credit cards

Secured credit cards: What to know

Establish or repair your credit
Establish or repair your credit

These days, credit cards are inescapable. But for consumers with either no credit history or poor credit, obtaining a credit card can be a real challenge. In cases where the issuer sees the prospective cardholder as too risky, one option is to apply for a secured credit card.

Unlike traditional credit cards, secured cards require the cardholder to put down a cash deposit that serves as collateral if the bill isn't paid on time. Typically, the deposit amount is also the cardholder's credit limit, at least at the beginning.

While secured credit cards are a relatively straightforward product, they aren't the same as prepaid cards, which apply money paid in advance to any charges incurred. Secured cards have more in common with traditional cards. Before consumers apply for one, they should be aware of the fine print. It pays to look for the best deal.


Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 16.23% --0.00 16.23%
Cash Back Cards 16.48%  0.07 16.55%
Low Interest Cards 11.51%  0.08 11.59%
Credit cards on a table

Get advice for managing credit cards, building your credit history and improving your credit score. Delivered weekly.


Credit Card Blog

Sheyna Steiner

US dragged into modern payment era

Soon, consumers get a full-fledged payment revolution with EMV cards. Will fraud decrease?  ... Read more

Partner Center

Connect with us