Among many of the credit cards available for secured credit, there is both MasterCard and Visa secured credit card. These credit cards are available for bad credit customers, who are seeking to repair their credit history. If you are trying to rebuild your credit score a MasterCard or Visa secured credit card are an excellent way to begin to do that.
A MasterCard or Visa secured credit card operates very much like a regular unsecured credit card. The primary difference is that with a secured card, you must make a deposit with the issuing bank in an amount sufficient to cover the credit line the bank extends to you. When you receive your MasterCard or Visa secured credit card, you can use it like any other card. You will pay an annual fee, an interest rate, and possibly other fees unique to a secured card, such as an application fee.
Just like with a regular credit card, you will receive a monthly bill, and you must pay your minimum monthly payment, or you can pay your balance in full. However, be aware that with a MasterCard or Visa secured credit card, you will not be charging against the deposit that you have with the issuing bank, as with a debit card. Your deposit is kept by the bank to secure your card, not as a balance to withdraw against. You will still have to make a monthly payment to be in good standing, just like a traditional revolving credit card. It is not the same as a debit card that you might use with your checking or savings account.
If you make your payments on time, and do not pay late, you will start to see an improved impact on your credit. Using a MasterCard or Visa secured credit card to improve your credit score is a great idea, because a MasterCard or Visa secured credit card can cost less in fees than a bad credit unsecured card. In addition, nearly all applicants are approved for secured credit, since the bank is certain that it will get repaid by keeping your collateral, or deposit balance. The bank has much less risk that it may not be repaid.
A MasterCard or Visa secured credit card is very much like any other secured loan. Your deposit is the security for the banks loan to you of a credit line, and you use your credit card to access that secured credit line. There are many lenders to offer either MasterCard or Visa a secured credit card accounts to bad credit clients. Be sure to shop around before applying to be certain you're getting the best fees. Using an MasterCard or Visa secured credit card is a great way to have a credit card for daily needs, and repair your credit in the process.