Q&A: Secured credit cards?
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Q&A: Secured credit cards?

Question by ~*BS~MRA~Girl*~: Secured credit cards?
Do secured credit cards improve your credit?

Best answer:

Answer by gvh
I think they do if you pay the card on time everytime.. close will not cut it..continue to ask for a larger line of credit but “do not use it” available credit is one thing they look at. Yo u don’t have to charge big monthly bills.

Add your own answer in the comments!

Comment (6)

  • Only if they actually report it to the credit bureaus. Ask them about it first as legally they have to give you an honest answer. But they love not to report it as they love to keep you as a customer forever.

  • ntwrkadmngrl - January 27, 2014

    You have to find out if they are reported to the 3 credit agencies. I have a secured bank credit card and it does report. A smaller store credit card like Penny’s or Target most likely does not. You need at least 3 kinds of credit (car loan, mortgage,credit cards) and timely payments REPORTED to the agencies in order to see your score climb. A secured card is essential in order to raise that score-just make sure it is from a large bank and it reports.

  • I’ve heard that they do, at least that’s what my bank manager told me when I used to work at the bank.

  • KingGeorge - January 27, 2014

    Yes, it is absolutely the right way to build your credit or improve your credit.
    Here is some good high-level information.

  • kassy kemp - January 27, 2014

    Secured credit cards can be an effective way to build or re-establish your credit history. However, some marketers of secured cards make deceptive advertising claims to entice you to respond to their ads. Here are some things you may wish to keep in mind. Secured and unsecured credit cards can be used to pay for goods and services. However, a secured card requires you to open and maintain a savings account as security; an unsecured card does not. The required savings deposit for a secured card may range from a few hundred to several thousand dollars. The amount you can charge on your card is a percentage of your deposit, typically 50 to 100 percent. Usually, a bank will pay interest on your deposit. In addition, you also may have to pay application and processing fees — sometimes totaling hundreds of dollars. Before you apply, be sure to ask what the total fees are and whether they will be refunded if you’re denied. Typically, a secured card requires an annual fee and has a higher interest rate than an unsecured card. Deceptive ads often leave out important information, such as: The cost of the ‘900’ call — which can range from $ 2 to $ 50 or more -for which you are billed just for making the call; The required security deposit, application, and processing fees; Eligibility requirements like income or age; An annual fee or the fact that it has a higher than average interest rate on any balance. If you’re considering a secured card as a way to build or re-establish a credit record, make sure the issuer reports to a bureau. Your credit history is maintained by companies called reporting agencies or bureaus; they collect information reported to them by banks, mortgage companies, department stores, and other creditors. If your card issuer doesn’t report to a bureau, the card won’t help you build a good history.Here are more opinions and answers from other FAQ Farmers:Good answers and facts from above entry. One of the best secured cards out there is NATIONAL CITY BANK. If there is a location near you, you can apply with the bank, and they will send it in for you. You will only need $ 200 to open the card, and for a secured card, the interest rate is not all that high. If you go to National City Banks website, it will be difficult to find information on the secured card. (Do not be confused with their Buxx card…this is not it). Find out their phone # from the site, though, call the number and request an application. Secured cards are hard to come by, half of them are better left alone. Orchard Card is the next best card requiring only $ 250, but they have some fees. I believe Wells Fargo Bank offers a secured card. I don’t know anything about their terms though.

  • Secure credit cards are great to start building credit.. here is a great article that explains the difference between secured and unsecured cards…