725 Credit Score

You can start a bank account and use your own money as collateral; it’s called a secure credit card. Remember “Secure” is when you take a loan and offer collateral as insurance if you don’t pay your loan back. A secure credit card is when you have to put a deposit down in order to receive the card. The amount of the deposit is what your credit limit usually is. This card typically has either a monthly fee or an annual fee so it generally is more expense than your normal unsecure credit card. Most want an unsecure credit card because it’s is less expensive but we always can’t get approved for it. If you are starting credit or need to correct some past mistakes dealing with credit cards a secure card is perfect for you. Because you are using your money as the deposit, you are almost always approved for the card.

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Unsure credit card is the best and the most common credit card. It does not require any type of deposit and you usually receive perks if you find the right card. The interest rates vary and are typically lower than secure cards. If you don't have a deposit this is the type of card you have. To get this type of card all you need is a name and social security number (Good credit is a perk).

Prepaid credit cards Pre paid credit cards are exactly what they sound like. They are credit cards you pre pay with money and use later. They are good for those who have no credit and no bank account. Many places don’t accept cash so this is a way to have a credit card without getting in debt with one. (Just open a bank account, there are so many free checking account offers out their)

Regardless of what type of credit card you have there are important factors when choosing the right credit card. You always want to check on the fee’s that are associated with the card. They include monthly, annual, processing, and application fee.

Key terms

• Unsure credit card (Most common card.)
• Secure credit card (Requires deposit)
• Pre-paid credit card (A credit card that needs to be loaded with money to use)