secured credit card. When you’re looking at these applications, you’re probably wondering which ones you’re going to get approved for and which ones you’re not going to get approved for. Well, I have great news for you and I’ll tell you now that 99% of the applicants that apply for a secured card generally get approved and I’ll tell you why.

With a secured card, you’re going to have to give the bank money before you even can use it. Since you’re a higher risk to the companies, you’re going to have to have some sort of money as back up just in case you don’t pay your bill. Since they will have your money, they won’t have to worry about never getting money for you. This is why they can approve anyone that applies.

As long as you put a deposit on the account, there’s almost a guarantee that you’ll get approved. Just make sure that you read over the application before you do apply because you’ll find that there are many fees with many cards. Some of the fees you’re going to encounter are setting up fees, annual fees or even monthly fees. When you do apply, you’ll find that there’s a fee and disclosure sheet. I highly recommend you look at this before you apply.

If you’re looking to get a higher credit score or a credit card for your wallet, I highly advise you look down this route. There are a lot of great cards out there. Do your homework and you should find a great one that suits your needs.

secured credit cards

Dan Moskel asked:




The Centennial card is created for individuals with a low credit score. It is issued by the First Premier Bank a member of the FDIC.

There are easy requirements for approval; however it does carry some fees. This includes a one time $95 fee, an account set up fee of $29, and an annual fee of $48.

These fees will be charged against your available credit. Meaning when you are issued your card, you will have these fees on your balance.

It comes with an initial credit limit of $250, and an APR of 9.9%.

It can come as a MasterCard or Visa; you will decide when you apply. Additionally if you apply online you will have a response to your application within 60 seconds.

When making your monthly on time payments you will create a positive payment history on your credit report.

Additionally your utilization ratio is very important. This is the amount of debt you have compared to your available credit. If you can keep your monthly balance at roughly 30% of you limit it will help the most.

If your card has a limit of $250 then you want to keep the monthly balance around $75. After you have paid on time for 6 months you will be eligible for a limit increase.

The First Premier Bank is a member of the Better Business Bureau. They are located in Sioux Falls, South Dakota and have issued cards to over 3 million people.

Your card is accepted everywhere the Visa or MasterCard logo is seen. You can qualify for the card if you are over 18 years old and have a valid social security number.

Recently we have seen a rise in interest rates even with prime lending. Some rates have jumped to an outrageous 30% without cause, meaning the customer did not pay late.

In sum we suggest you explore all your options for credit if you have made some mistakes. It may be more cost effective to get a secured or prepaid card, and take other steps to repair your damaged score.



secured credit cards

Lara Sawyer asked:




Rebuilding your credit after bankruptcy has been discharged may be preoccupying your thoughts lately. Knowing what credit insiders know about reestablishing yourself as a low risk to lenders can give you the upper hand in getting your credit file back in tip-top shape.

Secured Credit Card Accounts

As soon as possible following the discharge of your bankruptcy, establish one or two secured credit card accounts with an online lender. There are multitudes of creditors who offer secured credit cards, and this type of card is extremely easy to be approved for. The secured credit card is secured by a deposit that you make with the lending institution. The amount of your credit line will equal the deposit you have on record with the lender.

Use your secured credit card account wisely; potential lenders look to see the amount of debt you have as compared to the limit of credit you have available. If you have a secured credit card with a limit of $2000, for example, and your balance is $500 – then your debt to limit ratio is 25%, which falls below the recommended 35% or less than lenders want to see. On the other hand, if you have two secured credit cards with combined limits of $1000, and your balance is $400, then you would appear less appealing to potential lenders because your debt to limit ratio would be 40%.

Run A Tab

Do not pay your balance off in full each month; doing so can be detrimental to your credit score. Although one would think that it looks good to lenders to see a borrower who pays off their debt fast, on the contrary, this type of payment does not show a solid payment history of timely payments. Always leave a balance on your card, even if it is just a couple of hundred dollars.

Apply Online For Best Rates

There are many fine lenders that do business mainly online that are trained extensively in servicing post-bankruptcy secured credit cards. These lenders have the expertise to help you get the best secured credit card on the market – thus saving you money on interest and account fees. With user-friendly websites that offer secure applications, online lenders are the most convenient sources of secured credit cards after bankruptcy.

Open Diverse Accounts

Be sure not to limit your rebuilding to just credit cards. Lenders want to see that you can manage multiple types of payments. Diversity in account type is important when considering your creditworthiness because it shows that you are capable of handling varied types of credit in a responsible fashion.

Other types of loans you might want to consider to diversify your credit profile include bad credit automobile loans, bad credit tenant loans, and bad credit personal loans. There are many online lenders who offer these loans specifically for those who have recently been through a bankruptcy proceeding.

