Low Interest Secured Credit Cards

by Mack Bartlett

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.

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