What is secured credit card?

A good history with your credit is what will give you success financially. A credit card is one of the best ways in this context that will help you build a history for your credit while it also helps in being very convenient when you ought to shop around.

If you are a person who gets into bankruptcy, then you will need to hand in all your credit cards to the trustee. After all this, once the person has been discharged from bankruptcy then it is many a times a risk of good credit as that person has no more debts to clear off. Regardless of all these, a bankrupt that has been discharged finds it really difficult to get a credit card that is new. One easy way of getting a credit card for such people is through a secured credit card. A secured credit card is a card that acts as a backup for all the funds that have been deposited by you with a financial institution. This credit card looks so much like a normal credit card and also acts like one but it will have some limit. This limit totally depends on the amount of money that is used to secure the card. This credit card is actually a very good way of getting to rebuild the rating of your credit. Every month there is a report that goes to the credit bureaus regarding your credit. Therefore if you make some payments regularly then the credit history of yours will look so much better.

These secured credit cards are available all over Canada. However you will need to deposit some minimum amount of about five hundred dollars for this sort of a credit card. There is also a fee that has to be paid ever month attached with it. This is around six dollars. The best thing about this card is that the limit of your credit is hundred percent of the security deposit. The approval of this card is guaranteed virtually.

With this secured credit card you are given as much as credit that you will hold with any other normal credit card. However you are also needed to provide some funds for security reasons before you get to access your very own account. These funds for security purposes can be pretty low and go down to about seventy five dollars. Making use of such type of credit cards sometimes is a real great way of building your credit history. You can reserve a room in a hotel, rent a car and also buy all those lovely things online with this credit card. This credit card does help in re establishing your credit history even if you have been filed for bankruptcy. But make sure that your bills are all paid right in time to get a good credit history. However you will need to be a major in the province of your residence to be able to qualify for this guaranteed status.

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