Are you looking for good credit cards for people with bad credit? If so, you have landed on the right web page. This article deals with the subject of secure credit cards. These types of cards are specifically marketed at those individuals who, for one reason or another, have developed a poor credit history. Very often, secure credit cards give people with this type of credit history a second chance. So, what are the main features of a secure credit card and how to they work?
Because credit card companies see people with a bad credit history as a poor financial risk, it is often impossible for them to get an unsecured credit card. If you are in this position yourself, then I’m sure this will be all too familiar to you.
Secure credit cards (also labeled as bad credit cards) get around this problem by requiring the account holder to have cash on deposit which is used as security by the credit card company against default (hence the term secured credit card).
The main advantage of these types of cards is the fact that they also come with a reasonably low APR by virtue of the cash deposit required. This fact in itself also makes the card repayments more affordable, ensuring that your credit history is unlikely to be further adversely affected.
If getting heavily into debt is a big worry of yours, you can relax as this is unlikely to happen. This is because your credit limit is determined by the amount of cash that you initially opened the account with. Usually, your credit limit will never be more than the amount of cash you have on deposit.