A Comprehensive Guide for Using Secured credit card

credit card

To know a comprehensive on how you will use a secured credit card cyro.se, you will first have to know what a secured credit card is. A secured credit card is a card that gives you credit only if you have an account with the bank. Now you are thinking about why it will be a credit card and not a debit card. 

A debit card is one that allows you to withdraw your money from your bank account, but it’s only the amount that is in your bank. You cannot withdraw a sum that exceeds your deposit. But on the other hand for this type of card i.e. a secured corporate credit card you will have to deposit some minimum amount or it can be a certain amount in your bank that you have an account with which has to be a savings bank account, or money market account or it can even be a certificate of deposit.

The minimum amount may vary from bank to bank. In this case, your deposit is considered by the bank as a security. And in some cases the card issuers even allow the holders to earn interest to the amount deposited.

What’s That Amount Then?

The amount that you have deposited in the bank will be your credit limit. Sometimes some of the banks allow you to draw a credit limit of the full amount deposited by you in the bank or some of the times it may be only a percentage of the amount that you have deposited with the bank.

What Is the Card Then?

You have to keep in mind that a secured credit card is not a debit card. It is a credit card as the name speaks out for the card. So if you are not making full payments that are outstanding for every month then the bank will charge interest.

So Who Can Be the One Who Will Use a Secured Debit Card?

If you are one of the persons who are not having any credit history at all, then you are a good person to use a secured credit card. It can be a good beginning for you for establishing an outstanding credit card history. If you are young and if you are just starting, then this can be a good option for you.

Have Bad Credit History?

If you are one of them who have a bad credit history then a secured credit card may be a good option for you to improve on your credit score vumoo. In addition to this, there can be other consequences i.e. a secured credit card might be the only option for you for obtaining a credit card.

Why Should You Have a Secured credit card?

There are some places where if you want to transact then you will have to have a credit card. Like if you want to stay in a hotel there you will have to swipe a credit card and your debit card may not be acceptable. If you need to make a transaction of those types and you cannot get an unsecured credit card. This might be your only way to get one of the true credit cards.

What Should You Be looking for in Your Secured credit card

Interest Rate

You must not think that if you are having no credit history or a bad credit report then you will have to choose or settle for the exorbitant interest rate. Make sure and make it a very important point to choose a secured credit card that will give you a good low-interest-rate before you apply for a secured credit card.


You will have to pay good attention to the fees that will be charged to your account after you open a secured account. Some companies have got hidden costs, and you will be charged some ridiculously high fees once you open an account with them. Which will reduce your initial deposit in the bank before you would have used the card? So you should search for a company that will charge you nothing or may charge you a onetime small amount of fees.


It is very sad to say and you must be very alert about this that there are companies that are existing in the market who will rip you off. That is their main business. You should not fall prey to these companies who find prey.

The vulnerability of your credit crunch should not be the reason you will fall prey. Some of the things included as scams are “quick credit”. The best advice you can take to avoid secured credit card scams is that if it is sounding too good to be true then be sure it is. You must use your common sense in this and you must not be taken away by the false offers.

Credit Improvement Issues

Now if you have a very good payment history on your secured card it can even take many months. Only then you can see some better improvement in your credit record after using it. It takes patience to repair bad credit. You have to be very patient and work accordingly with a good plan. To improve your bad credit record. With being patient you have to be very smart too. You should make sure that the company that is issuing you a secured credit card reports your good payment background to three of the big credit reporting agencies. All companies do not report, if your company is not reporting then you are wasting your time read also Pubg pc.

Some Very Useful Tips

  • Shop around but don’t apply for more than one secured credit card.
  • You should start with a low affordable balance. To be more precise put only what you can afford.
  • Add funds to your secured credit card only after you have paid all your due bills.
  • Do not ever use more than half of the balance that is available.
  • The idea is to use the secured credit card and not drain the credit card.
  • Use your card to pay your bills only when you can replace the funds that you have used up.
  • Make your payments in time and be happy using your secured credit card.


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