Today more and more people are troubled with poor credit. They don’t have a lot of options available. Some are able to get mortgage or car loans, but at what cost? The interest rates on a poor credit auto or home loan are phenomenally high, as are the fees and costs associated with them. So how do you get better credit without getting shafted with interest and fees that cause even more financial hardship? The answer is with secured credit card offers. If your credit has suffered a huge hit due to late, or no, payments then a secured card will help lenders see you as a trustworthy investment again.

Unlike a regular credit card, a secured card has a deposit with the lender which becomes forfeit if there is failure to pay the fees. When filling out any secured card offers the lender will have a portion notifying the borrower of a) the amount of deposit which will be required upon approval and before issue of the card b) fees, costs and interest rates and c) the limit of the card. It’s vital to pay attention to every portion of the application.

While many people assume that the application is straightforward, many secured credit cards have hidden costs and fees within the fine print at the bottom of the application. These fees can amount to $200-$300, which is sometimes the limit of the card. Essentially, when the card arrives in your mailbox, it already has reached its limit of funds and those must be paid off before use.

Besides the initial fees, some secured credit card offers have monthly and yearly fees. These fees can be up to $150 for the year or $12 a month (or, in some cases, both). Consider carefully before accepting an offer from a lender with these terms.

Another fee that some lenders require is an insurance fee for non-payment. This fee can be beneficial to both parties, however, it’s sometimes excessive. If the fee seems to high, it probably is. Of course, it may be seen in a different light if you were unable to pay for a few months due to a job loss or medical emergency.

When it comes to secured card applications, don’t be afraid to shop around and get the best deal. While having poor credit isn’t an ideal situation, it doesn’t mean you have to depend on poor terms to rebuild your credit. Additionally it’s important to note that every card you apply for can have a negative impact on your credit score. Be sure to read the terms before sending in applications in order to pick the best secured card offer.

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