Guaranteed secured credit card help you rebuild or re-establish your credit

Guaranteed secured credit card requires you to open a savings account to act as security for your line of credit. Guaranteed secured credit is especially useful for people with a poor credit rating or just started out without any credit history. Making use of guaranteed secured credit card and appropriate payments, you can mend or launch your credit worthiness. Guaranteed secured card attracts a higher yearly fees and APR. There are numerous guaranteed secured credit card providers in the world and you can search for guaranteed secured credit card providers over the Internet.

A Guaranteed Secured Credit Card requires a deposit with the issuing bank, which can amount to hundreds of dollars usually. This sum is considered as collateral while the bank issues credit of some percentage of the deposited amount often 100 percentage. This allows the cardholder to re-establish his credit-ratings if he has a poor credit and cannot apply for other types of credit cards. Guaranteed secured credit cards are often a tool for debt consolidation and credit repair programs. Firstly, it puts the issuing bank at the safer side. But it is also blessing in disguise for the credit card holder for he need not ending up in bankruptcy

The credit line which you have is usually limited to the maximum amount of your deposit amount. You may have to give in a application and evaluating fees. In addition, a typical guaranteed secured card requires an annual fee and has a higher interest rate than an unsecured card. Most guaranteed secured cards have an annual fees ranging from $20 to $60. Before you submit the application, make sure to ask the bank if they will pay interest on your deposit, what are the annual fees you have to pay. Make sure the credit card issuer reports to a credit agency. If your card issuer doesn't report to an agency, the credit card won't help you build a credit history.

     

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