Secured Vs Unsecured Credit Cards: Which Is Right For You?
September 11th, 2018 2:13 am | By Content Uploader | Posted In Business News, Credit, Credit Card Tips, Loans
Are you trying to obtain business financing? Do you need a personal loan to pay for something? Well, you’re not alone. According to a recent survey conducted by Harris Poll, more than 126 million Americans use credit to pay for the things they need. Whether those items are personal or commercial doesn’t matter. The point is that credit cards are a useful tool in today’s economy.
Both new and established businesses can benefit from the responsible utilization of credit, and the same can be said about individuals. Although the average household carries about $7,000 in total credit card debt, most people are still searching for ways to gain access to low-interest credit card funding. Knowing the difference between secured and unsecured credit cards can help those people determine which offers are right for them.
Before you choose which type of funding you need, however, it’s important to consider the pros and cons. Unsecured credit card offers have become extremely popular, but it’s not the only option. The word “unsecured” simply means that no collateral is required to open the account. On the other hand, secured cards and loans require the user to put up collateral to be approved. Often, this includes betting your house or car that you’ll be able to pay the debt back without making any mistakes.
Unfortunately, life is unpredictable. Consumers and business owners can’t always be sure what will happen, so putting up such high collateral to use a credit card is risky. When the choice is between secured and unsecured credit cards, it seems as though unsecured credit card funding wins more often than not. In fact, there are several good reasons for that and collateral is just one of them.
Why Unsecured Credit Card Offers Take the Cake
As mentioned, unsecured credit cards need no collateral from the cardholder, which removes some of the risk from the borrowing process. Additionally, unsecured funding can be used to pay for a variety of expenses, especially when you use that credit card for business. This often includes purchasing new real estate, expanding your existing property, remodeling, marketing, and equipment purchases.
Since you’re not required to use any collateral, however, the interest rates are typically higher than they are on secured loans. In short, this means that you pay a little more each month for the convenience of an unsecured credit card. It’s a trade-off you’ll need to consider before opting for any unsecured credit card offers.
Finding unsecured loans fast is a real possibility these days. When you obtain your cards through the right source, you may be able to avoid hefty interest rates altogether – getting the best of both worlds. Fortunately, there are several financial institutions that offer unsecured credit card funding. The secret is to work with a company that can put you in touch with those specific lenders, especially the ones who are most likely to approve your application.
While looking for the best unsecured credit cards for yourself or your business, it’s important to consider and compare the terms and conditions of each offer. To make your decisions easier, simply ask the following questions:
- What is the term of the loan?
This usually doesn’t apply to credit cards because they are a revolving source of credit. However, some unsecured credit card offers require users to repay the total amount borrowed within a pre-specified amount of time.
- How much interest will I pay over the life of the loan?
Interest rates vary based on a variety of factors including:
- · The card issuer
- · The type of card you choose
- · Your credit scores
- · Your credit utilization ratio
- · The amount borrowed
Be sure to take advantage of any introductory APR offers. To reduce the amount of interest you’re charged, pay your bill in full during the introductory period. Also, if the card offers a low balance transfer fee, it’s wise to send your existing balances to that low-interest card to pay down your debt faster.
- Is there a repayment penalty?
Some secured cards impose a steep penalty on cardholders who don’t pay the balance in full each month. On the contrary, most unsecured credit card funding options have more flexible repayment options with no harsh penalties attached.
With the right type of credit card funding, you can start a business, get your finances back on track, or simply pay for the things you want without incurring extra costs or putting your assets at risk. While there are many types of financing to consider, unsecured credit cards are gaining popularity for a good reason. In fact, there are several benefits to choosing unsecured credit card offers over the secured counterpart, many of which may be ideal for business ventures.
How to Get Unsecured Loans Fast
A line of unsecured credit gives the cardholder access to the funds necessary to complete a specific task or project. As willing as consumers and business owners are to obtain those funds, many lenders are just as eager. It’s important to find unsecured loans fast because of the following reasons:
1. Unsecured credit card funding allows you to use the money you need when you need it.
2. Unsecured credit cards help you balance the ups and downs of life.
3. Unsecured credit card offers can be obtained fast, giving you access to the funds you need without delay.
4. Unsecured credit cards require zero collateral.
5. Unsecured credit card funding provides low minimum payment options, especially if you borrow a small amount of money.
6. Unsecured credit cards impose no fees, especially when they’re used for business expenses
With so many benefits, an unsecured line of credit may be the best way to improve your financial situation. Most notably for businesses in need of capital, unsecured business loans are highly advantageous. Luckily, the vast majority of credit card offers on the market are unsecured. Working with the right company will help you get the money you need quickly. Here is how to tell if you’re working with the right source:
1. The company will analyze your credit profile for free.
2. The company will use the information obtained in the credit analysis to match you with the most willing lenders.
3. The company will submit unsecured credit card funding applications on your behalf.
4. The company will charge a minimal fee for their services, usually charging their fees to your credit card balance as opposed to requiring the money upfront.
5. The company will be able to help you qualify for more money through a series of credit improvement strategies.
Remember that unsecured credit card offers are everywhere, but they’re not all created equally. Using an intermediary may seem pointless, but you’re bound to get a better deal that way. In fact, a good financial services company can help you become qualified for even more money – all without lenders asking for risky collateral.
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