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Establish credit with secured credit cards – to establish credit history for a new business and for bad credit repair

[Wednesday, March 2nd, 2011]

Secured credit cards offer a simple solution, especially for those business owners, who are in need of bad credit repair and for those who need a credit card in order to start building a credit history. These secured credit cards are much more affordable in most cases and comes to the aid of most business owners who are in the process of establishing a good credit history, and helps in getting unsecured credit cards at affordable rates in the long run.

However, there are pros and cons with the secured credit cards too, and it is wise to research not just the different secured credit card options, but one may also have to check to see the better option – if it is the secured card or the unsecured card.

New businesses that are looking at establishing a positive credit history may find some unsecured credit card offers, but will carry a high interest rate as the company will not have a credit history.

Secured credit cards are much more affordable and sometimes have much lower interest rates because they are backed by the business owner’s account, where the owner would have deposited a certain sum of money as collateral to the lender. However, secured options will set a credit limit depending on the sum that is deposited as collateral. There might be a cap on the amount that they can access for their businesses.