Well, a lot of people do not know about secured credit cards. The most popular credit cards are the unsecured cards which people just know as the “credit card”. With the economy in recession, people are questioning what the credit card has done to them. Oprah, Ellen and a lot of major shows have hosted financial analysts that have blamed people from spending way beyond their means. There are tons of stories about people having more than ten credit cards and over 100,000 dollars in debt from these cards alone. People just did not have the self-control to spend only what they needed and what they could afford. This is because credit card companies encouraged higher limits and lower rates and what not. Secured credit cards will not allow this to happen–it is basically impossible with secured credit cards.
There has been a sharp decline in the interest of secured credit cards over the past decade. Since the majority of the world was in an economic boom, it seemed like people could afford a car twice as expensive as their budget and a house thrice as expensive. Not to mention, people tend to eat out a lot more, and in more expensive places–using the credit card to amass everything. Well, now look at everything–banks have closed down, people have lost jobs and the economy has turned inside out. With a huge credit limit backing them up, people could not help but to buy and buy and buy.
Secured credit card works on the basis of collateral. You would need to deposit something in first before you would be able to use the secured credit cards. The limit for secured credit cards is either exactly what you have deposited or an amount slightly higher. This means that if you ran out of deposit, you cannot use the card anymore. People would have NO choice but to not buy anything. As mentioned, over the past 8 -10 years, the interest in secured credit cards has fallen–from 122 million offers per year in 2001 to around 1 million as of late 2008. However, there are signs of a very slight emergence of interest in secured credit cards. A lot of websites are reporting increased number of clicks on secured credit card advertisements- and not just a small increase, but over 27% more clicks have been recorded and reported.
With secured credit cards showing signs of reinvigoration, it is time that we take a couple of minutes to actually read all about them. This site offers information, all the most important details, on secured credit cards. If you have grown up without knowing what secured credit cards are and you would be graduating from university in a couple of years- you might want to read this. The information is free and would prove useful in the future–there is nothing to lose, only information to gain.
So have a peek…
There are many offers described as the best secured credit card online. The better your credit rating and ability to pay off previous bounces will decide what offers you receive as you look for a secured credit card. Your ability to apply for the best offers is normally dependent on the amount of the cash deposit you added to the account. Each credit card supplier use different means to decide on the monthly interest rate applied or membership charges.
Some of the best secured credit card offers now are from companies like, Capital One, Wells Fargo and Orchard Bank. This can change at any time as new offers are placed by these or other lending institutions. Shop around to find the lowest interest rate and perhaps free annual membership. The marketing for banks to supply the best secured credit cards memberships at any moment can add up to large savings when you sign up.
If you have never established your credit before then these offerings might be your best first step. You will be using your own money as collateral against your charges. This can help you build your capacity to make monthly credit card charges and pay them back as you become established. If you are rebuilding your credit, then again this is a major first step to prove your credit worthiness and regain a more positive credit rating.
There are several smaller banks or less well-known financial institutions with interesting offers for the best secured credit card online. You only need to do the proper research to find the best offer at any given time. Make sure you find an institution that can meet your needs with the extra charges added to your use of the credit card. Your alternatives to make changes will grow overtime as you prove your ability to control your finances in a reasonable manner.
No to credit card issuing banks are the same. Each one will have special offers or perks attached to your membership. Make a personal note of these differences as you shop around to receive the best offer possible. And you compare the best secured credit card side-by-side you might find differences that meet your personal needs and supply you with the greatest benefits. It’s an open market and laws are changing almost daily about the use of credit cards. Find one that meets your needs and build a new credit rating as you use your credit line.