As a point of entry, two categories of people will benefit hugely by using secured credit cards; those planning to repair credit and the newbies to credit. Some people refer to secured credit cards as last resort but there are actually immense benefits offered. From the name, you must already have a clue to what we are talking about here; a credit card that a lender secures with a collateral. In simple terms, you deposit a certain amount and the creditor lends you credit in like sum. You will wonder why you will want to have such in place? No credit means bad credit score remember? But with a secured credit card you are playing safe and smart.
A survey of most lenders shows that the opening deposit starts between $200 to $500, in any case you default in paying your credit, the deposit will be used to offset such. You should know this though, your credit limit will be increased by the lender in the long run if you are not late with your credit payment. With a regular payment reported by the credit card issuer to the credit bureaus, you are on your way to having a positive credit score that can allow you have more credit options.
In any case, you have no history or bad credit rating, secured credit cards have it advantages which you can benefit from. One reason why many people suggest secured credit cards is the ease of your rebuilding your credit options. Yes! Secured credit cards is a sure way of going from the negatives of credit score in order to be eligible for traditional credit options later.
So also, if you are planning to cut low on your spending, secured credit cards as provided by Fresh Start Credit Repair allows you to have control over this. One aspect of secured credit cards is the lower spending limit, you will have a spending limit on your secured credit cards that prevents you from impulse buying and unnecessary spending. You must also know that secured credit cards have lower fees. Unsecured cards often have a double of the fees of the secured credit cards, you will rarely be charged at the standard credit card rate.
One other sweet benefit of secured credit card you will not believe is the interest rate. Some lenders allow you to earn interest on your deposit for secured credit cards, this alone should cover the low fees that will be charged.
In essence, the ultimate aim of using a secured credit card is graduating to the unsecured traditional cards. You will end up having a traditional credit line with regular payment of your credit as at when due. With a secured credit card, you will have more spending power, this can also be useful in any case of emergency as you can rely on the cards without hurting your credit score.
At Fresh Start Credit Repair, we are poised at helping your repair your credit and providing you with a secured credit cards. Contact us today, we are just a call away.[contact-form][contact-field label=’Name’ type=’name’ required=’1’/][contact-field label=’Email’ type=’email’ required=’1’/][contact-field label=’Website’ type=’url’/][contact-field label=’Comment’ type=’textarea’ required=’1’/][/contact-form]