About- Secured- Credit- Cards

Document Sample
About- Secured- Credit- Cards Powered By Docstoc
					Visitor # 429

Topic:

Every time you apply for a credit card or loan, each single inquiry from
that lender will be recorded on your credit report making too many
inquiries is a signal to a potential lender that you are a risky customer
just shopping for credit and not for real funds.
True or not, a secured credit card may be the right type of credit card
for you because it is secured by a deposit account owned by the
cardholder. This deposit consists of 100% to 200% of the total amount
of credi...



Tags: finance,credit,card,secured,loan




Every time you apply for a credit card or loan, each single inquiry from that lender will
be recorded on your credit report making too many inquiries is a signal to a potential
lender that you are a risky customer just shopping for credit and not for real funds.
True or not, a secured credit card may be the right type of credit card for you because it
is secured by a deposit account owned by the cardholder. This deposit consists of
100% to 200% of the total amount of credit desired, that is held in a special savings
account.
However, cardholders of secured credit cards still may expect to make regular
payments as they would with any other regular credit card, with the only difference
being the card issuer has the option of recovering the full cost of the purchases paid to
the merchants out of the deposit if the cardholders does not pay their credit balance in a
timely manner.
Most entities issuers of secured credit cards consider that if the cardholder does not
make the required payment, the account must be paid anyway and before the security
is released instead of taking the money from the security to pay the balance due. This
is a risk for the cardholders because their card is not cancelled and the balance does not
set off the deposit.
It is sad how easy it is to find that such advantage at first glance is nothing more than
just a financial move to let interest to continue, accumulating on the unpaid balance for
considerable periods of time which total charges often exceed the original deposit and
leading the cardholders not only to lose their deposit but after that with additional debt
that may become a nightmare to pay.
This is not a threat but a condition usually described in the secured credit card
agreement of some credit institutions that most of the time is ignored by the
cardholders, or something that they do not read, or do not understand clearly, when the
account is opened.
Understanding all the terms of the agreement and not fearing to ask when in doubt is
important because secured credit cards are the most viable option to allow individuals
with poor credit, bad credit history or no credit history.
In fact, secured credit cards are the best option for rebuilding or cleaning up your credit
history report, particularly if Visa or MasterCard endorses them, but always bearing in
mind fees charged for secured credit cards more often may exceed those standard fees
charged for ordinary non-secured credit cards.

				
DOCUMENT INFO
Shared By:
Stats:
views:3
posted:8/31/2010
language:English
pages:1
Description: AmazonHi, eBayHi, AmazonHi.com, Free Shopping, Free Shipping, Christmas Deals, Offers, Secret Coupons, Incentives, Amazon, eBay
AmazonHi Store AmazonHi Store http://amazonhi.com
About AmazonHi.com, eBayHi.com, Free Shipping, Free Shopping, CashBack, Cash Back, Coupons, Discounts, Codes, Games, Electronics, MP3, Downloads, Germany, Japan, France, United States, United Kingdom, Canada, Suomi, Sweden, Norway, Mexico, Russia, China, Internet, Incentives, Shopping, Online Shops, Stores, Apparel, Toys, Grocery, FREE Discounts, Free Coupons, Trial Offers, AmazonHi, eBayHi