What to Expect with a Secured Credit Card

When you accumulate debt and work with debt consultants in Victoria, you can’t typically apply for a traditional credit card. A 4 Pillars debt consultant may recommend obtaining a secured credit card as a way of rebuilding your credit. When you’re new to using a secured credit card or in the process of applying for one, it’s vital to know what to expect.

You’re Required to Pay a Deposit

Lenders require a security deposit, which doubles as your spending limit, helping you reduce spending to avoid getting into additional debt while working with 4 Pillars in Victoria to become debt-free. You may need to pay the deposit before or after you apply, making it necessary to have the funds available in advance. The deposit is also what the lender uses as collateral.

It Works Similar to a Traditional Credit Card

With a secured credit card, you can make payments and purchases the same way you would with a traditional credit card. These cards require a monthly payment, making it necessary to work with 4 Pillars to stay accountable and avoid falling behind. Outstanding balances also accrue interest. A 4 Pillars debt consultant in Victoria can guide you in the right direction to find a credit card with a lower interest rate.

It Requires Patience

When you’re in debt and working on a payment plan with companies like 4 Pillars, you need to have patience when rebuilding your credit score. You must use secured credit cards responsibly for an average of 12 months before you can begin using an unsecured credit card again.

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