secured credit cards?

Question

i have zero credit. get paid under the table. i need to build my credit. I was on a website that has secured credit cards platnium cards. The apr is 19%. Are these good starter cards? I never tried for a JcPenny's card or nothing like that because i don't think i can get a card with out actually getting a paycheck. so i thought a secured card would work okay for now? any thoughts on that?...also if i would get the card how does it work and if i would buy say a $30 pair of jeans how much would i have to pay when the actual bill would come. beens the apr is so much.19%?

Answer 1

You've definitely got the right idea about secured credit cards to build your credit. My suggestion would be to open a checking and savings account with a bank or credit union as well. Some major banks like Bank of America, Citi, Wells Fargo, and USBank all offer secured credit cards. You can think of this as building credit with a savings account, since that's basically how it works. You place a deposit which is usually tied to a savings account that's used as collateral in order to get a credit limit of the same amount. For example, if you put up a $500 deposit, then your credit line would be $500. The deposit wouldn't be able to be used to pay for whatever's owed on the card unless it became delinquent. Also, the deposit does gain interest while you're building credit and you can also increase the credit line by simply adding to the deposit. The higher the limit while you're building credit, the better because it's good for your credit to have a large cushion between the amount of credit your have avialable and the total amount of debt you have. A good strategy to use the card would be to make a small purchase (like those $30 pair of jeans you mentioned in your question) and pay it off in full on time every month, to show activity and boost the credit line as much as possible. Usually after a year or so of pyaing on time and keeping the balance 0, the card either converts to a regular card, or a better card is offered, an most importantly, the deposit's no longer needed and given back with interest. So you would have a high limit credit card and have established a nest-egg for yourself in the process.

I took the liberty of posting several links to secured cards that shoudl help you out.

Good luck!

Answer 2

With secured credit cards you get to choose which one you go for as it is your money you are using, so getting one with an apr of 19% isn't very smart at all. Saying this, in the end it doesn't really matter what the APR is because you are just paying the bill in full, so the only thing that matters is what the yearly fee is, just make sure it is a low fee, obviously.

RE:
Secured credit cards?
i have zero credit. get paid under the table. i need to build my credit. I was on a website that has secured credit cards platnium cards. The apr is 19%. Are these good starter cards? I never tried fo...

Answer 3

I am doing the same thing with a $300 card accept I charge the card half way to 150$ and pay it off every month so there is no interest. The larger the amount the more credit but keep in mind if you're card has more than half its balance used up at the end of every month it actually lowers the score and sends up red flags . So charge half the balance every month and pay it immediately. I am using the Bank of America secured Visa and it so easy to pay it off on line before its even due with a linked checking account . Really I consider it no risk since I am paying no interest and I just use it for groceries. Its the same as using my check card accept I get credit so why not charge a little more and receive the benefits. Good luck with your credit ! about the comment on the high fees Bank of America does not charge those silly fees . Mostly the on line No name banks do that but not a reputable bank some reputable banks may charge an annual $50-60 but that's pennies when it comes to the hardships you can suffer from bad credit

Answer 4

You do need to read up a bit on how credit cards work. "APR" means "annual percentage rate", which is how much interest you'd pay if you did not pay the bill off for a year. That's only 1.5% per month. And you generally have a "grace period" for 20-25 days after purchase when you can pay off the debt and pay no interest at all.
A secured card is how I got my first card. I had $2000 in a savings account at my bank and applied for a secured card covered by that account. I could not use the $2000 for the entire time I had the card, of course.
Even when you apply for a secured card, though, your employment and income information is considered. You should start working on an above the table income source soon.

Answer 5

With a secured card, you secure the card by depositing cash up front in a savings account or CD. The amount of funds you place on deposit will generally match your credit line. Your card issuer maintains a lien on the deposit account, which you stand to lose if you fail to make timely credit card payments.
While many people have heard of secured credit cards, unsecured or regular credit cards are more common. With an "unsecured" card, the issuing bank has no right to take specific assets of yours if you don't pay your bill. Instead, the bank would have to sue you or force you into bankruptcy to collect.
A secured MasterCard or Visa looks just like a regular one, and the law ensures that it has all the same consumer protections. However, a secured card typically carries a higher interest rate. But a secured card can be a good deal because it offers you the convenience of having a credit card while you work on establishing or rebuilding your credit.

I suggest you to study diferent options of cards and banks.....

Here you have a great site with lots of info so you can compare and choose what best fits your needs.....

Good luck...!!!

Answer 6

Secured cards are a good way to build credit with a single financial institution. They rarely report to the credit bureau (unless you are late). It is a good starter card, but shop around get a good APR, also make sure that you are getting a good rate on your "investment", any interest your deposit makes is yours.

Also as long as you pay your bill in full every month there is not interest charged. However one day late can cause fees and lots of interest so make sure you are good with due dates. They can change them sometimes.

Hope this is helpful

Answer 7

Have you tried Orchard bank and First Premier?

Anyway, yes secured credit cards are a good way to build credit.

Use them for everyday things be careful never to exceed 30% of your credit limit and pay them off in full before the due date.

This will do two things, first it will establish a good pay history and second it will keep your debt to credit ratio very low. These two things alone make up 65% of your credit score.

After 8-10 months you should be able to get a regular credit card.

Answer 8

In your situation a secured card would be a good idea.

If you charge $30 on the card and pay it in full when the bill comes, you pay no interest. You only pay interest if you carry a balance.

The best way to build your credit history is to charge only what you can pay in full each month. After 6 months to a year, you should have a good payment history and can apply for a regular card.

Answer 9

A Secured credit card is a good idea to start with. You don't pay any interest if you pay your balance in full each month.

Answer 10

Then better you speak to the bank or agent.Just take a look at the below link to learn more about credit cards