How to Determine The Best Secured Credit Cards

The tips in this article are suggestions for you to contemplate should you be interested in getting a low credit line credit card.

Difficulty: Moderately Easy

Instructions

Things You'll Need:

• help in rebuilding your credit with a low credit line credit card
• application for a low credit line credit card

1. 
    

   If you are thinking about getting a low line of credit credit card there are three major questions you will want answered.

2. 
    

   The first question you need ask is how much is the cost of the card.
   
   Some of these types of credit cards not only cost money to activate, but have a yearly activation fee. If the initial line of credit is for instance $300.00 and the fee is $65.00, your available credit will in actuality be $235.00 to start off with. Many low line credit cards also do not allow you to pay that fee off immediately. The fee is charged to the account monthly.

3. 
    

   When applying for these types of cards, you will want to find out if it is a fee to pay by check or debit card over the phone also. These additional fees could be as much as $10.00 and also will be charged to the account on top of the interest and other fees.

4. 
    

   Low line of credit credit cards can be costly if charges every month are not paid in full. They like store cards could have interest rates as high as 29% interest. Try looking to see if nothing else that the interest rate is below 21%. The average is between 18 and 24%.

5. 
    

   These types of cards could be could for a young person or someone trying to rebuild credit. Use them wisely and for a short period of no more than 2 to 3 years. Having a low line of credit card could have an adverse effect. Generally, if as a customer you are paying your bill off without lateness, the company will keep increasing your line, but it may not exceed $500.00 if your line starts around $300.00 for a long time.

Tips & Warnings

• If you are in good standing and all is going well in other financially aspects of your life, you don't mind sticking with the company, after a year or two, inquire about having the activation fee lifted and perhaps being giving a much larger line of credit.
• The drawback for asking of course for a higher level of credit is that you could be denied and it will go on your credit report that you were.

Resources

• How to Not Use Your Credit Card
• How to Take Advantage of a Recession

[cherry67]

on 8/11/2009 good tips-very good tips here

[Rachellewms]

on 7/20/2009 Good tips about finding a secured credit card. 5*

[DreamLiving]

on 5/28/2009 The fees can be ridiculous. It's best to get a card not to use. If you do use it, make it a planned purchase you pay off the next month. Doing that every four months shows a record of paying on time. Remain debt free is the best thing to do in these troubled times. Great leads in the article.

[cherry67]

on 5/27/2009 such good advice-thank you!

[dasbootjoe]

on 12/5/2008 Great advice! Thanks*****