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If you don't have the free cash to place a deposit on a secured credit card, you probably shouldn't be getting a credit card in the first place.
by vonmoltke 7y ago
If you don't have the free cash to place a deposit on a secured credit card, you probably shouldn't be getting a credit card in the first place.
- maccard 7y agoWhy not? A credit card with a small limit is potentially a 60 day interest free emergency loan. For example, your car breaks down and you need $500 to repair it, but you don't have $500 in cash. Assuming you can't borrow from friends/fsnily/work, your options are lines of credit, and I don't know of anywhere other than a payday loan that I can get that sort of amount of money. Meanwhile $500 would fit on most credit limits, you get between 30 and 60 days of interest free payments depending on timing, and the interest rate is substantially lower than a short term loan if you do ever so slightly overrun,_and_ your credit isn't tanked if you can't afford the large end payments. Seems like a win win to ne.
- JetSpiegel 7y ago> For example, your car breaks down and you need $500 to repair it, but you don't have $500 in cash. But you need to pay $300 for this line of credit! What's the point then?
- asdff 7y agoSomething like 4 in 10 americans can't come up with $400 without selling something or going into debt, and a credit card is something everyone should have as it's more secure than debit and interest free if you don't spend more than you have and pay it off right away.