With So Many Different Types Of Credit Cards Out There

Better Essays
With so many different types of credit cards out there today, it can be difficult to sort through them all. If you are looking for a new credit card, it is all too easy to become confused and overwhelmed. One type of credit card that is commonly offered to people with little or no credit is the bank secured credit card. Bank secured credit cards are a great way to raise your credit score, whether you have no had no previous credit in your name, or have had credit problems in the past. Even if you have previously filed bankruptcy, had judgments, or charged-off accounts, you could still qualify for a bank secured credit card. The main requirement is that you have an established checking or savings account in your name, with a positive…show more content…
This is an advantage for people who have abused credit in the past, as you are not able to over-extend yourself, as you so easily can with unsecured credit cards. So, if you allow your balance to dwindle, then you won 't be able to use your bank secured credit card until you make a deposit. Don 't make the mistake of thinking that you won 't receive interest and fees because you have this type of credit card, because that most certainly is not the case. Since a bank secured credit card is considered to be solely for those with poor credit, then you will likely be charged high interest rates, at least until your rating improves. If you don 't make your monthly payment, and the bank is forced to debit the money from your account, you can expect to also be charged an extravagant late fee, which will also come out of your account at the time of the payment. My advice to you is that if you have a bank secured credit card, make certain that you make that minimum monthly payment before anything else, so you don 't find yourself in a bad situation! If you are interested in establishing or rebuilding your credit, then a bank secured credit card could be answer you have been looking for. With on-time payments, you will increase your credit rating, which could lead to other, more lucrative offers of credit in
Get Access