Secured Credit Cards
Today's world is much, much different from what it was in the 1950s. People didn't have credit cards back then, so there wasn't a need for secured credit cards. But now, there are credit offers everywhere you turn, making it easy to fall into debt.
Credit Past
In the past, people bartered more for goods and services. Sure, stores had credit accounts, but not actual credit cards. Those weren't created until the 1950s or 1960s. When credit cards were invented, it just took debt off paper and computerized it. But it was much easier to get into debt because there were more places to shop that accepted credit cards.
Today, there are literally millions of people who owe billions in credit card debt. Some have paid it all off, but it left them with such bad credit that they could no longer get a credit card. For those people, secured credit cards were created. Let's say you're in that exact situation--you can't get a regular credit card to save your life. But you need a credit card to reserve a hotel room, rental car and airfare. What are you to do?? Get a secured card!
With secured credit cards, you send in a certain amount of money (an amount you choose) to a credit card company and that's your credit limit. Then whenever you buy something, instead of spending money you don't yet have, you're spending the money you sent in to the credit card company. With secured credit cards, you're spending your own money, not someone else's. That's why there's no credit check, no late fees and no over-the-limit fees. You have to really keep track of your purchases though, because when the money runs out, your card is declined. Most people handle this by reloading them. That's where a small fee is involved--loading and reloading the card. But it's minimal compared to the freedom you'll get back when you once again have a credit card.
And you don't have to worry about acceptance (unless it's in a certain social group, but that usually doesn't involve credit cards) because secured credit cards are accepted anywhere regular cards are accepted. Perfect!
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