Secured Credit Cards for Bad Credit - Does it really help?
The other day I was reading Getting a secured credit card couldn’t be easier and it’ll help you get out of debt and back into the good credit history books.
I won’t talk at all about secured credit card and how to get one, that you can read on above link or can read at zillion places.
One thing that comes to my mind is most of the people who talk about building credit history for bad credit people really ain’t the ones with bad credit. To understand the psychology of bad credit holder u have to be a bad credit holder. Most of the time people like us are very lazy and not too disciplined (rather should I say not disciplined at all).
Heck we never pay our bills in time. What can be worse than getting a credit card by paying money in advance and then because of our lifestyle/ habit dont pay the CC bill. Many researches on net scream Secure card will improve ur credit rating. Heck unless you are really motivated, secured card will worsen your already fragile rating. Imagine a bank reading ur credit report that u have 2 secured cards (that implies you cannot get an unsecured at first place) and then you are missing the payment on them.
Second question that I wanna ask the secured card screamers is most of the time when we dont have the money only then we are delayed in making payments and hence our credit rating gets screwed. The suggestion that you are giving as in to cough 1000 bucks and get a secured card, if at the first place I had 1000 bucks why will I be in situation of not paying bills and spoiling the credit rating.
In my opinion secured credit cards are most over-rated single financial instrument when it comes to credit improvement. Indeed it is good for people who want to start their credit history, the people who need ae credit card urgent because of whatever reason (watching movies on the net) or if you just want to impress ur girl friend with 10 different cards in ur wallet, but asking a poor credit score person to get a secured card is like slapping him again and reminding him of his already fragile finances.
Tags: Bad Credit, Bad Credit Credit card, Bad Credit Secured Credit Card, Secured Credit Cards, Secured Credit Cards for Bad Credit