CREDIT CARDS 101: Secured Credit Cards Explained (What is a secured credit card?) скачать в хорошем качестве

CREDIT CARDS 101: Secured Credit Cards Explained (What is a secured credit card?)

Wondering how to build credit with no credit? A secured credit card could be the answer you’ve been looking for! Click “Show More” to see Ad Disclosure. 💳👉VIEW CREDIT CARD OFFERS! https://markscreditcards.com/offers 🛍 RAKUTEN - Earn Cash Back! http://markscreditcards.com/rakuten ‼️ GET FREE STOCKS FROM WEBULL when you open an account & deposit $100: http://markscreditcards.com/webull 🎬 VIDEO: When To Pay Credit Card Bill To Increase Credit Score:    • CREDIT CARDS 101: When To Pay Credit Card ...   SECURED CREDIT CARD DEFINITION A secured credit card is a credit card that requires a deposit in order to open the account. You’ll then get a credit limit that’s usually equal to the amount of your deposit. Example: A $300 deposit gives you a $300 credit limit. WHAT THE DEPOSIT IS FOR The deposit reduces the risk to the card issuer and makes it much easier for you to get approved. Example: If John gets a secured credit card and can’t pay his bill, the card issuer can use the money from his deposit to pay off the card (and then likely close John’s account). PURPOSE OF SECURED CREDIT CARDS Building credit for the first time (i.e. no prior credit history) Building credit with a short credit history (i.e. within your first year) Rebuilding credit after a financial hardship EXAMPLES OF SECURED CREDIT CARDS Discover it Secured Credit Card Bank of America Cash Rewards Secured card Secured Mastercard from Capital One Citi Secured Mastercard BankAmericard OpenSky Visa Credit Card Q&A SESSION Q: How big should my deposit be? A: At least the minimum required (varies), and as much as you can comfortably afford. NOTE: ‘Credit Utilization’ refers to how much of your credit limit you’re using. In general, using less than 30% of your credit limit will help you build your score higher & faster than if you were to use a high percentage of your limit Q: Are secured cards the same as prepaid cards? A: No. See the differences below. Secured Credit Card An actual credit card Builds credit (information reported to credit bureaus) Doesn’t store funds / not reloadable Functions like a short-term loan (buy now, pay later) Prepaid Card Not a credit card Does not build credit (information NOT reported to credit bureaus) Stores funds / often reloadable Functions like a debit card (buy now, pay now) Q: Can I use my deposit to pay my balance? A: No. Your deposit is not kept on the card. Rather, it’s held by the card issuer as collateral against your credit line. It cannot be spent or used to pay your bill. NOTE: If you do not (or cannot) pay your bill, the card issuer can use your deposit to pay the balance. Then they’ll likely close your account & report a negative mark to the bureaus as an account in collections. This can hurt your credit score for years. Q: Can I get my security deposit back? A: Yes. This varies by bank, but there are usually 3 main ways to get your deposit returned: 1. EARN your deposit back after responsible use of your card over time (usually 6 - 12 months). Often issued as a statement credit. 2. GRADUATE from a secured card to an unsecured card (i.e. a regular credit card) after responsible use of your card. 3. CLOSE YOUR ACOUNT and pay off the entire card balance. Q: Will my credit limit always equal my deposit? A: In most situations, yes, your credit limit will equal the amount of your deposit. However, exceptions do exist based on the bank or card you apply for. Q: Can I get a credit limit increase on a secured credit card? A: It depends on the card issuer’s policy & the card in question. Some issuers offer limit increases without an additional deposit based on your use of the card over a period of time. Other issuers may allow limit increases by increasing your security deposit. Some secured cards do not offer limit increases. Disclosure: This site is part of an affiliate sales network and receives compensation for sending traffic to partner sites, such as CreditCards.com. This compensation may impact how and where links appear on this site. This site does not include all financial companies or all available financial offers. The content in this video is accurate as of the posting date. Some of the offers mentioned may no longer be available. Mark Reese is not a financial advisor. #creditcards #howtobuildcredit #creditcardsforbeginners