Secured Credit Cards
Security on a Stick
Okay, secured credit cards aren't on a stick. But they do offer credit card companies some security from people with a poor credit history. With secured credit cards, nobody has to worry about anything. You don't have to worry about late fees or over-the-limit fees, because when you've spent all the money on your secured card, it is declined. No "floating" you the amount once or twice to get you by, then charging you a late fee. They are the ultimate bad credit credit cards because they help you rebuild your credit and teach you how to rein in your spending by their very nature.
You don't have to have bad credit to get a secured card, either. Secured credit cards are an excellent way to teach students responsible credit card spending habits. Most college students don't want the embarrassment of having their card declined in front of their friends (then again, who does) so if they know how much their limit is and keep track of what they spend, they can avoid that situation--and overspending--entirely. That way, when they get out in the "real world" and apply for a regular, unsecured credit card, they'll know how to use it wisely. It will be a habit to them.
When you apply for credit cards, consider secured cards if your credit is bad. You'll really be doing yourself a favor.
All material copyright © 2008 About Debit Cards. All rights reserved.
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