A secured card can certainly help control spending and track financial expenditures. By only charging for products or services using money you pre-pay, you don't have to worry about mounting interest charges and late fees. A secured card is also useful for teaching financial responsibility to people who are initially engaging in consumer credit, such as teenagers. Additionally, a secured card offers a little more security because the maximum that can be fraudulently charged is the amount you pre-pay.
If you have no credit history, a secured card can help you establish credit. Be sure to apply for a card that reports your activity to at least one of the major credit bureaus, preferably all three.
If you are a business owner, a secured card is a great way to give your employees limited access to your company funds for buying office supplies, booking business travel arrangements, etc.
A secured card also makes a great gift. Instead of purchasing presents for holidays or birthdays, give a secured card instead, pre-paid with the amount of money you would have spent if you had bought a gift. This way, the recipient can purchase exactly what he or she truly desires.
Another benefit of a secured card is the fact that it's easier for many people, even those with bad credit, to get approved. Apply for your secured card today.
VIP Visa: No Credit Check, No Turn Downs, No Annual Fees, No Security Deposit, No Employment Required, Online and Offline Access, Low cost fees, Store your Money Safely, 24/7 ATM Access to Funds, No Credit Check or Bank Account Required.
Want cash credit instead of a catalog or a secured card?
If you are employed and have an active checking account, you can qualify for a $500, $1000 or a $1500 cash loan.
Get a fast cash unsecured loan deposited directly into your bank checking account as quick as one business day.
Need more credit card information? Read our financial and credit articles related to a secured card.
Retail
Store Cards
Retail store credit cards are not through a major credit card company, but they report to major credit bureaus. Consumers who don't have any credit usually
begin to establish credit using a retail store card. The card is issued by the store and can only be used for that particular retail store. These cards can
be easier to get than other major credit cards even though they are similar to regular credit cards. With retail store cards, charges are made on the card and
then the cardholder is given a grace period to pay the balance.
When retail credit card balances are not paid, interest is charged. Retail store cards are usually easier to get because the retailer is guaranteed to get your
business as the card can not be used at other places. When charges are made the store is making money off purchases, fees, and interest charges.
Usually there are perks offered when a person
applies for a store card. They may be offered a discount on purchases made on the day
they signed up for the card. It is usually tempting because a person can save on their purchases and keep their money for that day. Discounts may be offered along with a free gift or merchandise from
the store. Cardholders usually get special notices about sales before the general public does and may receive rewards for using their store card.
Retail store
cards can sometimes have perks that make them very worthwhile and can help a person
manage their budgets by getting get good deals on sale items. Yet using a store
card for shopping and making too many charges can still lead to card debt.
Store
Charge Cards
It
may not be worth saving 10% on a purchase by applying for a store credit card. Opening a new
card puts an inquiry on credit reports. The credit reporting agencies may view
the inquiry as unfavorably and it could lower credit scores. How much credit scores
are affected will depend on your overall credit history, how high credit scores
are, and how many inquiries are on reports. The more inquiries, the more credit scores will be penalized
for each inquiry. Too many inquiries on credit reports may sometimes indicate
problems.
Store charge cards usually have high interest rates so it is best before
applying to check the rate. Store cards can only be used at one store and typical charge an interest rate of around
20%. If the balance is not paid off quickly, the finance charges on the card can offset
any savings received when the account was opened.
Many store
cards only offer a few thousand dollars worth of credit. This can keep you from running up a super high balance, but
it can negatively affect credit if charges are made that are more than 30% of
the available credit. Make sure you want to risk adding an inquiry on credit
reports before deciding to get 10% off by applying for a store card.
Store Cards
Huge retailers and department
stores issue store cards that are often attractive and offer lots of perks for shoppers.
The interest rates are probably the highest among credit cards and the rates may
range from 18% to over 20%. With high interest rates, they may not be worth
having. Store cards are about like credit cards but can only be used in the shop
that issues the card. They can be easy to obtain, but they will not be of much
use when you want a card that can be used at any store.
The
store that wants new customer will offer incentives to try to get consumers to
apply and give a certain percent off purchases at the time of the application.
Other incentives could be offered like certain days to shop to save money or
points as a reward for future savings. Some store cards offer a flat interest rate
without any thought about credit scores. This is not the type of card that will
save money if the card holder keeps a balance that is never paid off each month,
because of the interest fees. A negative point is that they usually offer low credit limits.
Credit scores can be affected when there are high balances due for low credit
limits.
Store
Credit Cards
Businesses
sometimes use store cards as a method for purchasing products for the company
and as a way to track company expenses. This can help give a company two card
options, using regular credit cards and store cards. The store card will only
allow the business to use their card at their specific store but when they
supply items that are needed, that can be helpful. The down side is that the
card can't be used just to make charges anywhere other than that store.
When
a company chooses to use a store card, issued by a vendor, they probably use a
high volume of business-related goods and services. This ensures that all of the expenses charged to the card will be business-related.
