Guaranteed Secured Credit Cards

In the financial world the name of the game is return on investment. I read (okay, I only started reading) a book written by one of Warren Buffet’s two mentors. His name was Benjamin Graham and you could sum up his whole investing philosophy by saying this: “Find investments that offer safety of principle and a reasonable rate of return.”

With this in mind, the credit card companies are very careful about who they issue credit to. They don’t make billions in profits every by throwing their money around willy-nilly to anybody who just walks in and says sign me up. The reality is most people wouldn’t offer “safety of principle and a reasonable rate of return.”

Two of the biggest indicators the credit card companies use when evaluating you are 1) your credit score, 2) your credit history. This is how they judge whether you’re going to pay them back their money or not.

If you have a low credit score or not enough history, you’re not going to get approved for a standard, unsecured credit card. That means a secured credit card is the way for you to go.

To make the start of you credit-building journey as easy as possible, you should be looking for guaranteed secured credit cards. What do I mean by that? I mean you should only apply to credit card companies that offer guaranteed approval. After all, you’re putting down a big security deposit, which means their principle is complete safe and they’re going to make a reasonable rate of return off you. There’s no reason not to approve you.

Is it possible to Get Guaranteed Approval on Non-Secured Credit Cards?

The short answer is no. If you think about everything we just talked about as far as risk and reward for the credit card companies, you realize it would be corporate suicide for them to hand out a credit card to anybody and everybody that wanted one. A lot of those applicants aren’t credit worthy, and they wouldn’t repay their balances. We can’t have that can we?

If you want an unsecured credit card there’s only one way to get it. You’ll have to have some credit history and at least a decent credit score. They may start you small, but if you can get approved for even a small limit it will help you prove yourself to the credit bureaus and soon you’ll be to get as much credit as you want or need. Depending on your discipline and habits, this might be a blessing or a curse.

Secured Credit Cards With An Interest Bearing Account

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If I ask you to name the number one concern with owning and using credit cards it will take you about half a second to say “high interest rates.” It’s everybody’s worst nightmare right? Run up a balance on your credit cards and then you’re paying them back until three weeks from never. That’s why so much fear and hatred is associated with credit cards and the credit card industry.

Well I don’t hate credit cards. I love them; my business couldn’t survive without them. Have I made my share of mistakes with them? Of course. But you have to learn from your mistakes and move on. Just think if the cavemen had given up on fire after they got burned for the first time. Hot Pockets would be Cold Pockets, and I can’t bear the thought.

So let’s talk about this issue of interest and credit cards, and let’s focus it on those of you who are in the credit building or credit re-building phase of your life, because I want you to be looking for secured credit cards with an interest bearing account.

Those of you unfamiliar with secured credit cards probably need a little background. Secured credit cards offer people a chance to rebuild their credit or establish some credit history without putting themselves or the credit card companies at much financial risk. The risk is removed because the credit line (whether it’s $100 or $10,000) is completely secured by cash deposit the applicant makes into an account owned by the issuer of the credit.

By having this deposit in place, you’re assured against ever running a balance you can’t repay, and the issuer gets to sleep well at night in his giant corporate bed knowing you won’t leave him holding the bag on a big, unpaid debt.

Let’s assume you pay the balance on your new credit card every month (I know you wouldn’t think of doing anything else). That means you’re not paying any interest to your credit card company. But what about that security deposit you made? Is it just sitting there earning no interest for you? I hope not, because the bank is definitely making money off your cash.

If they’re going to make money off your cash, then you need to get paid too. That’s why I’m trying to teach you how to earn interest on secured credit cards.

When you start shopping around, make sure you look for companies with low or no fees, reasonable interest rates, and above all, look for companies that will pay you 2% or 3% on your deposit.

Think about it. If you’re paying your balance and earning a couple percent on the money you’ve deposited, then who’s coming out ahead? You are! (Of course, they are too. Remember, they earn a lot more than 2% on your money. But hey, it’s better than nothing.)

It’s a win-win-win. You’re building good credit history and earning a little interest on a savings account, and they’re earning billions of dollars in profits each year. I love capitalism.

Secured Visa Business Credit Cards in the Bahamas

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“There is a reasonable basis for believing that some people are using offshore credit cards to help them evade paying U.S. taxes.”

You really gotta love the government. I took that quote direct from the IRS website. They might as well say “There is a reasonable basis for believing that the sun will rise tomorrow.”

You may not have known you could get credit card in the Bahamas, but you can. All you conspiracy theorists need to brace yourselves for what I’m about to tell you. The government is not only going to come after you if you have offshore bank accounts; they’re going to come after you if you even have an offshore credit card.

