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.

advertisement

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 15.80% --0.00 15.80%
Cash Back Cards 16.42% --0.00 16.42%
Low Interest Cards 11.09% --0.00 11.09%
 
Search
advertisement
CREDIT CARDS WEEKLY NEWSLETTER
Credit cards on a table

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

advertisement

Credit Card Blog

Jeanine Skowronski

Staples: 1.16M cards compromised

Another data breach has become official in 2014. Staples confirmed on Friday that  approximately 1.16 million consumer credit and debit cards were compromised as part of an incident it has been investigating since October. According to Staples, hackers obtained cardholder names, payment card numbers, expiration dates, and card verification codes, after sneaking malware onto the point-of-sale systems  ... Read more

Partner Center
advertisement

Connect with us