Now that you've heard about secured credit cards in our previous articles, you're probably interested in getting one or at least to get a list of few companies to go for. Like we've outlined previously, there can be some secured credit card deals that you want to pass over, mainly because the fees are too high or the interest rates aren’t too favorable. Sure you're in a credit repair situation, but that doesn't mean you should settle for something less than decent. Your secured credit card will serve as an essential tool for your credit repair and to get you back into shape until you can get back your unsecured credit card privileges.
The way you should act with secure credit cards is how you want your creditors to perceive you with an unsecured credit card. In other words, make your payments on time, and pay more than the minimum payment. Consider your secured credit card as a test and bridge to getting back in the real world of unsecured credit cards. Act responsibly and avoid making big purchases and small repayments. Also, just like when you shop for regular unsecured credit cards, go for trusted companies for secured credit cards that offer good deals regarding fees and interests. Wells Fargo and Orchard Bank are two names that you should remember in the secured credit card department, so definitely check on the offers that they have for you right now.
Read the conditions carefully. Some secured credit cards can be transferred to unsecured ones and others can not. It's up to you to put together the best plan for your credit repair. Read a few reviews online of some specialized sites and even some people who have used the cards recently. Gathering good information is essential to making the right choice for your credit repair.
This is an extra component which you have to take care of when it comes to secured credit cards. The deposit you have to pay generally varies from 50% to 100% of the credit limit. The planning required for a security that a secured credit card requires generally implies that you put some money aside monthly.
How to apply
Fortunately, the application for secured credit cards is pretty simple and can be done on the web, by mail and sometimes even in person if you wish. If you want to get it as fast as possible, going online is probably your best bet and you will then be asked to make your initial deposit before you can use it.
And lastly, a word about credit checks might be useful. You will probably be happy to know that contrarily to unsecured credit cards, secured credit cards don't generally require a credit check. This tool was made for credit repair so you are given a chance to prove yourself. In the case of denials, they generally happen when you've recently entered in to a bankruptcy filing that has not been finalized or a recent non-finalized divorce, etc.
So in the end, make the most out of this secured credit card for your credit repair and show good management all throughout your time with it. This will signify that you’re definitely on your way up with your credit repair and that if creditors trust you, only good things will come out of it.