I have no idea how you’d scam Uncle Sam out of his precious tax dollars with the use of a humble credit card. I’m sure I could find out with a couple quick google searches, but check this quote out from our friends at the Internal Rip-off Snakes:

“On March 27, 2002, a federal judge in San Francisco issued an order authorizing the IRS to serve the John Doe summons on VISA.”

What does that mean? It means they got a judge to order Visa (and, as it turns out, Mastercard and American Express) to open their database to the tax hounds so they could sniff out folks using offshore credit cards to evade taxes. Is nothing sacred?

I’ll let you sort out your own tax avoidance plans, but let me give you some tools to carry out your diabolical scheme.

Scotiabank MasterCard Business Card

Scotiabank is one of the leading banking and credit card providers in the Bahamas with branches throughout the islands. I could only find two business credit cards they offer, both are master cards, and neither one is secured. The terms of the offer are pretty standard, and the Bahamas keep their dollar equal to the US dollar so you don’t have to do any guessing about conversions for your limit or balance.

Royal Bank of Canada

This is a prominent Canadian bank offering Bahamians these options for credit cards:

• Visa Classic
• Visa Gold
• Mastercard Classic
• Mastercard Gold

You’ll find standard terms and rates apply with these cards. I hope I’ve shown you that whether you’re traveling or trying to sneak around those pesky taxes, the Bahamas have the financial tools you need.

Visa Secured Credit Cards Online

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Let’s practice a little free-association for a minute. You know what I mean, I’ll throw out a word, you say the very first thing that comes into your head. Here we go: cat. Did you say dog? I did. Car. Did you say truck? That’s what popped into my head.

What about credit card? I’d be willing to bet the first thing that jumped to your mind was Visa. You know why? Probably because Visa is the original credit card company. The granddaddy of them all.

A common theme lately has been secured credit cards. Today we’re talking about them again, except we’re talking specifically about Visa secured credit cards online.

Why online? Well Visa was basically the pioneer when it comes to allowing people to carry out transactions via telephone, mail order, and eventually the internet. Here’s a little history:

In 1968 a man named Dee Hock led a group of banks in forming a centralized electronic payment system allowed banks to speak the same ‘language’ while still competing for their own profits. They decided to name the system Visa because it was simple to pronounce and would sound the same in any language.

Over the years, Visa evolved. The standard piece of plastic was still useful, but consumes were making purchases through new and different channels like mail order catalogues. Not that the catalogs were new, but people wanted to use their cards to make purchases through those catalogs.

In the mid-eighties Visa hooked up with a national ATM network, and debit cards became more and more prevalent. It was only a matter of time until the internet took off along with ecommerce, and the use of credit cards online became part of everyday life.

And here we are today, so back to the current theme. Visa offers several secured credit cards online. Let’s look at one example.

Millenium Black Diamond Visa

Pros:

• Guaranteed approval.
• No credit check.
• Credit lines up to $10,000.
• Reports your good behavior to all three credit bureaus.

Cons:

• Purchase APR is a little high compared to others (19.5%).
• ‘Set-up Fee’ of $99.95 (huh?)
• Annual fee of $59. (On its own, not terrible. But along with the hundred bucks to set up the account? It’s a little much.)
• No grace period at all. (Most cards offer at least some grace period.)

Secured Credit Cards in the UK

Safe to say that people are people right? I mean, whether you’re talking about folks in the USA or the UK, we all have characteristics in common. One trait we all seem to share is impatience. You know, the desire for instant gratification. We’ve al heard the saying “Why put off till tomorrow what you can do today.” How about the 21st century edition of that saying: “Why save up for the things you can buy with credit cards today.”

I’m kidding, but only a little. People around the world are able to satisfy their appetite for NOW because of the proliferation of credit cards. It’s no different in the United Kingdom than anywhere else. You’re going to find people looking for secured credit cards in the UK as much, or more, as you do in the United States.

Credit card offers and terms in the UK are very similar to those in the US. They’ve legislated laws to ensure that credit issuers are completely truthful in explaining the terms of their credit agreements. Interest rate and annual fees will also be similar, and so will credit limits.

Unfortunately for some, credit card companies in the UK are just as careful about who they extend credit to. If you’ve committed financial sins in the past, or if you haven’t established much credit history, you probably won’t be able to get a normal credit card. For you, the best way to go will be no fee secured credit cards in the UK.

