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_________ HOW TO OBTAIN
SECURED CREDIT CARDS
Millions of American consumers every year find that they have trouble qualifying for an unsecured line of credit. Due to a lack of a credit history, or credit trouble in the past, these people can now be helped by banks and savings institutions that offer secured VISA and MASTERCARDs with below-average interest rates on a national basis.
Consumers with past credit problems are the ideal candidates for a secured card. If a credit history shows liens, charge-offs, repossessions, or bankruptcy, it will be nearly impossible to qualify for any kind of credit, including automobile and home loans. However, those whose problems have come under control or are past them can now qualify for secured credit cards.
Why Do I need a secured card? Quite simply if you have been turned down for conventional" cards secure cards help to begin rebuilding your credit. Most of these cards report to all three credit bureaus on a monthly basis. For mst people after just a few months of this "reporting" you can see an improvement on their credit score. This in turn may qualify you for a better rate mortgage, or more unsecured credit cards.
Secured credit cards can be offered to those with poor credit history based on the fact that the lending institutions charge security deposits, which vary from bank to bank. Most secured credit cards charge higher interest rates and higher annual fees than on unsecured cards and, more often than not, special one-time application processing fees are charged.
TERMINOLOGY TO BETTER UNDERSTAND WHICH CARD IS RIGHT FOR YOU
MINIMUM SAVINGS-This is the minimum amount of money required to establish a secured credit card account. This deposit is put in either a savings account earning monthly interest, or a 12-month certificate of deposit (CD) earning market rates. If the money is withdrawn, the credit card is no longer valid.
CREDIT LINE-The credit line is the amount you can charge on your secured credit card. It is shown as a percentage, which indicates the percentage of your deposit. For example, if you deposit $500.00 with a 100% credit line, you can charge up to $500.00 to your secured credit card.
INTEREST RATE-Every month, the appropriate interest rate is added to your balance, which is called a “finance charge.” Some banks offer a variable rate and others a fixed rate. A variable rate varies according to the prime rate, which is determined by the New York Stock Exchange, and is typically updated on a weekly basis. A fixed rate will not change for the duration of your credit card.
ANNUAL FEE-Most banks require an annual fee for their services.
SAVINGS INTEREST-This is a percentage that your security deposit earns on a monthly basis.
SECURED CREDIT CARDS V=Variable F=Fixed
Amalgamated Bank of Chicago Bank of
America
(800) 365-6464 (800) 441-8026
Credit Line: 100% Credit Line: 100%
Annual Fee: $50 Annual Fee: None
Interest Rate: 12.50% V Interest Rate: 15.49% F
Savings Interest: 4% Savings Interest: Varies
Minimum Deposit: $500.00 Minimum Deposit: $300.00
First Premier Bank HSBC
(800) 987-5521 (800) 975-4722
Credit Line: 100% Credit Line: 100%
Annual Fee: $45 Annual Fee: $35.00
Interest Rate: 16.90% V Interest Rate: 19.80% F
Savings Interest: 2.50% Savings Interest: 2.00%
Minimum Deposit: $200.00 Minimum Deposit: $500.00
Orchard Bank
www.orchardbank.com
Credit Line: 100%
Annual Fee: $29-$79
Interest Rate: 16.15% F
Savings Interest: None
Minimum Deposit: $1,000.00
As the secured credit card market is an ever evolving market, please make sure to verify their rates and terms with them.
Why do I offer this information free of charge? I am offering this information free of charge because I want to be your mortgage advisor. I offer more than simply a loan: I'll personally advise you on how to use and apply the principles I teach you. Worried that you can't remember all of what is contained here? Call me. I want to earn your business.
Questions, Comments? Please call me at 1-800-548-2526 or:
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This report was provided by:
Jacques E. Laubert, Member
Mortgage & Credit Expert
Razor Mortgage LLC
"Shaving Your Payments" ®
700 Harry L. Drive Suite 220
Johnson City, NY 13790
Tel: (607) 797-1200
Toll Free: (800) 548-2526
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Razor Mortgage LLC•700 Harry L. Drive Suite 220• Johnson City, NY 13790 •Tel: 607-797-1200
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Registered Mortgage Broker, New York State Banking Department, Loans arranged with 3rd party providers.
portions ©2006, 2007 Razor Mortgage LLC
DISCLAIMER - NOTHING IN THIS REPORT IS TO BE SUBSTITUTED OR TO BE CONSTRUED AS FINANCIAL, LEGAL, OR ACCOUNTING ADVICE, OR ADVICE OF ANY KIND. THE INFORMATION CONTAINED HEREIN IS SOLELY INTENDED TO BE INFORMATIONAL, AND NOT TO BE CONSTRUED AS ADVICE OF ANY KIND. THE READER ASSUMES ALL RESPONSIBILITY FOR ANY FINANCIAL, LEGAL OR ACCOUNTING ACTIONS THEY TAKE, AND UNDERSTAND THAT THE READER MUST CONSULT WITH THE APPROPRIATE PROFESSIONALS BEFORE TAKING ANY ACTIONS REGARDING THEIR FINANCIAL, LEGAL OR ACCOUNTING SITUATION. THE READER HOLDS THE AUTHOR, PUBLISHER, OR ANY DISTRIBUTORS OF THIS REPORT HARMLESS FROM ANY CONSEQUENCES THAT RESULT FROM ANY FINANCIAL, LEGAL OR ACCOUNTING ACTIONS THE READER TAKES UNDER ANY AND ALL CIRCUMSTANCES.
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