Secured and Pre-paid Credit Cards

By: Barbara Camie

Normally, the cardholder should deposit between hundred percent and two hundred percent of the sum amount of the credit desired. Therefore, if cardholder puts along $1000, she or he will be set credit up to $500-$1000. Sometimes even on the protected card portfolios few credit card issuers provide incentives. In this situation the credit needed may be noticeably lower than the needed credit limit, as well as can be very low, say, up to ten percent of the desired credit limit.

These deposits are held in very unique saving accounts. Issuers of credit card provide this when they notice the delinquency has notably lessened when the purchaser thinks that he has a bit to drop if he will not pay back his balance. A secured credit cardholder can make regular payments like she or he would do with that of a regular card payment. But should she or he default on the payment, the credit card issuer can recover the price of the acquisition rewarded to the traders away from the deposits.

The greatest advantage of having the secured credit card for any individual with no credit or negative history is what many companies report often to the main credit bureaus. It allows for building positive credit card history. Secured credit cards allow a customer with no credit or bad credit history to possess a card otherwise it may not be available. They offer these cards more often so that customer's can re-build their credit again. Secured credit card is available with MasterCard and Visa having both logos on the credit cards. Service and fees charges for these credit cards frequently go beyond those charged, which are for simple non-secured credit cards, but for customers in specific situation, these card are sometimes less costly in comparison to unsecured cards, even if you include deposit security.

A prepaid card is not actually a credit card, no credit is provided by the issuer of the card. This prepaid credit card is having a MasterCard and Visa credit card brands with them as well as they can be operated in same ways. Many people want an appropriate solution to rebuild their credit; latest changes have permitted few companies of credit card to provide prepaid credit cards in rebuilding the credit. They are very hard to get and have huge interest rates and huge APR fees.

After the purchase of the card, cardholder can fill the amount they want in their cards and can use the card for their purchase. These cards are given to minors because no credit lines are involved. The great advantage of this card is that you do not required huge amount say $500 or much to start your account. Without borrowing any amount it will charge you rate of interest. Usually many more fees are applied to prepaid card.

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