It can be very hard for a person that has hurt their credit score to get back on the right track again. Credit cards are one of the leading causes of debt in the United States today, and providers realize that they need to offer solutions to people that find themselves in this type of situation. Secured credit cards are a safe and effective way for people to improve their credit score and condition themselves to use credit cards in a more responsible way.
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Having a good credit score is very important, especially as someone gets older and wants to make bigger purchases like a house or new car. Financial websites like The Wall Street Journal have numerous articles about what goes into a person’s credit score and how they can raise that score.
Provident Credit Union Visa Shared Secured Credit Card Rates and Fees
This credit card has a special introductory annual percentage rate for purchases of 10.65% for six months. After this period has expired, the regular interest rate for purchases will be 16.65%. The interest rate for balance transfers is a constant low 9.9%, while the cash advance rate stays steady at the higher rate of 16.65%.
The regular interest rate is a bit higher than an unsecured credit card, but still low compared to most other secured cards.
There is no annual fee or transaction fee for balance transfers with this card. There is a 2% fee for foreign transactions and cash advances, and the cash advance fee has a minimum charge of $4. There is also a $15 penalty fee for having a payment returned or making a late payment.
The Way that the Provident Credit Union Secured Credit Card Works
The main thing that separates a secured card from a typical credit card is that the cardholder has to put down a security deposit before they get their card. This deposit protects both the cardholder and the provider because it prevents the cardholder from being able to default on the card. This protects the provider since they will not lose money and the cardholder’s credit score is protected from the negative effects of defaulting.
As the cardholder uses the card responsibly, the credit card company reports the activity to the credit bureaus. In this way, as long as the cardholder is not late with payments, their credit score should improve.
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