Secured Credit Card
First Published: January 6, 2010 ADawnJournal.com
A secured Credit Card is a type of credit card for which you are required to deposit (meaning you are securing this money) cash money with the credit card issuer. This cash deposit becomes collateral and acts as your credit line or credit limit. If you have no credit history, want to rebuild credit history, or new to the country, a secured credit card can help you build a positive credit history.
Not all financial institutions offer secure credit cards. There may be many terms and conditions attached to secure credit. Do your research and make an informed, educated decision before obtaining any secure credit card. Here are some points to keep in mind:
· Look out for higher interest rates and annual fees. Research and shop for the best deal you can get. Use these keyword phrases to research for deals: “secure credit card Canada”
· Your deposit should earn interest the same way as a savings account or a GIC (Guaranteed Income Certificate).
· Beware of secure credit card scams. Do not accept any offer from non- recognized brand names. Beware of any secure credit offer from a foreign country.
· You can also try to apply for a retail store or gasoline company credit card.
· Ask at your local bank if they can arrange a credit card for you. Often your local bank can offer you a credit card as part of a package deal.
One you have obtained a secured credit card, pay off your balance each month in full and that should start building a solid credit history for you. Once you are able to obtain a regular credit card, cancel your secure credit card as there is no point in keeping it anymore.