Secured Credit Cards

Secured credit cards are a type of credit card that requires a deposit into the account before the card is activated for use. For instance, if you deposit $500 onto the card, you have a $500 credit line available for use.


    Pros
  • Ideal for those who have gotten into credit trouble in the past since it prevents over-spending and accruing debt
  • Most cards report to the credit bureaus, so it’s a good way to rebuild credit

  • Cons

  • Fees and additional charges can sometimes “eat up” the deposited amount. Be sure to shop around and find a card without an application fee and low annual fees.