There are 3 questions that you must ask yourself before applying for secured credit cards. If you go for a secured card without finding answers to these 3 questions, you may regret it later.

1. Is the Interest Rate Sensible?

If you've applied for secured credit cards, it is quite likely that you have some credit problems. Don't let this force you into paying high interest rates. Most of today's secured credit cards have good interest rates with some having as low as 10%. If the company to whose credit card you have applied, charges you a very high interest rate, avoid it. Don’t allow the company to con you. You will be better of with another secured credit card company.

2. Do they charge any Fees?

When you apply for secured credit cards, you'll find some companies will charge you an annual fee. It is ok in certain cases. An annual fee not exceeding $60 is acceptable. But don’t pay over $60 in annual fees for a secured credit card. When you get a secured credit card, you are using a savings account as collateral for that line of credit. This puts the creditor in a safe position. Don’t allow the creditor to charge you heavy fees. Select secured credit cards with nominal fees or no fees at all. They are available.

3. Will Your Credit Line Ever Turn Unsecured?

When applying for secured credit cards, ensure you only apply to the companies who will reward you for a good payment history. Find out the credit card company's policy regarding hiking your credit limit without asking for extra security deposit. You can get this just by asking. If you've paid your statements on time for a year without a single late payment, the credit card company will be very glad to raise your credit limit, ultimately giving you an unsecured line.

Always answer these three questions whenever you want to apply for secured credit cards. If you ask yourself these questions and get positive answers, rest assured that applying for secured credit cards will certainly help your financial future.