FAQ Table of Content
Whether it’s your first time taking out a credit card, or you’ve done it dozens of times before, the whole process tends to get confusing. There are many different cards that you can choose from, and each of them has special features that are designed for different purposes.
You need to take a lot of things into consideration when choosing a card that suits your needs. It all depends on so many factors, such as your credit score, what you intend to use your card on, or your debt-to-income ratio. Market Pro Secure® is here to keep you informed and help you make this vital decision.
We offer detailed overviews and comparisons of credit cards, banking and insurance services, and more. You can gather the most basic information about credit cards through our extensive FAQs section here, and feel free to contact us should you have any further questions.
Secured Credit Cards
If you want to build good credit, the simplest way to do it is to get yourself a credit card. The problem here is that you usually need to have a good credit score to get a card. If you’re feeling confused, you’re not the only one.
Secured credit cards are your answer if you have a particularly short credit history, or have bad credit. If you’re not familiar with them, you’ll find that some of the frequently asked questions about them are answered below.
You get a low credit limit (set by your security deposit), and you accrue higher interest rates if you don’t make full, on-time payments every month. You can increase your credit limit by making additional deposits, or your issuer may choose to increase it after a particular period of your good payment behavior.
Your security deposit is refundable, but you’ll get it back in full only if you always provide full on-time payments. You can get your refund once you choose to graduate to an unsecured credit card and close your secured card, provided that you’ve paid off your balance in full.
Secured credit cards are cards designed for building or rebuilding credit. They differ from regular cards in that you must make a deposit (refundable) to open your account, and there’s usually no credit check.
By making all your payments on time and in full, you show that you’re a responsible, creditworthy borrower. Your good payment history is reported regularly to the major credit bureaus, which put your good behavior in your credit report, thus raising your credit score.
It depends on your secured credit card issuer. Each has different minimum requirements for the deposit, but the lowest amount is $49. Since the deposit determines your credit limit, choose the amount that will allow you enough flexibility, but be sure you can afford it.
The lowest deposit you can make is $49, while the highest is $10000. Most of the issuers allow you to make a deposit of up to $5000.
It depends on how big of a deposit you want to make. Different issuers have different minimum and maximum deposit requirements. It also depends on the annual fees (ranging from $29-49), but there are plenty of cards with no annual fees.
You can get a secured credit card if you have a bad credit score (to improve it), or no credit history at all (to establish good credit from scratch).