Secured Credit Cards: Frequently Asked Questions
For people with low or bad credit scores, it can be difficult to qualify for a traditional credit card. This is the reason why credit card companies thought of offering secured credit cards. Below are some frequently asked questions about this type of credit card:
What is a Secured Credit Card? Unlike a traditional credit card, a person who wants to apply for a secured credit card is required to deposit a certain amount of cash that will serve as guarantee for the debts.
The security deposit will also determine the value of your credit limit. For instance, if you submitted $500 in your account. you may be given a $500 credit line. You may submit a higher amount than the minimum required deposit if you want to enjoy a higher credit limit.
After a few months, the bank may reward you for your good payment and raise your credit line without asking you for additional deposit.
Where can I get one? Many Issuers offer secured credit cards. You can go check their websites and compare the interest rates and fees each credit card company offers. You can also ask a bank representative for information.
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