Are you a credit card holder? Ever feel the sensation of shopping incessantly by using a credit card? Then what happens? Your bill may swell and you want to reduce shopping on full rage using a credit card. Just open a secured credit card. It is the best solution for those who like to forget themselves when shopping by credit card. Security deposit credit card has a special mechanism that’s very profitable when you are trying to save money. Or maybe you want to increase credit score for a better future. Want to know more about this credit card? Let’s check this out on the following discussion.
The Secured Credit Card Explanation and Details
As everyone knows, credit cards are unsecured debt. So, when you cannot afford to pay your bill, then the card provider pretty much cannot do anything on it. To maintain their sustainability, some credit card providers eventually open the security deposit credit card. With the early deposit, there will be a guarantee if you cannot afford to pay your credit card bill. In addition, to avoid the bill that accumulates, your credit card limit is adjusted for your initial deposit. Well, most of the time, it’s not more than $1000 because you are supposed to pay it whole at the beginning of the month.
As explained earlier, this credit card is a great choice for the early days of holding a credit card. It works in a way that you have to pay the security deposit credit card in advance of the month. When the amount has met the limit, you can spend it.
In addition, the initial fund that you deposit works as a collateral payment. Some people may think that this credit card is complicated and increasingly troublesome. In a short term, it might be. But in the long run, you will be thankful that you pick this security deposit credit card.
The Main Benefits of Secured Credit Card
In fact, the security deposit credit card can help you not to waste money indiscriminately. When using an unsecured one, you will get used to spend money because you feel there is no ‘real’ money involved, until finally the bill appears at the end of month. By using a secured credit card, you can estimate your credit card expenses by adjusting to your early deposit.
In addition, you can use security deposit credit card as monthly compound money bank. For your information, if you don’t max out your limit on the following month or you managed to keep up with the bill, then your early deposit can be withdrawn or redeem to your account. In this way, you can save more money than you previously thought.
Furthermore, one of the hallmarks of secured credit card is its ability to accept the low credit score and increase it if you pay the bills on time. This is what makes people with bad credit score prefer to use the security deposit credit card rather than unsecured one.