To apply for a secured credit card is the best option if your can't apply for an unsecured credit card for making loans or reestablishing your credit rating. The lower and upper credit limit range between $300 and $5000. Some card companies indicate their basis for the credit limit on the terms and conditions. Other card companies offer a credit limit of 90% of the security deposit. If you have a $1000 worth of security deposit, the offered credit limit of the card company is $900. Check our secured credit card reviews here https://www.newhorizon.org/Info/securedcc.htm And our unsecured credit cards review here https://www.newhorizon.org/Info/unsecured.htm

1. The Basics of
Secured Credit Cards

2. To apply for a secured credit card is the best
option if your can't apply for an unsecured
credit card for making loans or reestablishing
your credit rating. The lower and upper credit
limit range between $300 and $5000. Some
card companies indicate their basis for the
credit limit on the terms and conditions.
Other card companies offer a credit limit of
90% of the security deposit. If you have a
$1000 worth of security deposit, the offered
credit limit of the card company is $900.

3. A secured credit card differs from an unsecured credit card because the primary
requires the use of a security deposit. The card can be used with a limit that is equal
to the deposited amount. Then, that is the time that you can use the card just like an
unsecured credit card. So, it's just the simply the security deposit that distinguishes
them both.
A secured credit card differs from a debit card because the latter do not report to the
main credit bureaus. That's because there is no credit involved when you use a debit
card. It dues not lend you any amount of money. It just allows you to use the funds
from your checking or savings account. If you use a debit card to buy something, the
charge is withdrawn from your bank account. But, if you use a secured credit card to
buy something, the security deposit isn't deducted, instead, you have to find other
means to pay off the balance on the card.

4. You need to be aware of the possible charges you may incurred like application,
annual and expedite. Usually, the application fee ranges from $50 to $100. However,
there are some card companies which do not offer any application fee. Every secured
credit card has an annual fee that ranges from $30 to $100. Others offer expedite fee
if you prefer to get the card faster.
If your reason why you applied for a secured credit card is to reestablish your credit
rating, consider choosing a company that reports your activities to the main credit
bureaus. You have to check if your chosen secured card company reports every
month to Equifax, Experian and TransUnion. If the company does not report your
payments, that would not help in fixing your credit rating.

5. You have to know how the credit card company deduct the charges. If they deduct
from your deposit, you are going to have a lower credit limit. However, if they deduct
to your card, they can assess interest before the next payment is needed.
You have to confirm if your secured deposit earns nominal interest. Some provide a
nominal interest rate on your secured deposit, while other do not offer any nominal
interest at all. It is better to gain a little interest than none at all.
You need to confirm the grace period. If you pay off the balance in full every month,
you need to check if there's grace period. Some do not give any grace period, so, the
interest accrues instantly.
To find more information about secured credit cards, you can visit the Federal
Reserve Board's Page. It contains useful information about all kinds of cards,
including secured credit cards.