There are plenty of companies in the UK offering secured credit cards. Here’s a short list:

• Capital One
• FirstPlus
• Vanquis
• Aqua Card
• Cash Plus Mastercard

These cards won’t be dissimilar form those in the US. You’ll have to secure your credit line with a cash deposit, you’ll probably pay a fee to keep the account open, and you the interest rate will be high. Hang in there though. Over time your credit rating and history will improve to the point that you’ll be able to get a normal credit card and my research tells me that’s not such a bad thing. For starters a lot of the UK credit cards I’ve searched for seem to have an initial 56 day grace period (as opposed to 25-30 on cards in the US). Not a bad deal at all. I’m sure we’ll talk more about that in the future.

Which Banks Are Offering Secured Credit Cards?

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Thousands of people every month are searching for secured bank credit cards in the US. It won’t be hard to find someone to offer you one, but you’ll want to make sure you like the terms of their offer.

Once you’ve decided (or just realized) you need a secured credit card, you can look into any of the providers in the list below. They all have a proven track record with their customers, so you’ll want to evaluate them on their individual merits.

• Digital Federal Credit Union
• Amalgamated Bank of Chicago
• Suncoast Schools Federal Credit Union
• Orange County Teachers Federal Credit Union
• Orchard Bank
• The Golden 1 Credit Union
• Bank of America, NA
• Plains Commerce Bank
• First Premier Bank
• Wells Fargo Bank
• Emigrant Saving Bank
• The Harleysville National Bank & Trust Corp.
• First National Bank of Chester County
• Malvern Federal Savings Union

You’ll be weighing several variables when choosing a secured credit card provider. Bankrate.com lays out the following criteria to help you make your decision. They are:

• Class
• APR (the interest rate)
• Annual Fee
• Purchase Late/Over Limit Fee
• Grace Period (time before interest accrues after a purchase)
• APR on Cash Advances
• Fees on Cash Advances

Since secured credit cards offer basically guaranteed approval, you’ll want to look carefully at their fees and interest rates. There’s no reason to overpay if you can go next door and get a better deal. The only other thing I’d do is try to find some customer reviews to make sure the cheapest credit card doesn’t have the worst customer service. After all, you usually get what you pay for right?

*Thank you to Bankrate.com for the information supporting this article.

Compare Secured and Unsecured Credit Cards

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The credit card industry is one of the biggest, most competitive, and most profitable out there. Credit consumers today have more options than ever and there are a lot factors t to evaluate. One of the first questions is whether to get a secured or unsecured credit card. Some people may not think the choice between secured and unsecured credit cards is a tough one, but it’s not as simple as you might think. There are several angles to consider, but first let’s look at the basic characteristics of both types of credit cards.

Secured Credit Cards

Easy approval, often guaranteed. Great for building credit score and history, or rebuilding after bankruptcy.Requires a security deposit, usually equal to the amount of the credit extended. Often carries a monthly fee to maintain the account. Typically charges high interest rates on purchases, 21% and above.

Rarely offer balance transfers.

Unsecured Credit Cards

Approval based on credit worthiness (score and history). Good for improving your credit if you use them wisely. No security deposit required, limit determined by credit card company (depending on credit score and household income). May or may not charge an annual fee to maintain the account. Cards with rewards such as sky miles often carry annual fees. Interest rates on purchases can range from 9.9% to 21% or more. Often offer balance transfer options with promotional interest rates. It’s obviously easier to get unsecured credit cards with fair credit, and you’d probably rather not have to put down a security deposit.

Basically, unsecured credit cards are the better tool in the long run, but that doesn’t help those people that have bad credit and need some credit now. My advice is that people should get unsecured credit cards with low rates, no annual fee, and a rewards program if possible.

If it’s not possible to get an unsecured credit card, shop around for the best possible rates and try to avoid fees whenever possible. Use the secured credit card wisely for several months and soon you’ll probably get offers from companies for the unsecured variety.

When you get those unsecured credit card offers, look for one with a well-known company and one that offers a low or 0% introductory interest rate for at least six months. That way you get the benefit of using their money for ‘free’ until the promotional period ends. Make sure you pay the balance monthly!

Low Interest Student Credit Cards

What are the two fundmental principles of Investing 101? Risk and reward. If you’re going to put money into an investment, you have to take the potential risk and the potential reward of the investment. The riskier the investment, the higher the potential reward has to be.

Does this have anything to do with credit cards and interest rates? Of course it does. I want you to find low interest student credit cards, but I want you to understand why it’s not that simple.

Every time a credit card company extends a person a line of credit they’re factoring in the potential risk and the potential reward. You might think credit cards charge high interest rates on most student credit cards because they just want to soak the students for all their worth, but it has more to do with how likely students are to pay their credit card balances.

Interest rates are high on certain types of credit cards for one reason: the people that have been issued that type of card are more likely to flake on their payments, whether that means they pay late or they don’t pay at all. Students are a high risk demographic for credit card companies. According to the standard measurment tools (the credit bureaus), a college student is someone doesn’t have a proven track record of using their credit cards and then paying their balances. They just haven’t had access to credit cards for long enough to prove they’re a safe investment.

