Credit cards have changed our lives drastically. We finally feel free doing whatever we want with our money. These pieces of plastic are a nice way of getting what we need now, but paying for it later.
Today it is hard to imagine there once was a time when people lived differently. Empty wallet could leave them hungry for days.
Now we do not have such troubles. We can buy whatever we want whenever we want it. Although, drowning in wide range of goods, our society is facing another problem – overbuying.
Market is staffed with goods. Irritating commercials hit their aim of targeted audience making people buy things they do not really need.
Statistically, there are at least 28 items in each room of our houses we never use. Some of them never get unboxed. Although all of them cost us some money, sometimes making us pay more money from credit cards than we can afford.
This chain brings us to a certain point we can no longer cope with our debts. After the long recovery, people are unable to find a new bank, unless they apply here for a secured credit card.
What is a secured credit card?
Unlike all other cards, this one demands a certain security deposit. This sum is taken as money collateral of payments. Most banks offer security cards with tiny credit balance.
Certain banks are ready to boost this balance 10x after about half a year of payments in full. In certain sense, it is a second chance for those who have made a mistake once. Although, one should understand there will hardly ever be the third one.
What are the types of secured credit cards?
Main types might vary from bank to bank. They mostly include 3-5 kinds of MasterCards and Visas. These types are arranged according to level of protection, annual fees, regular APR, and the sum required for minimal deposit.
The higher these numbers are – the more credit funds one receives. Each card can be upgraded if used correspondingly to bank rules. Certain card types may be transformed into unsecured cards later.
How to order?
You will mostly get approved to get such cards if you:
- declare yourself a bankrupt;
- have no outstanding Tax duties;
- are of age 18 and older;
- can verify your address and prove identity;
- meet all legitimate requirements for receiving banking cards.
After filling in a regular form and providing all documents required, customers get either approval or denial.
If their claim is approved, bank will notify them on the security deposit amount and the credit score. In a few weeks clients will receive their cards and can start using them.
We hope this article has cleared things up for you. Make sure to use your card wisely!