If you have a not so good credit, things can be really difficult.  Getting a credit card can seem like an impossible task.  Luckily, if there is a will there is a way.  Secured credit cards are great options for those with less than perfect credit.  But, before you go out and get one, there are some things you need to know.  Today, we are going to learn three important things that you should be considering before signing up for one of these cards.

What Exactly Is a Secured Credit Card?

This is a great question!  Basically, a secured credit card is an account that you can put money into allowing you to make purchases online and in the store. The card company will match the amount of your deposit and charge you interest on that money. These credit cards work just like a normal card but you are using your own money along with a line of credit.  Over time, if you make your payments on time and are using the card responsibly, most credit card companies will extend your line of credit.  While you will still need to have your own money in your account, they will give you a larger credit line.  

Should I Have to Pay Fees?

Some unsecured credit card companies do charge fees for using their services.  But since you are using your own money as a balance, you should not have to pay any fees for a secured credit card.  So, before you sign up for your new card, make sure that you check the fine print.  If you find that there are fees associated with the card, walk away from the offer and find one that doesn’t charge you.  There are many great secured credit cards out there that will help you build your credit history without charging you for it.  So, make sure to do your homework and go with a card that doesn’t charge a fee.

Do They Offer Rewards?

Getting rewards on the money you are spending is one of the reasons people like using credit cards.  Rewards points help you buy things and some cards even give you air miles that you can use to take a vacation.  But what about secured credit cards?  Do they offer the same programs?  The answer is yes some do!  If you are a fan of rewards points, it’s a good idea to shop around and find a secured credit card that offers spending points.  This is a great way to get free things and who doesn’t love getting something for nothing?  

Secured credit cards are a great way to build your credit.  There are many companies and banks that offer them and can really help you boost your score.  Using them responsibly can help you build a solid financial foundation that you can use to make larger purchases with in the future.  Also, if you are frugal and love to collect rewards points, you can find a secured credit card that offers them.