Undoubtedly secured credit cards are one of the best options whether you want to build your credit history or repair the credit history. But there are certain things you need to keep in mind while selecting the best secured credit card for you.
Generally secured credit cards require a deposit amount. This amount plays a big role in setting the credit limit for your card.
In the recent years some secured credit cards have started to impose a large fees and high interest rate on its customers. If you want to use the secured credit card for the optimum usages continue to read on the following so that you can ensure that you are getting one of the best secured credit card available in the market.
Ensure your report to credit bureaus
One of the main reasons for opening any secured credit account is to improve your credit score or to build some sort of credit history. But the sad thing is some of the secured credit card issuers do not submit your good credit behavior to the credit bureaus.
There are some credit card companies exist who will not report your timely payments and other good behavior to the credit bureaus but they will report when you missed to pay on the due date. So these companies will not help you to build your credit history in anyway. Get clarify with the credit card issuer before you sign up with them.
Check out the credit line
Once get an approval for the secured credit card some credit card companies offer you the credit line depends on your deposited amount. Let’s say you have deposited the amount of $500 in this case they will give you the credit line of $250.
Enquire the complete fee listings
When you open for a secured credit card usually company will charge the fee like set up fee, monthly maintenance fee and many. Make sure you are a well informed of all these fee structures before opening the account so that you can decide whether you are getting a best prepaid credit card for you.
Keep track on the important dates associated with your secured credit card account
Important dates that you need to remember with your account is “The date on which the bill is sent, when is your bill due and from when your secured credit card balance will start accruing some interest amount”.
If you miss to know these important date definitely you will get end up with the trouble. For example if your predetermined due date is on 1st but you’re your monthly bill statement says that your bill is due on 29th then it’s an issue. You should resolve it by contacting your credit card issuer.
According to the credit card act your creditor can’t charge the late fees until 21 days from your monthly bill was sent to you. So if you are not clear on your due dates ask the creditor to provide you the details.
When your deposits will be used?
Some secured credit card holders used to think when they make late payments their creditor will use their deposit. So they will never impose the interest for the late payments. But it’s not a truth. Your best prepaid credit card company will keep your deposit as a collateral they will not touch this until you defaulted on your payment. When you pay off full in every month without any late payments, they will return your deposit as a whole.
Chances are also there for you to promote your card to unsecured credit card by showing your loyalty and good credit behavior to them. So get a move from prepaid credit card to unsecured credit card. All the best!