What Are the Disadvantages of Secured Credit Cards?
credit cards image by Aleksandr Lobanov from Fotolia.com jQuery(document).ready(function(){ jQuery(‘#jsArticleStep1 span.image a:first’).attr(‘href’,’http://i.ehow.com/images/a06/0d/l5/disadvantages-secured-credit-cards_-1.1-800X800.jpg’); }); Secured credit cards come with certain disadvantages. A secured credit card is a financial instrument that is issued to a customer who agrees to put a security deposit, such as $500 or $1,000, into an account that serves as collateral for the card’s use. The cardholder may be able to charge up to the full amount in the account or only a portion, depending on the institution that issues the card. Secured credit cards are typically sought by individuals who cannot receive an unsecured credit card due to a poor credit history or by those looking to establish credit for the first time. Spending Limit With a secured credit card your spending power is limited, because you must have the money in advance before you can make a purchase. As a result, you w
