Why Are People Choosing To Get A Secured Visa Credit Card?
Why would you choose to get a secured credit card? There are many people out there trying to rebuild their credit. If you are one of those people, you might even find that you can’t get approved for an unsecured credit card. It happens, and even if you can get approved, you might find that the card you get approved for has a high interest rate, an annual fee and other charges. In other words, you might be better off getting a secured Visa credit card.
A UNITY Visa secured credit card is one of the better options as it has a better interest rate. Of course, you need to put up a security deposit, and the amount you pay will be your credit card limit. You are eligible to get your security deposit back at a later date, and you will of course pay less fees than opting for an unsecured card for people with bad credit. It really does sound like the best option now, right?
After awhile of using the secured credit card and making on-time payments, you may be eligible for a much better credit card. It can take a year or longer, but the right card offer will come along. Just make sure you don’t use a secured credit card only long enough to take an offer for an unsecured credit card with a bad interest rate and all of those fees.
While you’re using your secured credit card, it’s more than just about making your payments on time. The absolute best thing you can do is to pay your balance off monthly, before you are charged any interest at all. If you do decide to carry a balance, or you have to do so, make sure you keep your balance lower than 30 percent of your credit limit. Keeping you balance low improves your credit score and increases your chances of getting a good credit card offer in the mail.
There are credit card companies that require partial deposits. There are also companies that change customer credit cards from secured to unsecured after a certain period of time. There are all kinds of great options out there. Typically, your minimum security deposit is going to be around 200 or 300 dollars. Of course, the higher your deposit, the better. You should be able to add to your deposit whenever you like, increasing your credit limit over time if needed. Either way, those are the reasons why people are getting secured Visa credit cards.