Do you still think of a secured credit card as the last resort loan opportunity? You deeply mistake. Although it can help borrowers improve their borrowing score when theirs is too low, they can get it even with a non-injured lending history. And there are some people who prefer secured to ordinary ones. Why? Because if you prudently use all its features you can use it less costly when owning a card with astonishing rewards! And here are the main features making them lucrative.
4 Advantages of Secured Credit Cards:
1. Very low annual payment: These products are designed for people with financial troubles that is why they don’t offer large rewards. That is why its amount of annual payment is much lower than for plastics with lucrative perks. Those who don’t fly with airplanes or rest in hotels, will choose them rather than pay $100+ in annual fee;
2. No credit check: Secured credit products are for those who don’t like bankers dig into their borrowing histories. That is why when borrowers apply for one of the Top No Credit Check Secured Credit Cards in 2017, they will not be refused if something goes wrong with their credit. Anyway, past payment failures are counted less by scoring services so if owners manage their further finances properly, their borrowing history will clear up;
3. Grace period: Although APR on secured credit cards stays very high, clients might not pay interest during a particular period. It is called the grace period and if they pay their balances in time during that period, they spend nothing on maintaining this card. Paying a deposit of a couple of hundreds, they pay nothing during the next 6 months;
4. Improving your borrowing score: Yes, if you are a student, who has never before applied for a loan, you should apply for a secured plastic.
Do You Really Need This Type of Plastic?
At about seventy percent of Americans have a lot of mistakes in their borrowing reports, used for score calculation. So before you decide to apply for a secured solution, watch out whether your report includes right information. Maybe, you need to ask for removing some records and your score will be alright. If you cannot fix the problem this way, it is not a problem to apply for the secured credit card giving you fewer opportunities.
Maybe, you will not even seek other ones as this one has enough for supporting you in your monthly expenditures. But it’s up to you to take a final decision. We hope you’ll make a smart choice. Good luck!