What is a "Secure Credit Card"? Secure credit cards are a very popular type of credit card. Secure credit cards, as the name suggests, are secured. Yes, they are guaranteed for credit card suppliers, really. A secure credit card requires you to open an account with a credit card supplier and maintain a cash balance on that account. This cash balance acts as collateral for guaranteed credit card suppliers.
Your credit limit depends on the amount you hold in the account that you started with a secure credit card supplier. This is generally between 50 and 100% of your account balance. So in that case, a secure credit card is actually not a credit card (because they don't offer you any credit). For this reason, secure credit cards are sometimes also referred to as debit cards.
Even after they pay off their obligations and pay off their debts, their credit rating still haunts them. For people like that, safe credit cards are a gift. Secure credit cards give them the opportunity to not only get credit cards in the first place, but also to increase their credit rating by using secure credit cards in disciplined ways (paying their dues on time, controlling expenses, utilizing a maximum of 70% credit limit etc.). )
When they continue this good habit, their credit rating gradually improves over a certain period of time. Therefore a safe credit card gives them a way to correct their mistakes (credit rating).
Not only people with bad credit ratings who use credit cards are safe. Some people use credit cards safely because they don't want to bother with bills etc. for credit cards. They don't even want to fill out an unsecured credit card application form.
Then there are some who don't like to borrow money (although that means borrowing from a credit card supplier using their credit card). However, such people are very rarely found.
Some people only look for a safe credit card because they have heard a lot of terrible stories about credit card debt - maybe someone from their family or one of their friends is destroyed by credit card debt and they don't want to repeat the mistake. So they decided to use a safe credit card.
Whatever the reason for doing so, a guaranteed credit card is also popular. https://bit.ly/2vT1anb
Your credit limit depends on the amount you hold in the account that you started with a secure credit card supplier. This is generally between 50 and 100% of your account balance. So in that case, a secure credit card is actually not a credit card (because they don't offer you any credit). For this reason, secure credit cards are sometimes also referred to as debit cards.
Why is the concept of a Secure Credit Card so important?
As we know, credit card debt is a big problem caused by the use of inappropriate credit cards. Such people ultimately damage their credit rating to the extent that they cannot get another unsecured credit card (that's what we call a commonly used credit card).Even after they pay off their obligations and pay off their debts, their credit rating still haunts them. For people like that, safe credit cards are a gift. Secure credit cards give them the opportunity to not only get credit cards in the first place, but also to increase their credit rating by using secure credit cards in disciplined ways (paying their dues on time, controlling expenses, utilizing a maximum of 70% credit limit etc.). )
When they continue this good habit, their credit rating gradually improves over a certain period of time. Therefore a safe credit card gives them a way to correct their mistakes (credit rating).
Not only people with bad credit ratings who use credit cards are safe. Some people use credit cards safely because they don't want to bother with bills etc. for credit cards. They don't even want to fill out an unsecured credit card application form.
Then there are some who don't like to borrow money (although that means borrowing from a credit card supplier using their credit card). However, such people are very rarely found.
Some people only look for a safe credit card because they have heard a lot of terrible stories about credit card debt - maybe someone from their family or one of their friends is destroyed by credit card debt and they don't want to repeat the mistake. So they decided to use a safe credit card.
Whatever the reason for doing so, a guaranteed credit card is also popular. https://bit.ly/2vT1anb