The reality is there are a lot of people who just can’t handle credit. They treat it like free money that won’t have to be repaid. They pay late or they don’t pay at all and the credit card company gets stuck with the bill. Most college students represent an ‘unknown quantity’ to the credit providers. Maybe they’ll behave themselves with a credit card, and maybe they won’t. Only a credit history can prove it, and college students haven’t had time to build one.

College students can get higher rate cards and use them consistently as a way of proving their credit worthiness. It may even be in their best interest to carry a small balance on the card and pay it down over time. Yeah, you pay some interest, but just look at it as the cost of doing business. If you can show the credit bureaus you’re trustworthy you’ll be able to get high limit, low interest credit cards down the road that you can use for good purposes like running a business or buying advertising.

All that being said, you may be able to find a student credit card with an interest rate between 8% and 12%. Not bad for a first timer.

Either way, if you pay your dues, you’ll get the best credit cards later.

International Student Credit Cards

For a lot of foreigners, the Amercian Dream begins with college. More and more universities are accepting foreign applicants to improve the diversity of their campuses, and like it said in Field of Dreams, “If you accept foreign students, they will come in droves.” I think that’s what it said anyway, or something very similar.

So what is life like for a college student freshly arrived from Canada, China, India, or Europe? They have to get used to a new culture, a new currency, a different language (although most of them probably come to this country with a working knowledge of English), and they have to get accustomed to the business and financial practices of the United States. Depending on their country of origin, the way our financial systems work may be completely different.

And what is it that makes our financial world go around? Two things: savings tools and financing tools. This blog doesn’t deal much with the investing side of money, so let’s talk about how a foreign student can break into the world of American debt. The way for them to get started is with international student credit cards.

It’s not going to be easy for most international students to get credit cards. First of all, they will come to the country with no credit history or credit score in the eyes of the American credit bureaus. That makes them a big risk in the eyes of any credit card provider.

Since most foreign students will be viewed as a risky client for the credit card companies, the best way to go may be with either a prepaid or a secured credit card.

My preference would be for the student to get a secured credit card, because the provider of that card is more likely to report consistent use and payments of the credit card to the credit bureaus. After several months or a year of positive reports the foreign student will start to establish the credit score and history they need to get better credit cards (as in higher limit and lower interest rate).

Here are a couple credit cards I found that are available to international students:

American Express Blue Credit Card for Students – many international students have been able to establish their first unsecured credit card with American Express. It offers some great benefits as well, with discounts on airfare, no annual fee, and a couple of hours of free long distance phone calls. And don’t forget the snob factor of owning an Amex.

Chase Platinum Credit Card for Students – Chase seems to approve a relatively high percentage of first time foreign applicants. Also, Chase won’t charge you an annual fee if you get this card and they’ll provide fraud protection on the card as well.  You even get to choose from four designs.

Secured Student Credit Cards

One of the best things that any college student can do is get a credit card. There are a lot of options out there where you can go get credit cards. Some of you might have some difficult history in your past when it comes to credit. That is fine because there are still avenues for you to take a look at. One of the best ways to improve your current credit is to go get a secured student credit card.

Next you want to see what type of interest rates you can get. Usually if you have had a bad past with credit, your interest rate is going to be anywhere from 15% and up to 25%. There could be an initial lower interest rate, but make sure you read all of the terms and conditions of the contract. Be aware that there can be changes very quickly in your contract with the interest rate. It can take them only a 15 day notice before they make a change in the APR and bump it up.

Prepaid Student Credit Cards

When you get a secured credit card, you need to decide what type of credit limit you are looking to get. It usually isn’t more than a couple thousand dollars as a possibility, but more than likely a few hundred dollars. Usually the deposit will be about the same as the credit limit, but it could be less or more depending on the credit card company. It might be 50% of the credit limit or it could be up to 150%. You should search around to find a secured credit card that will allow for a smaller deposit.

With these cards, you can build a lot of credit during your younger years. You need to make some improvements to your credit and getting a secured credit card can be a great way to get you back into good graces with credit bureaus. Also with the deposit you might find yourself taking more notice and responsibility for your credit then what maybe you have done before in the past. This could also be a good option if you simply have no credit history at all. Find a lot of options before you make a decision so that you are not caught with a lot of fees and high interest rates.

Another choice you can look at is getting a family member to cosign on a line of credit to get your foot in the door, if a prepaid student credit card appears to much for you to handle. If that doesn’t work out then look to work through a debit card with a checking account and start building a good recognizable history that way.

