29 Jun Why Get a Secured Visa?
It helps to know what a secured credit card is before determining why you should get one. A secured Visa has all of the same privileges as a conventional credit card. It differs in that a secured Visa is just that; secured. Visa asks the card holder to mail a security deposit which is returned when the customer closes the credit card. The deposit is usually between $500-$10,000 and whatever you choose to deposit is your credit limit. Visa may offer you an additional $100-$500 depending on card history. The list below explains why secured credit cards are an excellent credit option
A) Guaranteed Approval
You can’t be declined for a secured Visa. All you have to do is apply online and mail your deposit. You can get a secured credit card now by selecting ‘prepaid credit cards’ above.
B) It works like a bank issued Visa
Some prepaid credit cards don’t allow you to purchase certain products and services. For example, a prepaid credit card can not be used for recurring payments or car rentals. A secured Visa works at any ABM accepting Visa in the world and comes with regular 24 hour customer service.
C) Improves Bad Credit Significantly
The secured Visa was developed to give people with poor credit a second chance. A secured credit card improves the card holders credit rating via regular credit reporting. Many people have experienced a complete credit turn-around after using a secured card for couple of years. Visa also offers un-secured credit cards to people who prove themselves credible.
D) Piece of Mind
A secured credit card comes with peace of mind. Your security deposit protects the card in the event that you have trouble with repayment. If you decide to cancel your card Visa will return your entire deposit.
E) Teaches Responsibility
Because the credit limit on the secured Visa is your own money you will naturally use your credit card more responsibly. It’s completely different from having a regular Visa that is loaded with money that was never yours.
F) Low Rates
Secured credit cards have somewhat empathetic interest rates. Perhaps this is done to avoid affecting the card holders ability to repay. Visa typically offers rates as low as 14.99% on secured cards.
G) Good Way to Save
You can load the card multiple times during the life of the card. If you start out with $500 you can add another $50, $100 etc. afterwards. When you decide you want your money for a purchase or investment simply cancel the card service. The fact that using your funds incurs fees is a good enough reason to refrain from using it. You should use your Visa for emergencies only to avoid unnecessary fees. What’s great is that Visa doesn’t charge any fees for inactivity. For these reasons a secured Visa could be a great way to save your money.
A secured credit card isn’t for everyone but if you have less than perfect credit and are having trouble getting a credit card you should give it a go. It’s the second chance we all deserve.