Do You Need A Secured Card?
–by Priya Jestin, Staff Writer
I may not be too off the mark if I said that most of us don’t know much about secured credit cards. Probably we don’t consider it too important or we don’t realize the necessity of knowing the difference between secured and unsecured cards.
The big difference between a secured credit card and an unsecured credit card is that a savings deposit serves as collateral for a secured credit card. So, if you need a secured credit card, the first thing you need to do is deposit money into a savings account. A secured card is good for people who have a less than perfect credit history. As you pay your bill on time each month, it helps you build a positive credit history.
When shopping for a secured card, you must ask the issuer to explain their policies regarding credit bureau reporting. When the bank reports on your positive payment record, it helps build a good credit history with the credit bureaus.
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December 19th, 2006 at 7:16 am
A secured credit card may be better than an unsecured credit card. But is there any gurantee that the credit card company will not manipulate it to their own benefit?