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Before you begin your secured credit card application there are some steps you want to take to ensure that you are getting the best available offer. Secured credit cards are perfect for people with less than perfect credit who are looking to reestablish themselves. Although all offers for a secured credit card may look the same, knowing the details will help you save money and obtain the best card that is suited for your needs.
The following tips will help you work through the process of finding an appropriate secured card. Use these tips as a guide and you should be able to make a good choice when it comes to your credit card.
Search and Compare Offers
Do a complete search of secured credit card offers online and compare the ones that are right for you. The website should offer a feature that lets you select multiple offers and display them side-by-side. You can see the differences between the offers and have a better ideal of which secured card is right for you before you make your choice and apply.
Understand The Applicable Fees and Charges
A secured credit card has higher fees and rates than an unsecured one due to the nature of the credit risk. Not all secured cards however offer the same rates. In order to minimize any potential surprises or increases in costs, you should know the following about a credit card before you complete your application:
- Know the annual percentage rate or (APR)
- Know the difference between the introductory APR and the actual APR when the card has been in use for a period of time
- Understand the different fees and charges
- Determine if the card charges a different APR on money taken out as cash versus money used for purchases
- Know if there are any penalty fees for late fee and whether these fees will cause a change in your APR
Some sights will allow you to enter application information and determine which card or cards best fit. This is good because the system performs the search for you and obtains a sort of “pre-approval” before you make your final selection. Look at the offers that come back based on the selection process that meet the reasons that are driving you toward applying. This will help make sure that you choose the right card on terms that are best suited for you and that helps you rebuild your credit.
