A secured credit card is a credit card that requires you to pay a security deposit, in order to obtain an open line of credit. The amount of the deposit you pay becomes your credit limit. A secured card is a great way to establish and increase your credit score.
5 reasons To Get A Secured Card
- If you can't get approved for a traditional credit card.
- Your on time payments will report to all three credit bureaus
- Good payments could help you get approved for traditional credit cards.
- Your deposit is refundable, as long as you do not default on your payments
- Credit score improvements as your payments are made on time.
How To Manage Your Secured Cards
- Pay your secured card on time each month
- Do not use more than 10% of your credit limit
- The statement date of your monthly credit statement is the date the credit card company reports to the credit bureau.