Make A Fresh Start

When your bankruptcy is discharged, you become in control of your financial future. It is during this time that you should become proactive in your quest to raise your credit score and thus make yourself more likely to be approved for nearly any type of credit you desire, including a mortgage on a home. The most important part of rebuilding your credit once you’ve established yourself with new lenders is to make your payments on time, every time that a payment is due. Even one late payment can take dozens of points away from your score.



secured credit cards

Roland Jefferson asked:




Despite all the publicity to the contrary, there are credit cards for bad credit holders and people are willing to pay a lot of money to get themselves more credit. Very few people with bad credit planned for it to happen, but illness or joblessness can quickly take a financial toll on them, leaving them choosing between eating, having a place to live and paying some of the bills.

Once they work through the circumstances that caused their financial downfall and they are beginning to work their way out of the jam, they may start thinking about getting their life back in order. The convenience of a credit card can help them rent a car, make purchases online, pay bills online or over the telephone and they miss not being able to have one. They hear about credit cards for bad credit and begin to believe it is a viable option to help rebuild their credit rating.

There are three basic types of credit cards for bad credit, unsecured, which typically come with a high initial cost and high interest; prepaid credit cards and secured credit cards. Of the three, a prepaid card offers the least opportunity to re-establish their credit rating, but they can offer the convenience they desire with usually less upfront costs.

High Interest Paid For Financial Sins

Secured credit cards are offered to just about everyone with bad credit and it is one of the easiest ways for someone to get credit cards for bad credit. Once all the initial fees are paid, the cardholder is required to deposit a minimum amount of money into an account with the financial institution. Their initial credit limit is based on the amount of the deposit, minus the costs associated with opening the account.

Once the credit cards for bad credit account is active, it is treated like an unsecured card with required payments as well as penalties for late payments and missed payments. Since many of the penalties are deducted from the account holding the deposit, the card’s credit limit is reduced by each deduction.

The credit cards for bad credit initial expenses are considerably higher and in many cases a majority of a person’s initial credit limit can be eaten up by application fees, program fees, annual fees and other charges. Interest rates are usually at the top end of the limit. Despite all the charges many believe it is a worthwhile investment in helping to rebuild their credit rating for the future.



secured credit cards

Tom Tessin asked:




There are just a small amount of major credit card companies and they are Visa, MasterCard, Discovery and American Express. There are large amounts of lending institutions that will issue credit cards and almost all of these companies offer the consumer the secured credit card. The major lending institutions are normally banks that are major banks with a large amount of depositors. That is why it is important that these banks make sure that when they issue credit that they will not only get all their money back but make a profit from the loan.

The bank lending institutions know that it is loans that help them to grow and prosper. It is important that they make a loan to someone who will make a great effort to pay back because soon the bank would go broke. The economy has changed the ability for most banks to make loans. That is why the secured credit card has become the number one credit card today.

The card provides a guarantee not only to banks but to other lending institutions like credit unions and private concerns. A consumer must make a deposit into the savings account of whatever lending institution they are getting their loan from to secure the loan. This is a loan so it does mean that you must pay them back with interest and perhaps a membership fee. You need to check and make sure that you are not paying back the bulk of your loan in order to be able to have some of the loan to spend. A great thing about this type of loan is the fact you can build your credit score so that someday you will be able to get an unsecured loan.

secured credit cards

Peter Gitundu asked:




After going through a rough time trying to settle your debts while fighting bankruptcy, probably the last word you want to hear is bad credit. However, you can easily and effectively rebuild your credit worth records and continue enjoying credit facilities as though you were never bankrupt. This could only be possible with a credit card for people with bankruptcy.

This will however require that you be a lot more careful by making sure that you pay all your bills on time and without delay. You may be wondering whether you should go for the secured or the unsecured credit card after bankruptcy. In as much as it is more advisable to go for the unsecured ones, not all of them will work in your favor.

Some of them may seem to charge attractive rates that you can afford and keep up with, but others have hidden charges behind them like account set up fees and commissions. Others will also charge you some fees once your credit worth increases and you are better able to run your finances positively.

It is important to note here that secured credit cards will never do you any good as far as rebuilding your credit is concerned. Remember that you are never discharged from your list of debts once you have filed for insolvency. Secured cards tell you that you can never get away with any unpaid debts and such creditors will b after your neck till you pay to the last coin. Be informed before making any choices.



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merchantcashadvance asked:

www.merchantcashadvance.com secured credit cards, online payment processing, fast loan, unsecured small business loan, merchant cash advance.

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