If a user is facing financial problems, is having bad credit history and if many banks are not willing to give another chance to rebuild his credit history then, in such situation the best way is to use a secured credit card which is offered by many companies and banks.
In secured credit cards an applicant is required to submit some amount in his account compatible with the limit of credit. It is best way to redevelop your account history. Working of secured credit cards is same as normal credit cards. The deposition of credit by card holder against the credit limit is main difference. This amount is required by account holder just to have the security for payments of credit card as he is having a bad credit history. That is why they are called as secured cards. They are safe and secure for both parties the issuer and the applicant. Secure limit ranges from fifty to hundred percent of deposited amount. If the amount deposited is $1000 then the credit limit will range from $500 to $1000. The amount deposited will remain the account as long as the account holder uses the card.
Another difference of secured and normal credit cards is charges or fee charged by banks which you don’t have to pay in case of normal credit cards. Annual, processing charges are included in this fee. With secured credit cards we can improve our habit of timely payments. When ever you plan or start applying for secured credit card always have the surety that the creditor bank or company should one of those who report to some major credit bureaus. Other wise the card will not be help full to rebuild the credit.
APR (Annual percentage rate) also have to pay for your financial charges. The APR is actually the interest which varies as your amount in account changes. Secured cards have mostly high interest rates. And for your transactions and purchases credit report is maintained. In secured credit card credit bills are also sent to account holders on monthly basis. As the user has his own amount submitted in account so he will definitely avoid from borrowing a large amount from bank which he can not handle. Secured cards are not like prepaid cards in sense that they have an account and credit history is developed where as in prepaid cards no account is established and no credit history is maintained. Among the suppliers of secured cards American Pacific Bank Visa cards, Associate National Bank cards, Bank one Master and Visa cards, Bank popular cards, Capital one secured cards, First National bank in bookings secured cards are famous.
In Gold Visa Secured Card the spending range starts from $5000 and security requirement is $1000. Gold card is premium card and comes in Master card or Visa Gold cards. These are secured deferred payment cards give elasticity to mange and have control on spending limits provided by cards. Visa has twenty one thousand finance institutions which are its members and 1.2 billion people are its card holders. With Gold card getting cash from any where ATM is located becomes easy and convenient. Cash with drawing facility is available 24 hours. This card has many offers regarding travel insurance, reservation. The insurance policy is in situation like death, and disablements and also provides medical assistance. If you are executive accountholder of Gold Visa secured card then you can have free ECI membership. The executive club international is a club entertains its members by discounted reservations and exclusive services. And other services like car rental on discounts.
With standard Master secured card expense limit per month from $1000 to $2000 is achievable. Their benefits involve emigration, travel information free medical aid and insurances in situation of accidents. Easy access to cash any where, free travel insurance is also provided. MasterCard has one of the widest organizations which have a very big payment setup. This company has seven hundred million card holders and it has its offices in 220 countries. US Banks secured cards are also available with wide range of offers and benefits.
