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Secured
Cards Are
Great for Everyone Including
Parents, Students,
Bad Credit, or No Credit
Show
you are creditworthy with secured credit cards. If
you are a student, have bad credit, or have no credit
at all, you should consider secured credit cards. They
work just like any other regular credit card and allow
you the freedom to do things such as make purchases
online and rent cars. (Yes, you can rent cars with
secured cards.)
You
can also prove your creditworthiness with a secured
credit card because some lenders will report your timely
payments to the credit bureaus. As long as you intend
to make your payments on time, this is a great feature
for students, people with bad credit, and people with
no credit at all.
Each
secured card offers guaranteed approval and come with
low secured card rates. Once you receive your new card,
all you have to do is make your payments on time each
month. You should also maintain a balance less than
your credit limit too. This practice helps you prove
to new and future creditors that you are indeed creditworthy.
After
comparing hundreds of cards offered by well known (and
not-so-well-known) credit card issuers, the ones on
the right are our top choices for secured credit cards.
You
can begin to turn your bad credit into better credit
with a secured credit card with guaranteed approval.
Follow these three simple rules:
1.
Maintain a balance less than your credit limit.
In other words, don't "max out" your credit
card. If your credit limit is $500, try to keep your
balance at $250 or less.
2.
Pay your credit card bill on time every month.
If you are more than 30 days late with your minimum
payment, that late payment will be reported to the credit
bureaus and will negatively affect your credit score.
You may also have to pay a higher interest rate as a
result of your 30+ day late payment.
3.
Pay all balances down to zero every few months several
times a year. When you make purchases, take
a few months to pay them off. Then once your balance
is paid off, make more purchases and take a few months
to pay them off... and keep this cycle going.
This process shows the credit card companies that you
are creditworthy. You may be rewarded with lower interest
rates, higher credit limits, and a higher credit score.
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