|
Simply stated, secured credit cards are "secured" by your money. A deposit is required before secured credit card providers will issue you a card. The amount of your deposit determines the credit limit of your secured credit card. Therefore, all purchases or payments made with your card are secured by your deposit, which the credit card provider keeps as security against your credit limit. Secured credit cards are not "Free". In addition to putting up a deposit against the credit limit on your credit card, you can also expect to pay a yearly service fee. But, make your payments on time and completely pay your balance each month, and you can go indefinately with never having to pay a dime in interest and your only additional expense being the yearly service charge. Pretty cool, eh? |