What is the Best Secured Credit Cards?

Credit card companies will always depend on the credit report of a person. People with high credit scores who are applying for a card get instant approval as compared to those with poor credit rating. This is based on the principle of “Good Paying Habits.” It simply states that people who have the financial resources are able and willing to pay for the product or service they need as opposed to those with poor credit rating who would pose a high risk to the card business.

However, there could be unavoidable circumstances, which anybody may get into and one of them is bankruptcy. There are numerous reasons why somebody declares a bankruptcy, but for no reason at all they should be given a fair chance to come back and rebound from such a situation especially so if it was not of their own intention. This is where credit card companies come and offer assistance.

Rebuilding ones’ credit profile is no easy task for someone who just suffered from bankruptcy. Getting a secured credit card is one sure way of starting to rebuild. There will be banks that may offer unsecured credit cards since they do not require any credit checks and they guarantee approval. However, having a secured credit card compared to an unsecured one may be more advisable based on the situation.

First, the interest rates (APR) are always lower. Unsecured credit cards may give you a maximum 23% compared to secured credit cards at 9% APR. That is definitely a great way to save money. The credit limit may be low at the start; say, $500.00 but if you are able to your credit worthiness over the next few months, the bank will raise it higher or even allow you to convert it to an unsecured credit card.

One may simply look at the website to check as to which among them can offer the best secured credit cards after bankruptcy. Here are some of them:

1.    Applied Bank Secured Visa card. A minimum $200.00 deposit is required. This will equal to the allowable credit limit. Basic APR is 9.99% but a Late Fee and Overlimit Fee of $32.00 are being charged. No credit check and income requirement. Annual Fee is $50.00 with the first year deducted from the deposit.
2.    Public Savings Secured Visa Card. Minimum deposit is $300.00 with no credit check and income requirement. No annual fee and with 0% APR for the next 6 months.
3.    Applied Bank National Express Secured Visa Card. Minimum $200.00 deposit is required to a maximum $5,000.00. No income requirement but a verification of information is required. No activation fee. Annual Fee is $50.00.

These are just some of the best secured credit cards to rebuild credit. The most common requirement is a minimum deposit. The credit limit is always equal to the amount of deposit and one is not allowed to have an over limit otherwise a fee is charged. Secured credit cards will always be a good start to tighten up one’s budget and spend within one’s level. The better deal is that people with bad credit are given the opportunity to start and rebuild a better credit report.

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