For new business just starting out and unable to get approved for a regular
credit card, this may be the only option available. Sometimes when the card is
first used, some merchants may provide a discount on the total purchase. If a
balance is carried each month, carefully review the card’s APR to make sure it is not higher than that of other credit card
issuers, typically store cards have higher interest rates than regular cards.
Store
Cards
Big retailers and department
stores issue their store cards to shoppers along with a lot of perks to get them
shopping. Shoppers need to beware as there can be high interest rates - higher
than regular cards. Some charge in the range of 18% to 31% and are normally more
costly to have. Making charges may not be worth the added fees.
Store cards
usually offer lower credit limits than traditional unsecured
credit cards even though the interest rates are high. There are millions of store cards
available and consumers can usually sign up at the register and begin making
charges. Applying for several store cards over the course of a few days can
cause inquiries on credit reports and that could lower scores or signal a
warning to lenders.
Though
store cards can be attractive, consider that a 10% discount on purchases now may
cost more money in the end. Weigh the options of just using a regular credit
card or paying for the purchase with a check card or debit card. With most reward programs,
points are earned for rewards toward future purchases at the shop or department store.
You may have to spend hundreds of dollars just to get a few rewards or points.
Make sure you really want to spend a lot of money just to get a little reward
and high interest fees added on your bill.
Store
Charge Cards
If
you wondered if the Credit Card Reform affects store cards, it does. The new Federal Reserve rules
may make it more difficult for customers to receive a retail charge card. A rule
was passed Jan. 12, 2010 that will require retail outlets to determine that a consumer can make the minimum payment
on the credit card before they can issue the card. The store may have to consider the consumer’s
income, and this concerns some retail stores.
It
would be difficult for stores to certify income at the point of sale, which is
usually where the card is issued. According to some, credit scores and payment history
are still the best ways to determine if a person is able to make payments. The Feds
are aware of the reliable ways to estimate income that some stores have
available and there may be some ways to obtain income information from a third-party.
One point to remember about store cards is that their interest rates can be much
higher than a traditional credit card. Also, using a store card does not allow
for the cardholder to shop or charge at most locations, they must only use the
card at their retail stores. If you think you may only get approved for a store
card, consider checking other available credit
card offers.
Auto Loan: Get free quotes and apply for a new or used auto loan or for auto refinancing.
Credit Report: Free credit report help to fix credit report errors and improve credit score ratings. You are entitled to one free credit report annually.
Debt Counseling: Get your expenses under control with credit counseling, an unsecured debt consolidation loan, debt management or negotiate debt settlement.
Free Credit Offers: Get no obligation, free credit offers plus financial tips to help effectively manage your personal finances.
Home Loan: Free multiple quotes from mortgage lenders. Apply for a new home loan and start building your financial security.
Mortgage Refinancing: 2nd mortgage loan and other types of mortgage refinancing for home remodeling, equity cash out or a debt consolidation loan and more.
Payday Loan: Easy approval bad credit unsecured loan with no credit check, no deposit and no security.
Personal Loan: Submit a short or long term personal loan application (if available), or apply for other secured or unsecured loan offers.
Personal Finance: How to file bankruptcy plus free bankruptcy forms. Create a household personal budget, balance a checkbook register, track expenses and more.
Why Did My Credit Card Interest Rate Increase? Here are reasons why your credit card company may feel you have become a high risk and have raised your account's interest rate:
*You sent a late credit card payment
*You were late paying another credit card account
*You are close to your credit limit
*You exceeded your max credit limit
*You exceeded or nearly maxed out some other credit card account
*Your credit score lowered
*You have too many credit card accounts
*You have too much other types of debt
*You bounced a check
*You filed bankruptcy
*You submitted false information when you applied for your credit card
*You broke a term or condition of the cardholder agreement
*You used the card illegally
*Your credit card account has a variable rate that is tied to another interest rate which had increased
*Your credit card issuer changed business strategies
Instant approval credit card application and a bad credit personal loan with no credit check. Improve credit with our free tips.
Copyright 2001-2010 CreditFederal.Com bad credit personal loan with no credit check, unsecured credit card with instant online approval and debt relief
How Credit Card Debt Gets To A Collection Agency - Wondering why you're getting calls from a debt collection company instead of from your credit card issuer?
Your credit card issuer will invest only so-many months attempting to contact you and to get you to repay the balance, either in a lump sum (even possibly after negotiating for a lower settlement), or to once again make your minimal monthly payments on time.
After your credit card issuer has exhausted those efforts, the will give up and charge off your debt. They will then sell your debt to a collection agency, which pays pennies on the dollar to acquire your account debt. That's how you end up owing the payoff (or settlement amount) to a collection agency instead of to the original creditor (the card company).
Whether you owe debt to a collection agency or to a credit card company, you can get a credit counseling or debt consolidation quote. You can also learn do-it-yourself free debt settlement and draft your own debt settlement letter, or let a professional negotiation company do the work for you.
