MoorTiner667
出典: くみこみックス
Secured Charge cards: A terrific way to Rebuild Credit
Rebuilding credit after bankruptcy, or following a major financial implosion, takes time and energy. Nevertheless there is merit to presenting a bankruptcy as a financial black hole, that you won't spend the money for credit game any longer and just never re-enter the credit system after bankruptcy, for most people that is not a choice.
One method to improve credit quickly is to use secured charge cards for day to day activities, then repay them entirely each month. This quickly establishes a payment history, while keeping debt load and payments in check. Additionally, these cards are obtained quickly with a minimum of qualification and hassle.
Secured charge cards need to be distinguished from prepaid cards. Prepaid credit cards are cards which are loaded with money, then carried and used as a conventional credit card before the money expires. When that occurs, the credit card needs to be recharged, just like a battery. These cards are issued in the name brands, such as Visa and MasterCard, and there's no method to tell a prepaid card from a regular credit card without a trained eye. The issue with prepaid credit cards is the fact that their use and payments aren't reported to credit bureaus.
For people in black hole mode buying on the internet, this really is great. For people trying to rebuild their credit, something better can be used.
Enter secured cards. With secured cards, cash is deposited into a savings account and credit is drawn against that deposit. The card me is secured from the deposit amount. Based upon the type of card, the credit card might be either fully secured (a dollar for dollar advance from the deposit) a treadmill involving some form of leverage (you deposit X and the bank agrees to provide you with X+ on the card). Should you default or stop paying, the bank has got the right to seize your deposit to fulfill the card balance. Note that (1) the credit card issuer does not withdraw the cash against the security balance if you don't default and (2) you do not have access or obtain the security deposit back while the charge card is open.
The secured cards will vary to their benefit rates and terms. This is an area where its smart to do some research and homework. The interest rates change from 0% to 23.99%. Generally, the low the eye rate, the higher the annual fee. In addition, the secured card provider could also charge a use or maintenance fee. Normally, most of the card issuers charge around 17% for that use of the cards. To offset this, a few of the issuers do offer interest (at or near market rates) on the security deposit.
The quantity of the security deposit varies too; it normally starts in the $200 to $500 dollar range and can work upward after that. Also be aware that extra fees are usually necesary in addition to the security deposit, for example to pay off annual fees or maintenance fees.
Finally, be aware that having a card issued, even though there's enough money for the security deposit, is not automatic. Each bank has different terms and restrictions. Again, its smart to shop around and read the fine print.
