In life, some of us make mistakes that can hamper our credit rating.
Having a poor credit rating can cause many hassles, making it harder to get a home loan, car loan, or a personal loan.
It may seem like an impossibility to find your way back to having a good credit rating.
However with secured credit cards, there is a safe and secure way for you to regain your credit rating, and to show creditors that you are able to show creditors that you have changed your habits.
These cards can show that you are now responsible, which can help change your financial course and future.
What Is A Secured Credit Card? Many of us haven't heard of secured cards, and may be a little sceptical at first.
These products work rather simply, and as the name states, they are extremely secure.
Anyone can be approved for this form of plastic money, as all that is required for approval is a deposit.
The deposit can be between $200 and $1000, which will be deposited into a separate bank account.
The only time this money can be touched is by your credit provider should you default or fail to make the repayments on your debt.
The deposit is also your credit limit, so there's no risk for the financial institute or bank, and no risk to you of finding a bill in the mail that you cannot pay.
While these cards can be used to help regain a good and clear credit rating, they also come with higher fees, charges and interest rates.
Often, the terms and conditions on these cards can be classed as predatory, meaning that you may find yourself spending a lot more money than your originally expected if you are not careful and forget to think about the mail coming in at the end of the month.
Reading the fine print and knowing what you are signing up is extremely important, as you want to rebuild your credit rating with these cards, not make you financial situation and outlook harder on yourself.
Speak To Your Bank Or Financial Institute Your creditor should also be giving your information to the credit bureau, so your credit rating is showing what it should be.
Some financial institutes and banks may neglect to let the credit bureau know of your new spending and repaying habits.
Speaking to your credit provider will allow you to know where you stand with your credit rating, and will make sure you are getting the credit rating you deserve.
Don't Sign Anything Unless You Know What You Are Signing When signing up for one of these cards, be sure to read the fine print, and do not agree to anything over the phone, or unless you are sure that the deal is right for you.
Keep in mind that these financial institutes and banks are after a profit, and want to make money from you.
They make a lot of money from interest that occurs on your debt, so be careful.
Know what you can pay back, and don't allow yourself to be talked into anything you don't know or understand.