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Digital News Report – Credit cards have become more difficult to acquire over the past years because of the tightening of credit and new rules. But they are still a necessity, especially if you need to rent a car or stay at a hotel. The card may also be needed as a second form of identification.
The new Capital One® Secured MasterCard® offers a way for borrowers to improve their credit score. The card is designed for people with poor or bad credit.
Although there is a security deposit required, you may be able to qualify for a credit line, the company said. There is a $24 annual fee as well.
This is a credit card and not just a debit card. The interest rate is 19.8%.
The goal is to establish or improve a bad credit score. The bank will report your payments to the 3 major credit bureaus, Equifax, Experian, and Transunion. If you make your payments on time, you can improve your credit score.
Because your payments are reported to the credit bureaus, you may not want to pay your cards off in full the first month. You will be developing a credit history by making the required payments on-time.
By: Tina Brown