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Build Good Credit With a Secured Credit Card
Posted By Ron On November 8, 2011 @ 1:15 AM In Credit,Personal Finance | Comments Disabled
Life today isn’t easy without a credit card. Even if you intend to pay cash, you’ll need a credit card  to rent a car, secure a hotel room, or make an airline reservation. They offer a lot more protections and security than most debit cards when you’re buying merchandise online, and although you don’t technically need one to qualify for a mortgage , using a credit card  responsibly can mark you as a credit worthy risk when you want to buy a home. But what if you’ve never had credit? What if your credit needs to be repaired?
If you’ve struggled with credit in the past or if you’ve damaged your credit with late payments, over-limit fees, or too many inquiries, you may not qualify for a regular credit card. If you find yourself in this situation, a secured or pre-paid credit card  may be the only way to establish, or re-establish, good credit. You may have some questions about how a secured credit card  works:
A secured credit card  is a credit account secured by a deposit. Should the bill go unpaid, the money in the account can be used to pay that debt. For example, if you deposit $350 into the account connected to the secured card, you can charge up to $350. You may be able to add extra deposits to the account and increase your limit or the bank may reward you for on-time payments and increase your credit limit without those additional deposits.
It isn’t a walk in the park. Each credit issuer has different requirements for their applicants. Some will accept people with a recent bankruptcy, others will not. Some may require that the court discharge your bankruptcy  before accepting an application. Some have a minimum credit score , while others may not. Either way, you’ll have to go through an application process.