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Secured Visa

Written by Kathleen Gagne
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Getting a secured card can be the first step to getting your credit back on track. It can also be a good way to give a first credit card to a student away at college. First of all, however, you must understand the difference between a secured credit card, a pre-paid credit card, and a regular credit card. Understanding about these types of cards is a good way to understand the credit card process.

If you have good credit, you can get a regular credit card that requires no outlay on your part. You get the regular card on the basis of your income, how many bills you have, and how you pay them. The fewer your bills and the faster you pay them, the higher your credit rating and credit card limit will be. Pre-paid credit cards are just like pre-paid cell phones. You give the seller an amount that is greater than your card limit will be, and then you get a card that you can use like any other credit card. The amount you pay over what the card will be worth represents the seller's fee for the card.

Secured Visa Credit Cards

It doesn't take good credit to get a secured card. You just have to find a bank or credit card company that offers a secured card plan. Basically, you simply deposit a minimum amount of money in an interest-bearing account, and then you will be issued a card up to the amount you have deposited. You will pay interest and fees on a secured card, so it's important to compare several before you choose one.

It's a good idea to make purchases with the card that you can afford to pay for as soon as the bill comes. In any case, you should always make your payments on the card on time. To help rebuild your credit, you will also want to pay more than the minimum amount due on your bill each month. Remember that keeping your outstanding balance low can be a help as well. Within a short time, if you manage your other bills well, your secured Visa and your on-time payments will help your credit rating to move in the right direction.


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