Engaging In an Expansive Comparison between Secured and Unsecured Credit Cards
Credits cards continue to shape how we conduct our lives. In the wake of Sub-Prime recession, credit card norms had become increasingly tough and fetching cards on bad credit was
like getting Manna from heaven. The noose has loosened now and credit cards are again a powerful aspect of how we choose to handle our finances. Speaking at large, there are two distinctions- one category which is financially sound and hence have a brilliant credit history and the other category which is on the receiving end of credit rankings.
Naturally, to make things a little balanced, two separate card entities have also been introduced; Secured and Unsecured credit cards. Before girding up our loins and jumping no-holds-barred into a “which one is better” debate, let us understand what both the cards imply.
Unsecured cards, as the name implies, are not secured by any security deposit. These cards are usually provided only to those who have a red-liveried income sheet and a stable credit ranking. Rankings in the range of 700-750 warrant an unsecured credit card and such people often find credit card firms making a beeline for them.
Secured cards, on the other hand, were introduced to pander better to the large gulf in the financial flux. Those who have bad credit and have been defaulters on mortgage or loans cannot get banking institutions to trust them. Thus, they have to go for a secured credit card which can be fetched only against a security deposit. While they require you to put forth a part of your savings (if you have bad credit, you might not be saving though), they also earn you interest money on your security deposit.
Let us now quickly take up how secured and unsecured credit cards measure against each other.
Fees that you have to fork out
Unsecured cards generally come without an annual fee but their competitors, the secured cards,invariably come with a truckload of fee. These can digress from annual fee to processingfee to application fee to unwarranted late fee. It is generally felt that those who apply for secured cards have a shortage of option and thus they can be asked to put in a little more effort. The idea then is to know more about where to apply and how. In this regard, websites like www.fastcreditcardapprovals.comare providing optimum succor.
Rewards and earnings
Unsecured cards are handsome winners and any contest is ‘over bar the shouting’. They fetch you various rewards like air miles, cash discount on hotel stays and much more. Having
said this, you get to earn through interest on security deposit if you go for a secured card. Again, you have to know in advance which particular card will hold you in better stead. In this light, the role of platform like www.fastcreditcardapprovals.comcan’t be overstressed.
Customer service provided to cardholders
This is self-explanatory if you look from a psychological vantage point. Any customer service team looks to provide extra comfort to the well-heeled customers. It is never said but works as an unwritten law. Secured credit card holders generally have a bad credit and thus they do not find the customer service desk as supplicant as the unsecured cardholders find them.
How capable are you in managing money?
Hindsight is an unsparing beast but till the time one is proven wrong in hindsight one tends to believe that he or she is a smart money manager. Let us say that if you are not good with managing the Greenback and your ego is not too big to accept it then you should not go for unsecured cards. Even if you do go for it, always make sure to purchase moderately, be in control and keep the unused balance as high as possible. For secured cards, the limit up to which you can spend is largely 50-100 percent of the security deposit and hence you cannot run wildly with the spending bit.
Interest rates to consider
This aspect is a corridor of uncertainty. Few secured cards are rendered at a low interest rate because the lender is at no risk at all, what with the security deposits already backing against a payment default. On the contrary, secured cards also may come at a high interest rate because they are provided to people with bad credit report, and hence little option to shop around.
In the final run
Before making a decision, it is always worthwhile to spend some time researching on websites like www.fastcreditcardapprovals.com. They allow you to compare over a very large repertoire and offer you highly exact numbers. Apart from credit cards, such sites also allow a user to avail in-depth analysis of loan and insurance procurement. As an aside they help you in getting financed and provide access to free credit reports. Credit cards are the drugs of our choice. You can still go a long way with them, provided you manage money well, choose carefully and learn to keep the credit purchase to cash purchase ratio in check.