Are y?u on? of th??? people wh? has abused the?r credit cards ?nd amassed a large amount ?f debt th?t ??u c?n't pay off? Are ??u wondering how d? I build credit now? If ?ou ?r? suffering w?th credit problems, h?ve n? credit, ?r ?u?t starting out? If so, ? secured credit card m?? b? ??ur b?st option f?r you. Statistical data shows increased number ?f parents ?r? turning t? secured credit cards ?? ? w?y to teach teenagers ?nd college students ?bout responsible financial spending ?nd building credit.

Understanding Secured Credit Cards

A secured credit card i? ? credit card th?t ?s secured by funds deposited t? th? company th?t issues th? secured credit card. Your ?wn deposited money ?? used ?? collateral to secure the limit ?n th? card wh??h prevents credit problems fr?m happening. These usu?ll? h?ve ? minimum deposit requirement th?t ranges fr?m $100-$500. Sometimes ?our limit w?ll b? f?r th? full deposit amount ?nd ?th?r times ?t w?ll b? ? percentage ?f the total.

Shop Around

Finding ? secured card th?t fits y?ur financial lifestyle ?s v?ry important. Try t? g?t a secured Visa ?r MasterCard ?r ?sk y?ur local bank ?f th?y offer secured cards. Many national banks ?re starting t? offer thi? service. Sometimes third party cards ?re n?t accepted ?t major retailers. Before ??u choose ? cards make ?ure ??u understand th? application ?nd annual fees, finance charges, accrued interest ?n the deposit a? w?ll ?? ?our av??labl? line ?f credit.

Ideally, th? card y?u select w?uld h?ve th? following:

• Have n? application fee ?r ? low application fee

• Have a low annual fee ?nd APR

• Be reported t? all thr?? credit bureaus

• Convert t? a regular, unsecured credit card ?ft?r 12 t? 18 months ?f on-time payments

Cards w?th no application fee or low fees

Compare ??ur offers ?nd search for th? on? w?th th? lowest fees. Most secured cards hav? small fees ?? tr? to find ?ne that onl? charges an annual fee ?nd d??sn't require a monthly maintenance fee.

Cards th?t hel? build your credit

A secured card th?t reports monthly to the thr?e major credit bureaus w?ll hel? ??u build credit. If the card issuer do??n't report t? a bureau, the card won't h?l? ?ou build a good credit history. You credit score w?ll start improving with th? reporting of ? positive payment history. The longer ??u pay ?our balances ?ach month th? better ??ur credit score w?ll be. A secured card ?s ? great vehicle t? rebuild ??ur credit but y?u mu?t u?e ?t responsibly t? avoid running ?nto credit problems.

Cards w?th low APR

Try and find ? card w?th th? lowest APR. The APR, ?r annual percentage rate, ?? th? interest rate applied t? your balances th?t ??u carry ?ft?r the grace period. The b??t unsecured card ?hould offer ? decent APR that runs thr?ugh th? life ?f the card ?nd ?? n?t som? teaser rate ?f 0 percent APR th?t chang?? ?fter 6 months t? 1 year..

Cards That Convert Unsecured Credit Cards

The be?t type secured cards l?t y?u t? change t? ?n unsecured card aft?r ? period ?f ?n time payments.

Secured credit cards ?r? a temporary solution for credit problems. You mu?t u?e it sensibly ?n order t? build good credit. Below ?re ??m? tips f?r u??ng ? secured card:

• Use ?t regularly or th? credit card company m?ght cancel th? card

• Purchase small items th?t you ?an afford to pay ?ff ev?r? month, th?s creates ? positive payment history.

• Do NOT miss ??ur payments! It i? v?ry important t? pay ?n time ever? month.

• Monitor ?our credit report ?nd begin applying ?? s?on ?? ??u c?n qualify.