Secured Credit Cards for People With Bad Credit

Everybody goes through rough patches in their financial life. Sometimes there are circumstances that lead to getting behind on your bills, missing a few payments to your debtors. All kinds of things can happen that make it impossible for you to keep up. It could be a layoff or a slowdown at work. Lots of people have unexpected medical bills or car repairs they weren’t planning on. Cash starts to get tight, you have to make tough choices about which bills to pay and which to ignore. The worst case scenario happens and you miss a couple mortgage payments. Why can’t the credit bureaus just let a few slider right? Wrong. Just one or two 30 day or 90 day lates on your report can wreck your score. I guess a credit score is kind of like trust. Have you heard the saying? It takes a lifetime to build trust and only five minutes to lose it. You’ll understand what that means when you don’t send the mortgage check a couple of months in a row.

Luckily, these little financial slip-ups are temporary for most people. Your job will pick back up or you’ll find a new one. Pretty soon you’re sending all the checks in on time and you’re sleeping a little better at night. Once you get your finances in order again you’ll want to get your credit rating back on track as quickly as possible. One solution is secured credit cards for people with bad credit.

Credit card companies and banks are wary of anyone that has missed payments in the past; they think you’ll miss payments again. They don’t want to lend money that’s not going to be repaid. In other words, your good intentions aren’t enough for these guys. Go figure.

Rebuild with Secured Credit Cards

So here’s what you do – remove their risk. They’ll give you a credit card as long as you put something at stake – your cash. Show them you can handle a little piece of plastic with a logo on it, and if you consistently use the card and make payments on time you crawl out of the hole you got yourself in. That’s the best way to use secured credit cards to rebuild very bad credit.

It’s probably not a bad idea to open a few of these cards, and use them for your every day purchases – gas, groceries, clothes – the credit companies will like the fact that you’re handling the credit well.

Canadian Student Credit Cards

Student credit cards in Canada are different from what you might find in America if you are a student going north of the border. There are some common traits that you will have to have whether you are in Canada or America. It is important that you establish good credit. The best thing you can do is build your credit. If you have none then there are some things that you can do to improve your situation.

First of all you can open a saving account and a checking account before you apply for student credit cards. These are great ways to get the ball rolling. This isn’t going to solve everything, but it will help start off on a good note. You can start paying your bills in college such as rent and utilities on this fund. This will allow for credit bureaus to see that you are good on paying your bills. Then it is good if you can get a store credit card from a clothing outlet that will allow you to build more value with credit bureaus. This is all in vain if you don’t pay your bills on time. That is the biggest thing you can do.

For Canadian students to get a credit card it will probably require an annual fee of some kind. The limits are usually around $750 and the interest rates are similar to those of American credit cards. They are usually around 15% or so. This is a good way for you to build a credit history during school. This can help you to eventually lower your interest rates and then be able to raise your credit limits higher. If you are struggling to get a card then you might have to get a cosigner. This is fine and can be a good way to make sure that you are taking care of that card because someone else is responsible with you. I would also ask advice from this person as to how to properly spend wisely with a credit card.

If you are having issues getting a credit card and you can’t get a cosigner then it would probably be good to go after a secured line of credit. This can be a good option for students that are struggling to get a credit history establish and are easier to come by. You will probably have to make an initial deposit equal to the amount of money you want to have as a credit limit. Whatever type of card you are able to get, build a first initial impression with the credit bureaus and your creditor so that they are able to offer your better rates in the future.

Low Interest Secured Credit Cards

Many people are looking for low interest secured credit cards to get themselves back on track. I understand why any person would want low interest rates, but at the same time I think it is kind of funny that you are entertaining paying interest rates on a credit card and missing payments after going through so much trouble and struggle with a credit card to begin with. It is almost saying I know that I am going to get punched in the face again, but then asking “Please, just not in the nose.”

My feeling is that I would look to make sure that you have a couple other requirements then just finding low interest rates. One of the best things that you can do is take the time to look at the issuing bank and how credible they are. Do they have a good history with credit bureaus?

You can contact credit bureaus and the Better Business Bureau to find out if they have an impressive history or not. Beware of low interest secured credit cards online, not all are legit just because they have a low interest rate. This will allow for you to find out if they report to the credit bureaus with your history with their cards and in turn will allow you to have a higher credit score if you take care of your payments on time.

Next I would be more concerned about application fees, processing fees, late fees, deposit requirements and any other type of fee they may make up. This is so important because this is really how a company can make a lot of money off of you even if you take care of your card payments. Some companies charge up to $200 or more just to get started and then more fees monthly or annually. This can take its toll on any person with bad credit.

