Getting Secured Credit Cards – A Solution For Those With Debt Trouble

It may still be a relatively new product on the market, but secured credit cards are gaining wide recognition quickly, and with a great reputation. If you have not looked into one yet, or don’t know much about them, this is your perfect opportunity to learn.

 

We all love the convenience of a credit card such as instant decision credit cards, yet the interest rates and account fees can be just too much for most people who already struggle with existing bills. And what about those who don’t have a perfect credit score? Should they be at a disadvantage even more so by being denied a convenient way to pay for necessities? Over recent years credit cards have become harder and harder to get. The large limits we were offered 10-15 years ago are just unheard of now. All these situations forced the banks to come up with a better solution for those people who didn’t have a lot of money to throw around and for those people who were trying to fix their past financial disaster but still needed the convenience of a credit card. The solution was secured credit cards.

 

These unique credit cards operate just as a credit card although they are not spending borrowed money. They are the perfect combination of a debit and a credit card. Once you have the card you simply put as much as you want into the credit card account and away you go. You cannot spend more money than you have deposited. It is for this reason that the banks are able to offer these cards to more people than they can offer credit too. These secured cards pose very little risk to the bank or lender therefore even those with poor credit should have no trouble obtaining one. Also consequently fees are at a minimum.

The want (and need) for a credit card is not only a luxury, but often a necessity. In today’s world there are a lot of places where credit card is the preferred or only form of payment. So many of us save money by shopping online, or now simply have a new world of shopping options available to us online. How else can you safely and quickly pay for purchases online or even over the phone than with a recognized credit card? With a secured credit card! And even though it provides the utmost convenience there is still no risk to overspending because you can only spend what you have deposited. What’s better is because it is your money, and not the banks, you are not charged interest on your purchases or cash withdrawals from ATM’s.

 

There are a couple of important points to note before you run off and apply for a secured card. This type of prepaid card is an industry that is largely unregulated. So unlike standard issue credit cards the banks and lenders don’t have hard and fast rules they have to stick by. This has seen some rouge banks and lenders charge unnecessary and unfair fees to customers for these cards. The only way to ensure you are getting a good deal from your provider is to shop around first. Don’t be in a hurry and choose the easiest credit card to get. By comparing at least three different secured cards you’ll quickly know what is standard and what is not. Make sure you ask a lot of questions about the use of the card before you accept it and ensure you’ve read all the fine print in the terms and conditions

Secured credit cards may be suitable for you, or someone you know. It is a great idea for young adults starting out managing their own finances as it seriously reduces the risk of overspending and being subject to high interest rates. Poor money management at a young age tends to lead to large amounts of debt into adulthood which can be very difficult to get rid of. It is also a great idea for anyone who is trying to tighten the purse strings and spend less. Those already struggling with overwhelming bills and debt can have the convenience of a credit card without the temptation of one. For those that do a lot of shopping online this is an ideal way to pay while minimizing the risk of overspending and fraud from under protected websites.

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Click here for a list of ALL our recommended Secured Credit Cards

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