If you’re currently in the hunt to repair your bad credit or re-establish credit, you may not be familiar with a secured credit card and the terms that are associated with it  Below are a few terms you’ll come across and I’ll explain to you what each term means.

Credit Checks – Some credit cards on the market will require a credit check.  This is when they pull a credit report and check out your status.  The nice thing about secured credit cards is that most of the card carriers don’t require a credit check, instead they require you put down money as a deposit for a safety net.

Credit Bureau Reporting – The main reason you’ll want a secured credit card is because you’ll want to re-establish your credit.  The only way you’ll be able to do this is if the card reports to all of the bureaus.  If the card doesn’t do this, you’re not going to build credit.  Make sure that when you apply, the card is reporting to the major bureaus.

APR – The APR also known as your annual percentage rate will be the rate applied to your unpaid balance each month.  Remember, if you pay your bill off in full each month, you’ll be able to avoid this fee.  This is why I strongly recommend you pay your bills off in full each month.

Credit Limit – A credit limit is going to be the limit you can spend on the card.  So, if you have a credit limit of $2,000, you can only make $2,000 before the card “shuts off”.  If you go over your limit, you will be charged a over limit fee.  WIth a secured credit card, your deposit will set your credit limit.  The reason you have to set up a deposit with the credit card companies is because the companies need to have a back up source of cash just in case you don’t pay your bill.  Since you won’t have the greatest credit, you’ll need to redeem yourself by showing you can pay your bills off.

Annual Fee – The bad thing about secured credit cards is that most of them have an annual fee.  Once you rebuild your credit, you can slowly graduate back to a regular credit card that doesn’t have an annual fee.  An annual fee is he fee you’re going to pay yearly regardless of how much you use the card.  This fee will be applied to your monthly statement at the end of each year.

To apply for a secured credit card, visit our website at http://www.findsecuredcards.com