Mortgage Services, Inc. 

Providing Home Loan Solutions Since 1986 

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Secured Credit Cards



A Safe Method of Building Credit.


Many prospective homeowners looking to obtain mortgage financing have never had credit or need to repair a poor credit history may not qualify for a regular unsecured credit card. For them, a secured credit card may be the only way to establish, or re-establish, credit in order to qualify for a new mortgage loan.

If you're thinking about purchasing a home and have no credit or poor credit, here are the answers to frequently asked questions about secured credit cards.


What is a secured credit card?
A secured card requires a cash collateral deposit that becomes the credit line for that account. For example, if you put $500 in the account; you can charge up to $500. You may be able to add to the deposit to add more credit, or sometimes a bank will reward you for good payment and add to your credit line without requesting additional deposits.


Where can I get a secured credit card?
Check Mortgage Services secured credit card issuer. If you're a credit union member, ask about a secured card there. About half of the nation's credit unions offer secured cards to their members and may offer lower interest rates and waive annual fees.


What kind of charges will there be?
Many cards will charge an application fee, and every secured card charges an annual fee that varies.  Secured cards are a good option for those with less than stellar credit, because, even with higher-than-normal fees, the total cost for a secured card can be less than the astronomical interest charged on unsecured cards for those with very poor credit provided they can even obtain a card. The terms and conditions of a secured credit cards are furnished to the consumer at the time of the account being opened, just as with other cards, and should be reviewed carefully by the consumer to be sure he/she knows what they are getting themselves into.


How much money do I have to deposit?
Again, the amount will vary by the card. Most are $300 to $500. Your credit limit will either be the amount of your deposit or some percentage above that amount.


Do all banks offer secured credit cards?
No. some lenders will shy away from secured cards and toward unsecured cards with lower limits and higher interest rates and fees. Still, secured cards are a good choice -- and sometimes the only option -- for people who are just starting out or rebuilding after a major life event, such as a divorce, job loss or serious illness. 


Why we need credit cards?                                                                                           Not only will you need a solid credit history to obtain a mortgage, but the truth of the matter is that credit cards have become a necessary tool to exist on this planet. You need one to make a hotel or plane reservation, or to rent a car, even if you plan to pay cash. Many stores require a credit card to accept your check. Responsible use of a credit card builds a good credit rating, too, marking the owner as mortgage-worthy.


Click Here to Get a Secured Credit Card


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