Secured Credit Cards are like having a second chance at building your credit!
A second chance at rebuilding your credit that is! Most of us aren’t taught in school what a credit score is, let alone how to manage and build our credit. It’s no wonder when it comes time to qualify for a mortgage for a home or for financing for a car, many of us are left scratching our heads about to how to qualify and how to get lower interest rates.
One of the ways to get lower interest rates is by having strong credit. What if you messed up your credit? Or worse what if you don’t have any credit score at all? Take a breath, it is possible to improve your credit and secured credit cards are a great way to start.
A secured credit card is when a financial institution like a bank holds some of your funds that they use as collateral against the money you borrow on the secured credit card. This money acts as security for them. It can be confusing and easy to mix up a secured credit card with a pre-paid card, but they are actually quite different.
Check out today’s LimorTV episode for more information on how secured credit cards work and the difference between a pre-paid and secured credit card.
There are many areas in our lives where we don’t get a do-over or a chance to start again, but luckily when it comes to your credit, it can be fixed and having a secured credit card is a tool that can really help.