credit cards

Is a secured credit card right for you


Listen to audio

Editor's note: This is a transcript of the audio file.

Is a secured credit card right for you?

I'm kristin arnold with the Personal Finance Minute.

A secured credit card is where you make a cash deposit that serves as collateral. The amount of the deposit is typically – but not always – equal to the credit line you receive. Consumers often turn to secured credit cards when they are looking to establish or rehabilitate their credit ratings.

When shopping for a secured credit card, you'll want to verify that the card issuer will report your timely payments to the 3 major credit bureaus. And watch out for fees, avoiding application fees altogether and even trying to stay away from annual fees. A recent survey found nearly half of secured credit cards do not charge annual fees.

Always look for the lowest interest rate, but better yet, pay the balance in full each and every month. You don't need to carry a balance to build your credit.

For more on secured credit cards , check out the recent survey of secured credit cards at

I'm Greg McBride.


Editorial Disclaimer: The editorial content is not provided or commissioned by the credit card issuers. Opinions expressed here are author’s alone, not those of the credit card issuers, and have not been reviewed, approved or otherwise endorsed by the credit card issuers.

Show Bankrate's community sharing policy
          Connect with us
Product Rate Change Last week
Balance Transfer Cards 16.42%  0.01 16.41%
Cash Back Cards 16.71%  0.02 16.69%
Low Interest Cards 11.89% --0.00 11.89%

Credit Card Blog

Mitch Strohm

Best credit card rates for Wednesday, May 25

It's a good time to be in the market for some new plastic.  ... Read more

Connect with us