With deposits you are going to be required to make an initial payment between 10% and 200% of the credit you will have available to use. For instance, say if the issuer decides you have to make a 100% deposit, then if you have a credit limit of $1,000 you are expected to make a $1,000 deposit. Some can be greater than that. It becomes kind of silly, but there will be a price you will have to pay in order to turn your credit around.

Usually I have seen rates between 10% and 20% on a usual secured credit card. You may see lower, but I suggest that the lower the interest rate is with your secured credit card then the longer you should read the terms and conditions. The rates on low interest secured credit cards can leap drastically after six months or one year. Some will have an accruing interest rate that you don’t have to pay off until six months. These are all techniques that are done to allow for you to have time, but also can cause you to procrastinate easily and find yourself in a terrible position financially after several months.

I suggest that you are careful about your choices. You are better off getting a card from a well known bank with higher interest rates then low interest secured credit cards online. Some don’t have credibility and honestly aren’t looking out for your best interest. No pun intended.

Student Credit Cards Interest Calculator

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I suggest that you find a credit card interest calculator to be able to find out how your credit is and how it can be affected based on how you spend using that card. This tool is going to help a lot of you to figure out how important it is to pay off your bills. One of the best ones that I had found was at webwinder.com. It is pretty staggering to think about it when you see what would happen with minimum payments only being paid on these balances.

To give you an example of what could happen I threw in some numbers into the calculator. I simply charged $2,000 on this calculator for the balance. Then I did an annual interest rate of 14%. After that I put in a minimum payment of 2% or $10 depending on which one is higher. So I calculated it and it came out kind of mind boggling. The interest would be $2,354 dollars and it would take 242 payments to pay it off. That would be over 20 years before that charge of $2,000 was paid off. That is absolutely nuts. You will have lived a quarter of your life before you are able to pay it off. That isn’t a pleasant thought.

I think this shows why it is so important to calculate your debt and find safe and faster ways to pay off interest and get to the principal. These calculators give you a good understanding and at the same time it is probably important to get a financial adviser to help you pay off your debt quicker. It is hard being in college with a lot of student loans because of ridiculous tuition fees.

You have to worry about a lot of debt already so the last thing you want to do is worry about paying off credit card debt. You have a lot more control over this issue because you can budget safely within your lifestyle. This is a hard habit to make for a lot of college students that are trying hard to impress the opposite sex, but it will be even more impressive if you can avoid a lot of needless debt going into a relationship. If you can build those habits of living within your means now then it will help you throughout marriage and especially for the example that you teach to your kids.

Use these calculators to evaluate your debt and make sure to pay off the debt with higher interest rates first. So if you have student loans and credit card debt then stick to paying off your credit cards first and then focus on your student loans.

Low Limit High School Student Credit Cards

To be honest the idea of high school kids running around with credit cards should probably make us all a little nervous. Teenagers aren’t known for their foresight or restraint are they? No, they’re not. They’re known for seeking excess. I’m not saying it’s such bad thing. Teens need to spread their wings a little, rebel a little.

So when we think about the right way to ease kids into the world of credit cards, we want to make sure they have that sense of freedom without giving them the chance to get a headstart down the road to financial ruin.

When I got my first credit card I was 18. I was financially clueless. I was clueless in everything else too. But especially financially. A good friend and mentor advised me to get a credit card so I could establish credit history and get a decent credit score while I was still young. He also advised me to keep the limit low. This was his advice:

“Get a low limit credit card. Everyone screws up and maxes out their credit cards at least once in their life. You’re better off doing it with a $500 credit limit than with a $5000 credit limit.”

He couldn’t have been more right. Sure enough, I maxed that credit card out soon after I got it. Luckily it was only $500 worth, and I only had to see one finance charge on my statement to realize I didn’t want to misuse credit cards ever again. I’ve made my mistakes since then, but I’ve never forgotten the lesson learned from my first credit card.

For parents who want to give their teen an even safer credit learning tool, there are prepaid credit cards. In a sense, it’s not a credit card at all. It’s a charge card. What that means is you load it up with whatever amount of money you’re okay with your teen losing, and then let them experience making purchases with the plastic.

If nothing else, using a prepaid credit card should teach kids that credit cards are ‘real money’. In other words, you may not take the cash out of your wallet and hand it to the cashier, but it’s money you’re responsible for. When you run out of money on the prepaid card, the card is useless. That’s a great thing for a kid to get used to. It should help them understand that credit cards are a tool to be used intelligently.

Secured Capital One Credit Cards

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One of the best ways for any person to restore their credit is by getting a secured credit card from a reputable bank. I have to say that one of the best issuers out there is Capital One. There are some concerns that critics have brought up about secured Capital One credit cards, but there are plenty of people out there that have strong relationships with Capital One. They are definitely worth your time to take a look at.

