College is all about getting your feet wet and experimenting with different career choices prior to the start of “real life.” We look for those things that will make us happy, try on different hats, and begin to get a sense of what our place in the world might be after graduation. One of the things that we may begin exploring is our financial selves. Up until this point most of us have largely been supported by our parents, and any credit that we may have would be very minimal.

During this college experience, however, it may be time to begin building our credit so that we are able to navigate freely in the adult world which we are entering. After all, there are rental applications to fill out, cars loans to procure, and even mortgages to seek at some point. And one of the ways that college students can begin to build good credit – without getting out of hand – is through the use of secured credit cards.

Secured credit cards are meant to protect the lender and the consumer equally. They are credit cards that require collateral funds to be deposited into a secured savings account held by the lender; collateral funds that match or exceed the credit limit extended to the consumer. Secured credit cards benefit the lender because it ensures that they will not lose their money even if the consumer defaults on the loan; the lender has the right to recoup the money from the savings account. Conversely, secured credit cards also protect the interest of the consumer in that they do not allow them to rack up too much credit card debt right out of the gate.

Secured credit cards allow consumers to build their credit report slowly and wisely, learn how to budget their money appropriately, and learn their first lesson on the responsible use of credit cards.

Popularity: 25% [?]

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It’s been said that everyone deserves a second chance, and there’s no exception when it comes to finances. It takes a lifetime to build good credit and a few bad months to damage it considerably. And for those of us who are living the life of bad credit, we know how truly difficult it can be; how much impact it can have on nearly every financial decision that we make. Cash is largely a thing of the past; today, most things are purchased on credit - the smaller things in addition to the larger ticket items that were always historically purchased on credit such as homes and cars. You need good credit to be green lit for a mortgage, a car loan, even a job in certain cases; so when credit is in bad shape the options can seem significantly limited.

Luckily there are options for second chances; one more effective means for rebuilding credit and getting back on track financially is credit cards for bad credit. As we run up the totals charged on our credit cards, we invariably find the minimum payments climbing in response. And as we struggle to make those minimum payments – paying less, paying late, or paying not at all – our credit begins to experience damage that chips away at our financial credibility.

Credit cards for bad credit offer a second chance in that they allow consumers to rebuild their credit report slowly and deliberately. Credit cards for bad credit generally offer consumers that are struggling, the chance to get a credit card with the following options:

- A lower than average credit line; creditors will periodically examine the card holder’s progress and may slowly raise the credit limit if they see continued on time payments and payments above the minimum.

- A card with a higher than average interest rate; again, creditors will continue to watch the card holder’s progress and may consider lowering the interest rate if there is clear evidence that the card holder is making strides.

- Secured credit cards; these special credit cards for bad credit ask card holders to offer up collateral to cover the credit limit that they want. In general card holders will deposit an amount equal to or more than the amount of the credit limit of the card. The amount is deposited into a secure savings account held by the lender – to be used in case the card holder defaults on their loan.

Popularity: 45% [?]

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We live in a society where our credit report says as much about us as anything else. We look to lenders to help us expand our credit lines so that we can continue to live comfortably even in the face of rising costs of living and declining salaries. Of course the downside to all this borrowing is that if consumers are not able to keep up with payments they are vulnerable to their credit report being negatively impacted. When this happens – as it often does in this day and age – consumers are left largely to their own devices as they struggle to keep the cycle of borrowing and on time payments moving freely.

But for those with bad credit – those who have been negatively impacted by their less than timely payments and staggering debt to income ratio – the options seem to dwindle rather quickly. Suddenly there seems to be very few avenues to finding their way back to financial stability. Those whose credit scores have dropped considerably will find that they are no longer able to qualify for loans and do not have the ability to consolidate their bills into an easier payment. And without the availability of credit cards at their disposal, consumers may feel even more cornered.

Luckily there are options for those with bad credit; options to help consumers get back in good graces and rebuild their credit step by step. One such way is through the use of secured credit cards.

Secured credit cards allow consumers with bad credit to still have a credit card. Depending on the amount of credit that they desire, the consumer must deposit a matching amount into a secured savings account held by the lender. For instance, if the consumer wishes to have a credit card with a $1,000 limit, they must first deposit $1,000 into the lender held savings account.

The benefits of secured credit cards are clear for both lenders and borrowers. Secured credit cards protect the interests of the lenders; if the borrower at any point defaults on their loan, the lender has the ability to withdraw the amount owed from the savings account. For consumer with bad credit, secured credit cards offer a second chance; with continued on time payments and by demonstrating responsibility and financial stability, consumers can rebuild their credit through secured credit cards. Down the road, as their credit score increases, consumers can then move from secured credit cards to more traditional cards, working their way back to independence.

Popularity: 24% [?]

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In this day and age it seems as if most of what is known about us can be found on a computer somewhere; and the fact is that it’s true. Anytime anyone wants pertinent information regarding our background, employment record, and credit history all the information that they seek is never more than a few clicks away.

When it comes to credit especially there exists a significant amount of information regarding our history when it comes to paying bills, the loans that have been extended to us, and even those creditors that have checked into our credit previously. While paying a bill late may have been a phase that lasted only a few short months – due in part to a loss of wages or other financial stress – the repercussions of such late payments can very well last for years on our credit report.

Popularity: 51% [?]

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