There are three questions that you absolutely have to ask yourself before you apply for secured credit cards. If you apply for a secured card without asking these three questions, you may find yourself seriously regretting it.
Interested in learning more? Read on…
1. Is the Interest Rate Reasonable?
If you’ve decided to apply for secured credit cards, chances are your credit has some issues. Don’t let this fool you into thinking, however, that you deserve to pay high interest rates.
Many of today’s secured credit cards offer very reasonable interest rates (some as low as ten percent).
If, when you go to apply for secured credit cards, you see that a company wants to charge you in excess of 19 or 20 percent interest, take your business elsewhere. Don’t let the company take advantage of you. You can do much better with a different secured credit card company.
2. Are There Any Fees?
When you apply for secured credit cards, you’re likely to run into some companies that are going to charge you an annual fee.
In some instances, this is okay. An annual fee of less than $60 is not unreasonable. That being said, do not pay more than $60 in annual fees for a secured credit card.
When you get a secured credit card, you are securing that line of credit vclub new domain with a savings account. This takes most of the risk out of the equation for the creditor.
Do not let the creditor charge you exhorbinant fees that you shouldn’t have to pay. Only apply for secured credit cards with reasonable fees (or better yet, no fees at all). They are out there.
3. Will Your Credit Line Ever Become Unsecured?
When you apply for secured credit cards, make sure you only apply with companies that will reward you for a good payment history. Check to see what the credit card company’s policy is on increasing your credit limit (without increasing your security deposit).
How? All you need to do is ask.
If you’ve paid your statements on time for twelve months without ever making a late payment, the credit card company should be more than happy to increase your credit limit, eventually providing you with an unsecured line.