5 Benefits of Getting a Secured Card
Secured cards come with some excellent benefits that you should consider.
Easy Approval
It’’ very easy to get one of these cards – much easier than getting a regular credit card. There are usually no credit checks, and the process of approval is very quick and simple. All you need to do is submit an application, and provide the necessary security deposit.
Building or Rebuilding Your Credit Score
If you’re getting a credit card for the first time, or you have bad credit, a secured credit card can help you build or rebuild your credit score. These cards are designed for people with bad credit or no credit history.
Low Fees
Contrary to popular belief, secured credit cards charge very low fees. There are initial application and processing fees, and there can also be annual fees, which are usually very reasonable. However, there are plenty of cards with no annual fees whatsoever.
Earning Interest on Your Deposit
There are secured credit card issuers that enable you to actually earn interest on the deposit that you must put down to open your account. This happens if they keep your deposit in an interest-bearing savings account that they tie to your secured credit card account.
Reporting Your Credit History to the Credit Bureaus
If you have a debit or prepaid credit card, you won’t be able to build or rebuild your credit score, because the major credit reporting agencies won’t know anything about your payment activities.
Secured credit card providers report their users’ credit history to the major credit bureaus. Not all of them report to all three bureaus, and some don’t do it regularly, so find an issuer that will send monthly reports to all three.
