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Credit cards can be both a curse or a blessing. Knowing where to look is the key. We have found the place for you to go to.
Secured Credit Lines and Secured Credit Cards
Although secured and unsecured cards can be used to pay for goods and services, a secured card requires that you open and maintain a savings account as security for your line of credit, while an unsecured card does not. This is why an unsecured card is the more popular choice, even though they are more difficult to acquire than a secured card.
The savings deposit for a secured card typically ranges from a few hundred to several thousand dollars. Your credit line will be a percentage of your deposit - usually 50 to 100% - and a bank will pay the interest on your deposit. With a secured card, you will also pay application and processing fees. Before you apply, be sure to ask what the total fees are going to be and whether or not they will be refunded if you are denied a card.
A secured card usually requires an annual fee and has a higher interest rate than an unsecured card. This is why you should really only look for a secured card, when all options to getting an unsecured one have been exhausted.
Common Questions
- Can I apply for a credit card?
If you're 18 years of age or older (the age limit might be lower in some states) and are a U.S. citizen, you...more - Do I have to have a bank account to get a credit
card?
In most cases, credit card companies won't consider issuing credit to someone who doesn't have...more - Is it necessary to have a bank account with
the bank that issues the credit card?
Not in most cases. As long as the credit card issuer can determine your credit worthiness, it doesn't matter where your...more - Can I apply for more than one credit card at
a time?
You can apply for as many credit cards as you want, but you should be aware that multiple credit card applications can...more - What about bad credit?
There are lenders who specialize in providing credit cards for those with bad credit. Commonly known as secured credit cards, you might need to...more
