How To Get Credit If You Have Bad Debt

No one wants to give you a credit card anymore. You are maxed out, what can you do? Here are a couple of options and we are going to have a look at them. One is a debit card, the other is a secured credit card.

Most people have heard of debit cards, they work like a mobile bank teller. You go to the store and it is time to pay so you pull out a card similar to a credit card and swipe it threw the machine. Enter your security code and the bank mystically transfers money from your account to the stores’. The key words are transfers money, if there is no money in your account nothing happens. It is similar to using cash, you have to have it to spend it.

The benefits of debit cards are you cannot spend more than you have in the account. There is some security to the debit card, if it is stolen you can cancel the card and get a new one. There have been numerous reports of “fake” debit machines at all kinds of stores. This is where a person working at the company brings in their own machine, when you swipe the machine it records your account info on the card and your security code. This gives them access to your account and normally they will empty it as soon as possible. The only defense against this is look at the machine, is there anything strange about it. If you are unsure ask to speak to a manager or use cash. Also check your monthly bank statements for any transactions you did not do and report that right away.

Some other downsides are you can spend all the money you have in your account. Debit cards only stop you when the money is all gone. For some of us that can be too soon in the month. For those of us with a flair for spending I still recommend using cash or the next type of card, a secured credit card.

A secured credit card is like a pre-paid phone card, except you can use it anywhere a credit card is accepted. It looks like a normal credit card but there is a value either recorded onto the card or the account the card is associated with. These are great for people who overspend because when the money is spent the card no longer works until you “recharge” the account.

One of the common downsides to these cards is there can be service fees galore to them. A small fee to set it up, re-charge it, statements and on and on. For some people who cannot use cash for everything I think they are the way to go. Shop around for the best deal and only put small amounts of money in this account to force you to watch your spending.

Take charge of your spending by using these methods to get spending under control. Be smart to be wealthy.

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