Capital One is a Virginia-based bank founded in 1988 by Richard Fairbank and Nigel Morris. They are well known for their innovative strategies with their products. They are the fourth largest customer of the United States Postal Service. They recently merged with North Fork Bank for $14.6 billion dollars. They have moved up quickly because of their diversity with specializing in many different forms of consumer lending such as credit cards, home loans, auto loans, banking, and savings products. Their diversity has paid off well, as well as their impressively catchy commercials. Many people recognize their slogan, “What’s in your wallet.” Capital One continues to go against the trend by being a “monoline” lender (only consumer lending) and then going into retail banking.

There are some concerns with Capital One about that even though they have been very successful. Their stock has been flat for the past half decade and there is speculation that they will be bought up by larger company. This shouldn’t hold you back from getting a secured Capital One credit card because even if it is bought up, that shouldn’t hurt your credit or your contract. Sometimes that might result in better rates and fees.

Whether you are getting Capital One secured credit cards in Canada, America, or wherever they are often criticized for offering multiple cards to people with poor to no credit and that can be a huge problem with numerous maxed lines of credit and late payment fees escalating. Some consumer advocates consider this to be predatory, but obviously you have to decide how you spend your credit cards. Capital One and no other bank will force you to spend your card, so that point tends to be less valid to me.

A point that is more valid to me is that Capital One will not disclose their customer’s total credit limits to credit bureaus, but they will mention the spending habits of customers and what they do with the cards. This is unfortunate because the FICO score is determined by the limits extended to a credit card consumer compared to the amount of credit used. In turn this can hurt your FICO score. So that is a concern that you should pay attention to.

So look at other options that you may have, but be willing to get secured Capital One credit cards if you are looking for nice small limits that you can use to temper your expenditures. This might be a good initial step and if you do get a Capital One card then look at another big bank like JP Morgan Chase to get a card that will be more easily recognized for your FICO score.

Sterling Bank and Trust Secured Credit Cards

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From time to time it’s worth taking a look at an individual credit card company with regards to what they offer the credit consumer. Today we’re reviewing Sterling Bank and Trust secured credit cards.

Sterling is a big name in banking; they’ve been around for a while now and our research tells us they’ve done a pretty good job. First a little background about the company. Sterling has been around since 1984 when it was focused mostly on mortgage and lending services for homeowners. As the bank thrived and grew, it expanded into commercial real estate lending and other credit services. The bank originated in and now has offices in Michigan and several in California. In addition to credit cards, Sterling offers its clients checking, money market, and savings accounts along with business services and certificates of deposit.

Thinking of going to Sterling Bank and Trust for secured credit cards? It’s probably a good idea. We looked around for reviews and people had good things to say about the company. One reviewer on epinions.com had only good things to say. Her story is probably similar to a lot of people out there, maybe even you. She said she and her husband had always struggled with bad credit and had a hard time getting approved for credit cards.

Her husband saw an ad for the Sterling Bank secured credit card, they decided to get it, and it’s been only good things since then. Here’s a summary of a few of her favorite parts of the card:

1. She didn’t have to worry about getting approved – they’ll approve virtually anyone with some money for a deposit.
2. The card is helping them improve their credit.
3. She didn’t have to worry about falling behind or spending money she didn’t have because the only money on there is secured by her deposit.
4. She didn’t have to wonder or worry about what her credit limit was – she set it.

As an added benefit, you can use your card in other countries, with only a few exceptions. They’ll also let you Western Union money to your account if you happen to be close to your payment deadline and it’s the only way to get your money there on time.

The only con our reviewer mentioned was having to wait a long time to receive her card, because the company didn’t offer rush service. I’m guessing she had to wait the standard four to six weeks for the card to arrive.

The Sterling Bank and Trust Secured Credit Card passes our review with flying colors. This is a good tool to help you move your credit in the right direction without putting yourself at further financial risk.

Best Credit Card Deals For Student Credit Cards

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There are a lot of options for you to take a look at. The best credit card deals are going to depend on what you are looking for and what type of credit history that you have. Obviously the best deals are for those that have a higher credit score. If you are in the 700′s or 800′s then you are going to be just fine. I don’t think you will have to worry about high interest rates and if your credit is that high then you probably don’t even care about rates anyways because you are probably very effective in paying all of your bills on time.

So before I discuss anything about credit cards, make sure that you are willing to find out where your credit is and take a look at what you can do to improve your credit score. You can make multiple payments a month and contact any creditors that you owe to pay off debt. Then you can make sure that you have a checking and savings account open. Have a couple credit card accounts that you keep in good standing. Don’t take on a lot of other debt if you can and then it will just take time of good payments that will help you to improve your credit.

