For anyone looking to improve their credit score, a secured credit card is an outstanding way to do it. Let’s face it, in today’s world having a good credit rating is incredibly important. It affects everything from a person’s ability to buy a home, get a car loan, and even, in some cases, to find employment.
A secured card can help the consumer raise their credit score by showing that they are using the credit extended to them responsibly. The issuer reports payment activity to the three major credit bureaus. Over time responsible management of the account will be rewarded by improved credit scores.
This, of course, presupposes that the individual has a poor credit history to begin with. If in fact the consumer has a strong credit rating then they will not need a secured card. In addition, a secured credit card can also be used to establish credit as well.
Basically the way the card works is that the card holder is required to make a deposit which is more or less the same as pledging collateral. If payments are not made on time, or the terms of service are violated in any way, the cardholder vclub new domain will forfeit some or all of that pledged money in the form of late fees and penalties.
Account holders that use their credit wisely will be rewarded with increasing credit limits. In addition, as stated above, they should see an improvement in their credit scores. Eventually, the goal should be to get rid of the secured credit card and replace it with an unsecured card that they now qualify for.
It is important to make clear that they should not be mistaken with a debit card. Debit cards do not report to credit bureaus because they do not issue credit. They are strictly a way of accessing money through a checking account.
A quality comparison website is an excellent place to search for secured credit cards. Leading issuers include Public Savings Bank, New Millennium Bank and Applied Bank.