One of the biggest myths in the world of personal finance is the idea that secured cards are only for a certain group of people. Generally speaking, this means that people think of secured cards only for people that don’t have a lot of money. However, the mistake made is simple — there is no direct connection between credit and income. You can be wealthy with more money than you can spend and have terrible credit. If you don’t pay your bills on time, your credit score is affected. There are plenty of rich people that end up filing bankruptcy because they just can’t pay their bills.
If you are in need of time to build your credit back up, you will need to make sure that you focus on getting a secured card. They really are open to just about anyone. As long as you have a working income, there’s quite a lot that you can actually do. There’s a lot of time in the day to look up financial information, but if you’re not sure about the ins and outs of credit cards, we’d be more than happy to help you out.
First and foremost, a secured credit isn’t all that much different from a regular card. It’s just a card that will allow you to build your credit back you can pay off a little bit a time, just like with a regular card. The only difference here is that you have a credit limit that’s directly linked to a security deposit. In order to even have the card, you have to put down the deposit. If you skip over the deposit, then you really can’t have the card.
This is a pretty simple equation — you just need to make sure that you load as much money as possible as the security deposit. If you want a sky high limit of like $5,000 or better, you need to have that amount of money first. That’s the best way to get things done, if you ask us.
So you have to get it out of your head that only low income people have secured credit cards. This is a myth that you can see on some finance message boards, but it just isn’t true. In fact, there are many high income people that now have to rebuild their credit. Many banks have now come out about high limit secured credit cards and they invite people to apply for them accordingly. You’re going to need to make sure that you focus on taking it slowly with these cards either way.
Remember that you will still have plenty on your plate, and you have to make sure that you plan accordingly. Your credit card isn’t going to be the only expense you have to take care of, after all. So now is definitely the time to take action and begin hunting for the secured credit card or two that’s going to be right for you. Good luck!