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Secured Mastercard

Written by Kathleen Gagne
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If you're looking for a secured credit card, shopping online for a Mastercard can be a great choice. That's because online shopping offers you the opportunity to compare the fees and rates of several secured card plans before you make your selection. Once you find the best secured card plan, the rest is easy.

Basically, your part in the process is to deposit money into an interest-bearing account. Many companies will allow you to get a credit card for as little as a deposit of $100. You can, however, put as much in the account as you like. The company will issue you a secured Mastercard for an amount up to your deposit amount. You can then begin to use your new card just like any other card.

Using a Secured Mastercard Wisely

Once you have your new credit card, you should begin to make purchases. It's a good idea to buy items that you can afford to pay off as soon as you get your monthly bills. In no case should you ever pay your credit card bill late. If you're using your secured card to re-establish your credit, you should make it a point of paying more than the minimum amount due every month, especially if you can't pay the entire balance.

In general, secured cards cost more than regular cards, but shopping around for the best rates can help you to save money. Secured cards are treated exactly like regular cards by the sellers, and your prompt payments will be reported to the credit bureaus. The only real difference is that the seller can use the money in your deposit account to cover your credit card charges if you don't make the payments. Remember that re-establishing your good credit is not just a matter of using one card appropriately. You will have to work hard to manage all of your bills and to pay them on time. Getting a secured card can be the first step towards having good credit when you need it.

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