Secured credit cards may be an answer for those with little or no credit that can’t get a normal credit card at a bank. With a secured credit card is easier. You can determine your credit line by depositing money into an account. This way your own money provides the “security”. If you put, for example $500 into an account that means that you have a $500 credit limit. The money has to remain into the account and as long as they do you can use the credit card for convenience.
This way you won’t amass a huge balance every month because if you set a limit at a certain amount of money, that is all that you can charge each month. More than that, this encourages you to pay off the balance each month and helps develop good credit card habits. The down side is that you have to pay a rather high percentage rate on balances and an annual fee of around $60 or less.
If you want a secured credit card you can ask at your bank for information. If they don’t provide this kind of service they may direct you to other banks that do. Credit unions may also offer secured credit cards. You may also search the internet for testimonials, to see what others say about their experience with this type of cards. One recommended site is the consumer’s affairs database. You can search the name of the company or just secured credit cards. Don’t mistake these credit cards with an advance fee credit card. These companies charge a large upfront fee for carrying their cards. Unlike secured credit cards, which is backed up by your own money and such a fee isn’t necessary.
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