Secured Credit Cards: Perks and Pitfalls

| COLLATERAL the SECURED Credit Card DAMAGE GOOD |(ALMOST)* NO CREDIT NECESSARY CREDIT CARD DEPOSIT CREDIT CARD BUILD CREDIT PAY Just like an unsecured card, HISTORY monthly payments are A secured credit card The limit on a secured credit requires collateral, usually in the form of a savings, money market or deposited. CD account. card is typically 50 - 100% of required on top of any application and annual / monthly fees. Ensure that payments are reported by the card issuer to credit bureaus in order to rebuild credit history. the required collateral This is the only good reason to use secured credit cards Despite hefty deposit and fee requirements, Note: Images from psderapbics.com. Web De oan tred credit coras a ny Earanteed the BAD ANYONE CAN | QUALIFY! BAD CREDIT? NO CREDIT? NO PROBLEM!!! 1 (900) 555-1234 ??? AAA APPROVED LOW CREDIT NO SCAM LIMIT GUARANTEES TACTICS The credit limit varies by card and can go up to several thousand but most fall between Secured cards are sometimes the Advertising strategies employed by some marketers of secured credit cards make deceptive only option for people who are recovering from a major life event, such as job loss, divorce, serious illness or bankruptcy. $300 to $500. The issuer typically limits credit to the deposit or some percentage of that amount. claims designed to lure people with few credit options. Check out the issuer's reputation before proceeding. However, some issuers only give secured cards to people who are new to credit -- not those who have already had a shot and misfired. UGLY ANNUAL / MONTHLY FEES All secured cards carry annual (or monthly) fees. The more outrageous cards will charge fees as high as $75 per year, which against a $500 credit limit, is just plain evil in plastic disguise. FEES, FEES & HIGH RETURN ITEM FEES These fees are charged if a payment is returned due to insufficient funds. We've seen these go as high as $29.00 against a $500 credit limit card. MORE FEES Avoid further financial distress by doing your homework. Nefarious fees hidden away in the fine print can quickly obliterate your entire credit limit before the card is even DEBT used. DON'T GET SCAMMED. APPLICATION FEES We've seen application fees as high as $95 BEFORE the account is approved, putting the consumer into a hole before the card is even used. Ensure that this fee is SPIRAL refundable if the application is rejected. SKY HIGH APRS APRS run as high as 60%. If possible, avoid at all costs. nerdwallet We do the homework for you.