All right so what are secure credit cards so secure credit cars aren't just like a normal credit card normal credit cards are just typically like credit cards but in reality they're unsecured credit cards so first understand on secure credit card is something that people who probably have established credit or some type of credit or you have any requires no money down A. K. A. no collateral so collateral something that somebody's gonna take in exchange for something else so in this case a bank will take your money.
In exchange for a credit limit whatever you give to them that is your credit limit okay so that is what unsecured credit card is unsecured credit card does not require collateral hence just a normal credit card then maybe somebody with the status credit or you know some type of credit so for example a chase sapphire preferred or you know like chase sapphire reserve or chase freedom something like that and I can express everyday card those are your time your unsecured credit cards a secure credit card is for the secure credit card is a collateral okay so typically in only collateral that secure credit cards work with his money that's all they want is the money is all about the money right so what they'll do is they'll say listen Walter if you give me two hundred dollars I will give you a credit card for two hundred dollar credit limit I will put that money to the side for you we won't give you access to it you will make purchases on your credit card every month to pay the balance in full
Keep that two hundred dollars that you given to us in a savings account you still got to pay whatever you spend on every month and hopefully to solve for the budget credit and after maybe about eight six months to a year typically a year of on time payments you great credit history and all this stuff gets reported to credit bureaus as well which is awesome we will possibly lend you unsecured credit card and give you back your two hundred dollars so that is awesome so pretty much they may not trust you hundred percent and that's okay and they would you know you give me two hundred will give you two hundred will put your two hundred and a savings account that you cannot touch after you've done what you're supposed to do we give that money back and your credit score is improved we've done our job we trust you know here's your two hundred dollars and stay with us here is a unsecured credit card for X. amount of dollars typically the amount of money that you gave to them and the collateral unless you actually increase on this typically so that is what a secure credit card is here is how we get it okay go to a bank almost every bank offers a secure credit cards my favorite I would give to you a little bit later but just for example I'm gonna give you my story I went to Wells Fargo about four or five years ago when I start my credit journey the issue with me and I'm sure a lot of you can relate on whether you have bad credit or you had no credit like myself I had zero credit.
Should I just go to your go to subway spends on for five dollars paid off in full as in that's it and I was like wow you made you made it sound so simple and that's pretty much what it is just go somewhere if you have three hundred dollars to make a payment for it by go to Walmart and buy them for a dollar you know go buy something on for a dollar I don't know five dollars go to chick fillet what do you have a fast food store and just do that go buy some gas and just to let one purchase a month.To show that you're actually using a cart full I think it's a big metal people say keep it there let them charge interest I don't believe that paid in full we are in the business of making you in saving you money and help you out not given that make money more money in their pockets case okay don't fool after a year your credit score will reflect so after you got one from zero to about middle six is which is not bad I was still only again I only had a year worth of credit history one credit card so middle six is for that was pretty good and when I was ready I was Fargo pretty much hit me up and said listen here's your money back and here's a credit line and I know my credit line again make sure you keep this car open it's two thousand dollars now and again and I don't use it I kind of just have a recurring payment never want to close your credit cards but that's pretty much what it was and then my first unsecured credit card I got they gave me ten thousand dollars this is from a different bank but the first unsecured credit card I had was ten thousand dollars which I still obviously have and I felt like I was on top of the world so that's how you really finesse the system and that's how you work the games I've been a finesse that's how you work it you make a small purchase the panel for you there for about a year two years what however long it takes and they will offer it back to you they'll give you your money back now they the best secured credit card that I suggest is the discover it secured cash back card.Here's why some secure credit cards offer you give you annual fees discover no annual fee that's what they pride yourself on which is pretty good.