So after you have improved your credit then I would look at a major credit card issuer like Visa, MasterCard, or Discover. I have seen a lot of Orchard Bank Credit Cards for students and also a lot Capital One for people with poor credit and looking for lower limits. If you are looking for lower interest rates then I would say that Capital One is good card. A lot of cards will offer very low introductory rates. Be aware that this could change in a heartbeat. So it is important that you are able to check out the terms and conditions to see what is required from you and what obligations the company has. Many only need 15 days to notify you that they are going to change the interest rate.

I suggest that after you have figured out where your credit is, decide what is important to you. You might want a higher credit limit and you are willing to sacrifice your interest rate to get it or maybe a limit might not matter, you just want to get a good interest rate. Many of them will be around 15%. If you can find one lower then that for more than just an introductory rate then you will be doing well.

Free Student Credit Cards

What’s the first word that comes to mind when you think about being in college? Broke. That was me. I was broke from the minute I walked into my first college class until about six months after I finished my last one. Then I finally had job and a little money, and I was able to move past the beater apartments and ramen noodles.

But while you’re in school you have to spend most of your time pinching pennies. That’s why when you’re looking for credit cards you can’t deal with bunch of fees. I mean, they’re already going to charge you high interest rates, given your lack of credit history and a fairly low credit score.

It is a good idea to get a credit card or two while you’re in college. When you get out of school and get that first job, you’re going to want to buy a car to replace your Geo Prizm and maybe even buy a condo or a townhouse. If a bank is going to even consider giving you the loan for your toys and your new pad they will need to see that you know how to use credit. In other words, they need to know you’re probably going to pay them back.

Check out this list of student credit cards that can help you get the right start in the world of debt and credit. Use them wisely.

• Bank of America Student Visa Platinum Plus Credit Card- no annual fee.
• Capital One Platinum Student Credit Card – no annual fee and no balance transfer fees. Retail savings program with yahoo!
• Discover Student Clear Card – no annual fee and 0% APR for six months.
• Discover Student Monogram Card – 0% APR for six months and choose your own design.
• Discover Student Tropical Beach Card – 0% APR for six months and no annual fee.
• Discover Student Card – 0% APR for six months and no annual fee.
• Citi Bronze/AAdvantage Card for College Students – no annual fee and free membership into American Airlines rewards program.
• Citi Platinum Select Card for College Students – 0% APR and no annual fee.
• Discover Open Road Card for Students – 0% APR and no annual fee.

Most of these cards also offer online account management. And one more thing – they’re going to give you a small enough credit line to keep you from getting yourself into trouble while you’re in school.

Secured Chase Credit Cards

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A Secured Chase Credit Card is one of the best types of cards you could get. Chase is a well respected company that is I suggest that you use because of their track record and long running history. They have allowed for many people to overcome bad credit issues that have hurt them in the past. I can think of plenty of people that I have encountered that have struggled through credit and have struggled when it comes to getting mortgages, loans, or using their credit in any manner to achieve their dreams and goals.

Many people ask if secured credit cards are bad for your score and a secured Chase Credit Card is a perfect example of proving this notion incorrect. I have seen plenty of unknown establishments on the Internet that are offering money or lines of credit, only to find out they just might as well be hard money lenders instead of stating themselves as a bank. These companies are finding ways to nickel and dime you to death with application fees, transaction fees, processing fees, and a billion other types of fees that can be made up out there. These are just doctored ways to make more money in every possible way. It is the beauty of capitalism in the United States of America.

You don’t have to pay a lot of these unnecessary fees with a company like Chase because they don’t need to nip at you a dollar here and a dollar there. JP Morgan Chase is one of the oldest financial service firms in the world. They have over $1.4 trillion in assets and currently they are the third largest financial service provider in the United States. They merged with Bank One in the last couple years and brought over Bank One’s solid CEO Jamie Dimon. You should take that into consideration that they probably have no reason to destroy trust with you as a customer because your money is not worth nearly as much as their credibility and reputation with you and other customers that they have.

Chase has some of the best secured and the best partially secured credit cards for a middle class Joe to find a chance to regain their trust with credit bureaus. You are not going to have to worry about whether they will report to the credit bureaus or not. You don’t have a trillion dollars in assets without building trust with credit bureaus over the years and treating your customers the right way.

This shows us why it is so important to know who is providing you with the card and the issuing bank. Any one can get a Visa or MasterCard logo, but that doesn’t mean that you have the best bank for you. This is worth your time to go out and make sure that you have a quality bank like JP Morgan Chase to help improve your credit and leverage yourself in the proper manner.