credit cards

How do I: Get secured credit cards?

Topic: Credit cards
Who is affected: CONSUMERS AT EVERY STAGE OF LIFE
DEGREE OF DIFFICULTY: Easy
What you'll need: starting deposit between $300 and $500

What you need to know

With a secured card, you place a deposit with the lender and are allowed to make charges up to the amount of the deposit. Secured cards work like any other credit cards, allowing you to charge purchases and to either make minimum payments or pay off the entire balance.

The best thing about a secured credit card is that it helps you either build or rebuild your credit. However, you must make sure the company supplying the card reports to major credit bureaus. After about a year of paying on time and reporting to the credit bureaus, most companies will extend an offer to get an unsecured card.

Be careful when shopping for a secured card. Some companies take advantage of people in this situation and may charge unnecessary extra fees.

To find a reputable lender, search through Bankrate's list of secured credit card issuers.

Step-by-step
Not sure about your credit score? Check out the FICO Score Estimator.

 

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Balance Transfer Cards 15.66%  0.01 15.67%
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