What Is A Secured Credit Card?

What's A Secure Credit Card

A secured credit card is when you apply for a certain credit card that the credit card supplier requires you to open up an account with them and what you do is deposit an amount of money into it, so that there is sufficient funds on your card, this means that really you can't get any credit on your cards that go over your account balance, secured credit cards may often be called a debit card for this reason.

Essentially the cash balance you pay into the account acts as a security measure for the credit card supplier and the amount of credit is relatable to how much you place in your account. Secure cards of this type are very restrictive, but they do have a use for trying to cut credit card debts for those who just seem to fall badly with this kind of debt.

Credit card debt, many know of family members or friends who have been struck badly by debt of this kind, because it's all to easy to bring out that credit card and pay for goods over the counter or over the phone, in fact it's a lazy way of paying for stuff, when all you have to do is go to your local cash machine and cash some money out and then pay for it, or simply use your bank card at the till.

People with common sense know not to go mad with credit cards or totally avoid them altogether, because it all depends on the amount of interest you could get charged at the end of a month. The secured credit card works on many levels whereas the unsecured credit card does not, it controls spending much more and can also help to improve your credit rating over time too.

A secured credit card is a good way of planning how you spend too and the cards are east to apply for, with no real proper bills like the unsecured cards, but rather a more focused way of spending the money you have, but for a greater goal of keeping your credit rating looking quite healthy, many people prefer the secured option over the unsecured, because it seems less hassle and the chance of rejection is quite low, because you are placing your money to work for you when you need to buy something with your secured credit card.

Many people don't like to be in debt and that's why they choose a secured card to pay for goods, although some could just save up money and pay for stuff that way, butI guess you have to have your options open at all times and having a good credit rating is better than not having any details on your credit rating.

Secured Credit Card

What is a secured credit card?    Image source - www.q80s.com
What is a secured credit card? Image source - www.q80s.com

Secured Credit Card

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