Friday, 5 June 2020

Secured Credit Card

Secured Credit Card
04 Aug
5:32

Researching secured credit card? Duane here with hHow To Build Credit TV and in this video I'm gonna expose 5 things you need to know when considering a secured credit card but before we get started I have a quick message once again my name is Duane with how to build credit TV this channel offers 100% free information about how to build credit, how to get cash back actual cash money from using credit cards as well as credit card reviews So this sounds like something in which you're interested be sure to subscribe and click the notification bell so you don't miss a thing

Alright let's get started Alright so as you can see right now I'm holding three credit cards Actually these 3 cards are secured credit cards two of which I use currently I do not use the capital one at the moment But by looking at it you would have no idea that this is a secured credit card so with that being said everything that I talk about in this video is actually from my own experiences in regards to secured credit cards The first thing you need to know when considering a secured credit card is what is a secured credit card and does it help your credit score? A secured credit card is when you actually have to put collateral up front and give to the bank in order to get your credit card

In most cases it works this way whatever you deposit will be your credit limit so most cards start around $200 and goes up to $10,000 But in most cases it's from $200 to $2,500 So that means if you wanted a $1,000 credit limit you would give the bank one $1,000 and your credit limit will be $1,000 Now they hold onto that money for a period of time depending on who you get the credit card with it's anywhere from 8 months to 18 months with Discover Card if you get their secured card it's actually 8 months and after 8 months they review your account and if you're counseling Good Standing then you graduate to the unsecured card Speaking of graduation to the unsecured card, not all secured card has that type of deal

For example Wells Fargo you can have a Wells Fargo card for a year and still not be graduated to an unsecured credit card As a matter of fact when you have the Wells Fargo secured card when it's time to graduate to the next card you actually have to close your secure card account and open another account And that's not good actually because you're going to be losing all that credit history that you already established with Wells Fargo for that entire year That's why it's important to choose your secured credit card wisely now as far as does a secured credit card help you build credit Absolutely a secured credit card reports to the three major credit bureaus just like any other credit card and if you continue to pay your bills on time and continue to you know follow what you need to do as far as being in control of your credit card you'll be fine and you'll be building credit so it absolutely will help build your credit score

The second thing you need to know when considering a secured credit card is is there an annual fee Now some secured credit cards you can absolutely get for free for example the Discover secured card is free there is no annual fee I actually like that one a lot because it actually offers the ability to earn rewards and not all secured cards you can earn cashback So that one is my favorite personally it's been really good to me Some other secured credit cards such as Wells Fargo there is an annual fee I think Wells Fargo's annual fee is $25 buck The Citibank secured credit card that's absolutely free no annual fees at all but it does not offer any kind of rewards or cash back

Which is not a deal-breaker I mean the purpose of getting the secured card is just to kind of build up your credit but the way I use them I actually use the secured cards as if they're real credit cards For example my Discover card my credit limit on that card is $2,500 So initially when I started off I deposited I think it was $1,200 and after a couple of billing cycles you can actually increase your credit limit by increments of $100 and so what I did was I started at $1,200 and then I just went ahead and maxed it out at $2,500 with the Discover card because that's the max limit that I can deposit in order to get my limit to $2,500 So I actually just used my Discover Card like a regular card and that's actually my favorite secured card because it offers major benefits in regards to cash back The third thing you need to consider in regards to a secured credit card is does it have kind of graduation or promotion to the unsecured credit card

So I alluded to this earlier the Discover card absolutely has a graduation, the Citibank card does the Citibank card actually I'm not sure what the all the details are about that one but I know that they could actually hold your money for up to 18 months as collateral So the reason why they want to hold your money is number one the bank doesn't trust you and so if you default on paying your credit card bills they could just use your collateral to take care of your bill So it's actually kind of weird that you would do that because you're paying them money up front to get the credit card and so you would think that you'd be responsible but there are some people out there that just don't get it and so that's why they hold on to your money So it's important for you to do all your research upfront before you decide to get involved with a particular secured credit card Make sure you do all the reading that is out there on that particular card call them if you need to and ask questions if you know you're not sure

As a matter of fact if you have questions you can leave them in a comment below and I'll get back to you as soon as I can because I'm pretty well-versed as far as secured credit cards are concerned They've helped me a lot in my journey to rebuild my credit score The fourth thing to consider in regards to a secured credit card is customer service How is their customer service and what's their reputation? For example, we all know names like Capital One, we know names like Discover Card those are easy we know Bank of America we know Wells Fargo All these banks offer secured credit card and to some extent if you watch television or if you've been alive for a while we're sort of familiar with these brands and we kind of know what they're about so customer service is very important you definitely don't want to get involved with a bank that you don't know or that may not have commercials on TV

That's probably not the best way to judge but at the same time if the bank that you're getting involved with for a secured credit card has no commercials on TV it's some Bank you've never heard of chances are the customer service may not be as good as you want it to be So customer service is very in regards to a secured credit card because you want to pick up the phone and make sure you can get answers regarding any questions that you may have about your credit card account And the 5th and last thing to consider in regard to a secured credit card is Does it offer any kind of reward and when I say reward I mean is there a cash back is there something that you can redeem for using that credit card Now that's not necessarily a deal-breaker but for me personally the nerd in me wants to make sure that I get a card that kind of you know benefits me

Not just that the fact that it's a secured card but there's also some benefits to it So I know personally because I feel like this whole video is a plug for Discover card but the Discover card has been really good to me I mean their cash back is pretty awesome for the secure card it's 2% on gas and dining and 1% on everything else But my own personal story in regard to the Discover card I got that card and I think October September of 2017 and I saw their match their cashback match program the commercials on TV and I thought that I had that exact card you know I was like okay cool I'm gonna get 5% back on this category and at the time I was thinking about Amazon and Target Because the last quarter of 2017 was 5% back on Amazon purchases and target purchases

So man I racked up a lot of purchases with Amazon and Target thinking that I'm gonna get 5% back and so sure enough I contacted customer service and when I contacted them they said actually sir the card that you have is 2% on gas and dining and 1% on everything else Man I was upset I was like well I really thought I had the card that I saw on the TV because I was doing all these purchases with Amazon and Target thinking that I was going to get 5% cash back And this is where customer service comes in would you believe it that they actually honored all my purchases with Target and Amazon They act actually switched my card from what it was to the 5 % cash back which I didn't even know that there was a difference But they it's the card and they actually credited my account I think it was like $60 worth of cash back for that particular period which was the last quarter in 2017

So customer service is very important and Discover Card is really good in that regard So just a quick recap when considering a secured credit card a couple of things you need to think about is, do they have an annual fee Does that particular card have an annual fee The next thing that you need to think about is does that card have a graduation or promotion time period In other words when you can step up to the unsecured credit card and then another thing to think about is the customer service

How is the customer service? So these are things that you should think about in regards to a secured credit card Thank you for watching this video please comment, subscribe and like this video and as always Knowledge is Power, so do your research until next time take care and be blessed peace!

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