123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Business >> View Article

Secured Credit Cards Explained

Profile Picture
By Author: jonamuen123
Total Articles: 121
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Credit cards, loans, insurance policies have become the very essence of modern life. Growing up is not about enjoying the liberties anymore but about taking up the responsibilities that have been heaved upon every individual who wants to achieve higher living standards and status.
Each of these monetary adjustments or financial supports comes with its own pros and cons and its own deep end variety to meet the needs of variant consumers. Take a look at secured credit cards for instance. These are quite different from the regular credit cards and work similarly to secured loans.
What are Secured Credit Cards?
Consumers with bad credit record or those having no credit backing at all can go for secured credit cards. These cards are opened when a deposit is placed by the consumer, which acts as a security or collateral against the transactions made through the credit cards in the future.
In simple terms, secured credit cards are a good opportunity for people who have been failing in the past to maintain a commendable credit history. With the deposit being placed in a savings account, sometimes an interest ...
... bearing account, the credit card provider has the surety that the consumer won’t be able to default or file bankruptcy.
What Happens if You are Unable to Make Repayments?
In case, the consumer is unable to make minimal monthly payments against the purchases made through secured credit cards, the interest starts to build up on the balance and the institute can even use the deposit to pay off the debt amount, as a last resort. For this reason alone, secured credit cards are generally easier to open as your collateral stands as the best assurance that you are going to pay back.
How Can Secured Credit Cards Help Improve Your Credit Record?
Secured credit cards are usually opted by people who are sufferers of bad credit record and history as these don’t require a credit check but a deposit against the credit to be borrowed in future. So, here is how these credit cards can help you improve your credit record.
• A Chance to Improve Your Credit
Because credit cards and loans are not offered to people who have bad credit history, secured credit cards provide another shot at improving credit record. Since the main requirement of these credit cards is to make a deposit, mostly anyone who has enough cash to make a deposit can open this credit card and by managing the payments on this card, the consumer can improve his credit history once again.

• A Chance to Improve Your Spending Habits
The credit limit offered on secured credit cards is usually a percentage of the deposit that is made to the savings account. So the preset limit on the card cannot be exceeded. If bad money spending habits had brought you into trouble the last time you had a credit card, then the secured credit cards will help to keep your money spending in check.

Find more information relating to MoneySite Compare Car Insurance, and money here.

Total Views: 299Word Count: 505See All articles From Author

Add Comment

Business Articles

1. Finding A Trusted Sustainability Consultant In Abu Dhabi
Author: Agile Advisors

2. Iso Certification In Dubai – Advantages For Business
Author: Agile Advisors

3. Best Forex Brokers List | Best Broker For Forex Trading 2024
Author: Top Forex Brokers Review

4. Celebrate Achievements With Customized, High-quality Awards From Trophy Deals
Author: Trophy Deals

5. Is 100% Company Ownership Possible For Expats In Saudi Arabia?
Author: jodonjo

6. We Are Hiring: Senior Executive - Indirect Taxation In Gurgaon!
Author: tanvir Khan

7. Ceratec Tower 1o8: The Eventual Fate Of Business Greatness In Balewadi, Pune
Author: Tarun

8. Enrofloxacin Manufacturer: Swisschemie
Author: Swisschemie

9. Ultimate Guide To Hotels In Mussoorie: Discover The Best Places To Stay, Including Hr Hotels And Resorts
Author: Hr Hotels and Resort

10. How Quickly Do Fast Cash Loans Online Pay Out Cash On The Same Day?
Author: Lucy Lloyd

11. Leading Digital Marketing Agency In Hyderabad And Unlock Your Brand’s Potential With Sanbrains Agency
Author: Sanbrains Seo

12. Celebrate Success With Customized Awards From Trophy Deals
Author: Trophy Deals

13. Title: Choosing The Right Humidity Stability Chamber Supplier For Your Manufacturing Needs
Author: bio gene

14. Complete Guide To Studying Mbbs In Poland
Author: Mbbs Blog

15. What Is The Process For Locating The Best Lender For Short Term Loans Online?
Author: Robert Miller

Login To Account
Login Email:
Password:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: