What is a secured card?
Secured credit cards are almost exactly like standard, unsecured cards, except that they require the payment of a refundable security deposit before your account can be opened. With most secured cards, you can even choose the amount of your deposit, which becomes your credit limit. But otherwise, your secured card will work just like any other credit card. You’ll receive a monthly statement, and you’ll have to make at least your minimum payment on-time.
In addition, your payment history will be reported to the three major consumer credit bureaus. If you make all of your payments on-time, a secured card could quickly help you to improve your credit history and raise your credit score. And when you use your card, no one will know that it’s a secured card, and it will be accepted everywhere that other credit cards can be used.
Why you should consider a secured card
Your credit is an extremely important part of your financial health, and having good credit can help you to rent an apartment or get a home loan. Good credit is also important if you need an automobile loan or any other kind of personal loan. And the better your credit history is, the lower the rate you can qualify for. Your credit history can also be a factor in your insurance premiums and be considered as part of a pre-employment background check.
While you cannot build a strong credit history overnight, many secured card users find that their credit has improved enough after one year to qualify for a standard, unsecured loan, so long as they make all of their payments on-time.
Another reason to get a secured credit card is to enjoy all of the benefits of using a credit card as your method of payment. For example, it can be very difficult to rent a car or reserve a hotel room without a credit card. It’s also much safer to carry a credit card than it is to carry cash. Also, using checks is both more time consuming and more vulnerable to fraud.
When you use a secured credit card, you’ll receive all of the same legal protections that other credit card transactions have, such as the ability to dispute charges for goods or services you didn’t receive, or for those that were not as described. Thankfully, all credit cards that are part of the Visa network comes with a $0 fraud liability guarantee.
Finally, a secured card is an excellent alternative to the other credit cards often marketed to people with damaged credit. Although these cards don’t require a security deposit, they often have very large annual fees and monthly maintenance fees, along with much higher than average interest rates. When you consider the total cost of all of these non-refundable fees, they can approach or even exceed the amount of the refundable security deposit necessary to open a secured card.
About primor® Secured cards from Green Dot
Green Dot is one of the leading issuers of payment cards in the United States, and it offers four versions of its primor secured credit card. You can open a primor Classic or Gold Visa account with a deposit of your choosing of between $200 and $5,000. Your deposit will be placed into an FDIC insured savings account that earns interest, and it will be refunded to you when you close your account.
This card offers a fast, easy application process and you can be approved even if you have a damaged credit history or no credit history at all. The standard interest rate for the primor Classic Visa is a fixed rate of 13.99% APR, and it has a $39 annual fee. primor also offers its Gold Visa dwith a low, 9.99% standard interest rate and an annual fee of $49.
By choosing one of the primor Secured cards from Green Dot, you can have the chance rebuild your credit now, without paying large, non-refundable fees and high interest rates.