Yes, whilst it’s true that a credit card means having your purchases being made with one swipe, the glossy piece of plastic is so much more than just a card offering immense convenience. A conventional, financial commodity used not just for everyday items but greater resources where investments are much greater. Beyond the bounds of convenience, a credit card also presents cardholders with an avenue to accumulate credit, consequentially leading to earned rewards and cash, proving to be beneficial for the cardholder.

However, let’s not be fooled by the ease of use of a credit card. Essentially, as a credit card only does act as a mere pause between actual payments. In other words, a short-term loan. And just like every other loan, yes, you’ve guessed it: it needs to be paid back.

Transactions made by all such cards however do come in a package: The APR. Formally known as the Annual Percentage Rate, it seems as if a credit card isn’t quite the catch after all. Whilst the APR is dependent on multiple factors, including credit card history and the issuing bank, the card has its own list of benefits and drawbacks.

One of the major concerns clouding a credit card is its safety.  If you’re a cardholder whose concerned or an individual whose about to open a new one, page through to learn more about how you can circumvent such a situation.

A Secured Credit Card

Is there such a thing? Yes. In fact, there’s a list of banks that offer secured credit cards and also one’s that don’t. To start off, you’re looking to issue a credit card from a bank that guarantees you security. Whilst all banks somewhat claim this, not all will be promising. As of 2018, creditcards.com ranked Capital One Secured Master Card as the best option for those looking to build credit. Although the type of card you are willing to issue is highly dependent on your own circumstances and preferences, a security is one factor you do not want to compromise.

A Secured Credit Card: A Class Apart

Establishing the fact that security is a must, why are secured credit cards an entirely different department altogether when security is claimed by all card issuers? A good question to be put up, whose answer may lie in the meaning of the card itself. A secured card, unlike other contenders, calls for a cash collateral that performs as the line of credit for the card. Just like any other card, this card can be used to build credit, earn rewards and even get cash in return. One notable contrast between a secured card and an unsecure one is a security deposit. In other words, your card is backed with cash that you supply beforehand, and can also be a means to compensate for bad credit.

Security Deposit: To Pay or Not to Pay?

Although a secured credit card is just like any other card with the addition of an exceptional factor, any cardholder must realize the potential warnings that come with an unsecure credit card, with the biggest being card debt. Since the security deposit acts as limit for a secured credit card, you may give into your bad attitude and put yourself in hot water by drowning in debt. I guess it’s safe to say that it’s best to know when to draw the line, with this case being one of them.

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