Credit Card Solution - A Secured Credit Card

The ability to make purchases with a credit card has become almost a necessity in everyday life, and especially if you want to buy something through the internet.  If your bad credit is standing in the way of obtaining a credit card, or you are just starting out and have NO credit, here is a solution that can work for you!

Secured Credit Cards    

If your financial situation makes you a high credit risk, and you cannot obtain a traditional credit card, many financial institutions now offer a "secured" credit card.  This means that you need to establish an amount of "security" to offset the risk associated with non-payment of your credit card purchases.

What is the Required Amount of "Security"?

The issuer of a secured credit card will require that you deposit money into a separate savings, money market, or CD account, which will act as your "security".  The amount of security will vary depending on your credit history, income and the credit limit you need.  The amount of credit often becomes your credit "limit", meaning that you cannot charge more than the secured amount within any given billing cycle.  If you pay your bill in full and on time each month, you once again may start incurring charges up to the limit of your security.

Benefits of Secured Credit Cards

A secured credit card may be used in exactly the same way as an "unsecured" credit card.  Nobody knows the difference except you and the issuer.  If you are trying to get your credit back on track, or you are a student trying to establish credit, this can be an excellent solution -- if you make your payments in full and on time, and do not go over the pre-established spending limit.  While the credit card is "secured" your good payment habits will still show up on your credit report and actually begin to improve your credit rating. 

Good tip!  Make your security money work for you by putting it into the bank's highest interest investment option for the amount of security money you need.  This way, the "security" money is actually growing and increasing your limit with time.    

Selecting the Issuer of your Secured Credit Card

Order the ParkAveCredit.com "Inside Track" to Credit Cards.   To place your order, go to our Home Page and Click on "Credit Cards":  Click Here.  Banks want your "security" money and most banks offer secured credit cards.  If you have an established relationship with your local bank, meet with your bank officer and explain your situation.  They can also provide secured credit cards.