Table of Contents
Introduction
When it comes to building credit, many individuals face challenges due to a lack of credit history or a low credit score. This can make it difficult to qualify for traditional credit cards, leaving them with limited options. However, the Surge Secured Mastercard aims to provide a solution by offering a secured credit card that can help individuals establish or rebuild their credit. In this article, we will explore the Surge Secured Mastercard, its benefits, drawbacks, and whether it is truly a surging option or comes with secured setbacks.
The Surge Secured Mastercard: An Overview
The Surge Secured Mastercard is a credit card designed specifically for individuals with limited or poor credit history. It requires a security deposit, which serves as collateral for the credit limit. This deposit is fully refundable and can range from $300 to $2,000, depending on the applicant's creditworthiness. The credit limit is typically equal to the amount of the security deposit.
One of the key advantages of the Surge Secured Mastercard is that it reports to all three major credit bureaus – Experian, Equifax, and TransUnion. This means that responsible use of the card can help individuals build or improve their credit score over time. Additionally, the Surge Secured Mastercard offers a mobile app that allows cardholders to manage their account, make payments, and track their credit score.
The Benefits of the Surge Secured Mastercard
1. Credit Building: The primary benefit of the Surge Secured Mastercard is its ability to help individuals build or rebuild their credit. By making timely payments and keeping credit utilization low, cardholders can demonstrate responsible credit behavior, which is crucial for improving their credit score.
2. Security Deposit: The security deposit required for the Surge Secured Mastercard provides a sense of security for both the cardholder and the issuer. It reduces the risk for the issuer, allowing them to offer credit to individuals with limited credit history or poor credit scores. For the cardholder, the security deposit ensures that they have control over their credit limit and can avoid overspending.
3. Credit Limit Increases: With responsible use of the Surge Secured Mastercard, cardholders may be eligible for credit limit increases over time. This can be beneficial for individuals who are looking to increase their available credit and improve their credit utilization ratio.
The Drawbacks of the Surge Secured Mastercard
1. High APR: One of the main drawbacks of the Surge Secured Mastercard is its high annual percentage rate (APR). The APR for this card can be significantly higher compared to traditional credit cards. This means that if cardholders carry a balance from month to month, they may end up paying a substantial amount in interest charges.
2. Annual Fee: The Surge Secured Mastercard comes with an annual fee, which can range from $75 to $99, depending on the applicant's creditworthiness. While this fee is common for secured credit cards, it is an additional cost that cardholders need to consider.
3. Limited Rewards: Unlike many traditional credit cards, the Surge Secured Mastercard does not offer any rewards program. This means that cardholders will not earn cash back, points, or miles on their purchases. While this may not be a significant concern for individuals focused on building credit, it is worth considering for those who value rewards.
Case Study: John's Experience with the Surge Secured Mastercard
John, a recent college graduate, had limited credit history and was struggling to qualify for a traditional credit card. He decided to apply for the Surge Secured Mastercard to start building his credit. John made his security deposit of $500 and received a credit limit of $500.
Over the next year, John used his Surge Secured Mastercard responsibly. He made all his payments on time and kept his credit utilization below 30%. As a result, his credit score gradually improved. After 12 months, John was pleasantly surprised to receive a credit limit increase to $1,000.
With his improved credit score, John was able to qualify for a traditional credit card with better terms and rewards. He decided to keep his Surge Secured Mastercard open to maintain a positive credit history and continue benefiting from the credit limit increase.
Conclusion
The Surge Secured Mastercard can be a valuable tool for individuals looking to establish or rebuild their credit. It offers the opportunity to demonstrate responsible credit behavior and improve credit scores over time. However, it is important to consider the drawbacks, such as the high APR and annual fee, before applying for this card.
Ultimately, the Surge Secured Mastercard can be a surging option for those who are committed to building their credit and are willing to pay the associated costs. By using the card responsibly and taking advantage of credit limit increases, individuals can pave the way for better credit opportunities in the future.
