Having bad credit history means that you may not get to choose right credit cards with low interest or right credit card to make regular purchases at gas station, grocery, traveling or renting a car. Using credit wisely is one way to go about getting the right credit card for you when you have a good credit score.
I like the idea of using secured cards when we have a bad credit, here is an article I found by Manish, which explains more about how to choose a secured card when you have a bad credit. Please read below for details.
Secured credit cards are a type of credit card which is issued to the customer on the basis of collateral that is pledged by him to the bank. This collateral is usually taken in the form of money. Secured credit cards for bad credit are used when the credit background of a person is not so good.
A secured card has a particular amount of credit limit beyond which he can not use the card. This is usually in correspondence with the deposit amount. This is a card which is easy to get as you are pledging money. However, if your credit score is very bad they may allow a limit of only half the deposit money. If you are not able to pay the amount back to the bank, the deposit money that is held by the bank will get transferred into the possession of the bank.
Secured cards collect a fee from the card holder and many of us are not aware of this. The fee collected on an annual basis will be deducted from the deposit money. Some banks charge high fee which brings down your ability to take credit as your deposit is also decreasing.
The one main advantage of using a secured card is that you will get a chance to re-build your credit score. This is a way to prove that your spending habits have improved. Therefore, you have to be careful with the use of your card. Do not spend on items which are of less importance. Another significant task is that you have to get your creditor report to the bureaus. This is because you would not get back your credit score if they are not informed of your timely payments.
Thus, secured credit cards have a lot of advantages to offer the customer.
To learn much more about credit cards, visit http://a2zcreditcardz.com/ where you’ll find this and much more, including Secured credit cards
About the Author:
Since retirement I have traveled to every city in the United States over 10,000 in population. I still travel quite a bit. In retirement, I run the Online Think Tank and do a “little” writing as you can see? In my younger days I was a runner “miler” in track. I have dabbled in politics, been involved in philanthropy, community groups & raised money for the common good; and committed to a lifetime of learning.
Did you notice that Manish had a link titled Credit Cards For Bad Credits? I didn’t check his site but maybe he offers good prices.
Anyway I hope you liked this article. You can also read our other articles if you need to find some good credit cards for bad credits.