Updated: Sep 7, 2020
A secured credit card requires a refundable security deposit when you sign up for approval. The total deposit is usually your credit limit and prevents you from spending over the limit set and provides the lender complete security against default. Secured cards are a great way to start building credit or help rebuild your credit showing positive spending habits on your credit report. Most secured credit cards are pretty much guaranteed approval without scrutiny to your credit history. A secured credit card is a credit card that requires you to place a refundable security deposit, the amount of which becomes your credit limit, preventing you from spending more than you can afford to repay.
Also keep in mind that secured cards are more affordable than unsecured cards that may require high fees and demand higher interest rates if you have a low credit score. If you have a low credit score there is no red carpet rolled out for you the potential customer, so you might find it best to use a secured card while building positive credit history on your report. If you have no credit history on your report it is recommended to have at least three credit accounts on your report. At least 2 revolving credit accounts and 1 loan account is recommended. This helps you build your credit score by providing a good credit mix showing you can manage different credit accounts to potential lenders in the future.
Now there are many secured cards to choose from many financial institutions in the market place but very few will accept your business without you first providing a full deposit up front. This is where some new lenders differentiate themselves from the standard secured cards out there.
We recommend SELF® as an alternative to the regular secured cards out there.
Some of the benefits of SELF:
no up-front security deposit
no credit score required
Report to all 3 major credit bureaus
start as low as $25 per month (refundable deposit*)
If you would like to pay the deposit up front and not have to worry about a monthly payment towards your deposit then we also recommend The Credit Builder Card.
Some of the benefits of The Credit Builder Card:
Low up-front $200 security deposit
no credit score required
Reports to all 3 major credit bureaus
Refundable security deposit*
These are some cards that may make a big difference to raise your credit score and help you build positive habits when it comes to your credit use. If you need any help on picking the right card and building positive credit history, please contact us today at
1 - 855 - 495 - 9212. Call now and get a Free Credit Consultation.