A Secured Card requires you to make a deposit in order to obtain the credit card. If you are doing this – you are either a parent with a young child that needs a credit card – or you are re-building.
Because there are other ways to obtain cash for a child- let’s assume you fall into the “other” category.
If you’ve gotten into financial difficulty, and you’ve damaged your credit, a secured credit card can help you build your scores back up because they report your payment history to the credit bureaus… and we all know that payment history makes up the largest portion of your score.
Remember that when you get a Secured Credit Card – you are not having your credit pulled, so it will not pull your credit scores down!
A secured credit card operates just like a regular credit card. As I said, the major difference is that you, the cardholder, are making a deposit as security in case you default on the credit card payments. [Read more...]