Have you improved your credit with a secured credit card?
Answers:
Well, secured credit cards are a great way to get you feet off the ground if your trying to improve your credit. However because it is secured, it's looked upon a little different and that does show on your credit, you should keep it long enough just to qualify for an unsecured card. If you make your payments on time and don't go over your limit, it should raise your score about 50pts or so over a 6mnths to 1yr period.
A secured credit card requires that you deposit money with the issuing bank, and the bank will issue a credit card in the same amount for your use. Secured cards are guaranteed to be approved, because the bank has your deposit money in case you do not pay your balance. A secured credit card for bad credit operates much like a regular credit card. You receive a monthly statement, and you pay your minimum monthly payment or the balance in full each month. You are charged an interest rate, annual fee and possibly other fees for a secured credit card account.
Be aware that with a secured credit card for bad credit, your charges are not deducted from the deposit you have with the issuing bank. The bank is simply holding your deposit in the case that you default on your credit card balance. You must pay your monthly payments, and owe the bank the balance that you have charged on the credit card. You cannot refuse to pay simply because the bank is holding a deposit without further damaging your credit. Read more from: http://www.credit-card-gallery.com/secur...
The answers post by the user, for information only, BAnswer.com does not guarantee the right.
More Related Questions and Answers...