Secured credit card high limit is the best alternative solution for people who are facing a challenging credit history such as consecutive defaults of loans, no credit or bankruptcy. Paying regular on time through your new secured credit card high limit will establish again your reputable credit records.
This type of credit card is requires collateral in the form of deposit account which will determined your credit limit hence it is called secured credit card. The cardholder must own this deposit account. Hence, if the cardholder deposits an amount of $1000, the credit limit will be likely from $500 – $1000. It depends and varies as the credit card provider policies.
All your purchase transactions will be charged against the collateral deposit. Also, any fees and charges such as for delay payments or defaults will be charged accordingly to your deposit.
To avail secured credit card high limit, the credit provider will ask you of your personal details, bank details, income statement and employment status. The last requirements are important, as they will evaluate your capacity to pay the required regular payments. As it is a secured credit card high limit, there is a big chance of your application to be approved. The high risk factor is minimized because of the security deposit.
If you are keen to consider applying secured credit card high limit, it is beneficial to know how the secured credit card system works and what important things to consider.
The first thing to ask to the credit provider is the interest rate. Note that every institution providing secured credit card service has different policies therefore interest rates will vary. Scouring many credit providers will give you the general idea of the interest rate and other fees incurred during the application process. The usual interest rate is around 19% thus beware of any tremendous interest rate charges.
Apart from the interest rate, you should know all the charges included or to be paid in the secured credit card high limit. There are some scrupulous credit card providers that will exponentially charge you. The usual charge is from $25 to $60 hence charge higher than this must alarm you. Other information you need to know is the grace periods, the penalties for late payments and the applicable fee if bill is not paid fully in the end of the month.
These types of cards are also available both in Masters and Visa. It is expected that the charges are higher than ordinary credit card and the terms and conditions specified are limited and more specific.
The purpose of the secured credit card high limit is to give option to people with a poor credit history or no credit. It is most of the times the last solution offered for people who wanted to recover their tarnished credit history.
Making your payment on time and paying the full balance amount will truly help you rectify your bad credit record. However, it is still important to note that secured credit card high limit is just a tool and not a guarantee for better credit.
what prepaid credit card has no limit if i have direct deposit from my employer? i have a $65.000 a year income?