Here are features that you should look out for in secured credit card programs:
A reasonable security deposit.
Always remember that secured credit cards will always come with security deposit requirements. After all, such feature guarantees that you can really pay back the expenses and bills you will eventually charge on your card account.
But that’s not the only function of your security deposit. It also determines the spending limit or cap that will be imposed on your transactions. The limit could be 50% of the deposit you have provided or even equal to the actual amount you have submitted to your chosen card issuer. Still, there are credit card firms today that can provide you with a spending cap that is twice the amount of cash you have deposited, although such offers can prove to be quite rare.
Now, if you’re looking forward to using a credit card that carries a good-enough credit limit; be prepared to submit a substantial deposit to your target credit card agency. However, if you wish to use a secured credit card that will help you curb your spending habits then, we advise you to look for a line of credit that comes with the lowest possible security deposit requirement.
An affordable APR, or annual percentage rate.
Although secured credit cards, in general, carry much higher rates of interest than most unsecured and traditional lines of credit offered to consumers with good credit standing; still, it is possible to score an affordable interest rate. To do this, you should take the time to compare various card programs.
One of the best ways to succeed in this matter entails visiting sites that offer card comparison services. After all, by employing the simple and convenient tools provided in such sites, we guarantee that you can soon find a card program that will not just suit your needs and spending habits, but also one that won’t be too burdensome to your pocket.
Minimal fees and charges.
A lot of credit cards today, even secured ones, tend to come with fees and charges. For instance, aside from the security deposit, aspiring cardholders, like you may also be asked to pay annual fees, transaction and finance charges, as well as penalties for payment delinquency, for maxing out your credit card, and for other serious violations of your credit agreement.
So, to find the best card program, you should never fixate on the interest rate alone. You should also think about the fees and charges you will have to pay before and while using your secured credit card.
A good working relationship between the secured card issuer and the three credit reporting agencies.
Keep in mind that the time, effort, and resources you will invest in jump-starting or in rebuilding your credit history will all be in vain if your chosen credit card firm does not submit timely reports of your transactions to the major credit bureaus. So, while scouting for potential issuers, you should carefully consider how closely they work with Equifax, Experian, and TransUnion. That way, you can assess if the firm can really help you out in realizing your goal of building or re-establishing your credit profile.