Get Access to Credit with a Secured Credit Card

Secured credit cards are an ideal way to get access to credit even if you don't have a perfect credit history. Generally, secured credit cards are available for those individuals with a credit score below 600, which means if you've missed payments, are just starting out, or perhaps defaulted on a small amount of credit you can still get approved for a Visa or Mastercard.

Secured credit cards are available from a variety of banks, and feature a wide range of options in terms of interest rate, deposit requirements, and annual fees. Be sure to read the complete details about the card or cards that you're applying for before signing up for a secured credit card.

Understanding your Secured Credit Card offer

There are several important things to look out for when applying for a secured credit card. The first thing to recognize is that generally your credit line will be determined based on the deposit you provide, and generally will not exceed your initial deposit; at least to begin with. Once you've started making regular monthly payments, over time you may be able to request an extended credit line beyond your initial deposit.

A secured credit card is different from a debit card. The transactions that you perform with your secured credit card are reported to the major credit bureaus and are therefore valuable to help you improve your overall credit score. Even though you have “secured” the amount of your credit line, you're still required to make regular monthly payments. If you miss a payment, that amount will be deducted from your deposit, along with additional missed payment fees, and your credit score will not improve. A debit card, while secured with the funds in your bank and likely feature a Visa or Mastercard symbol, does not get reflected on your credit report.

Secured versus Unsecured Credit Cards

Secured credit cards, by their very definition, require a deposit to establish a line of credit, while unsecured cards generally do not. The fees for both types of cards can vary widely from card to card, so it's important that you shop around for the best deal for your particular circumstance. If you're unsure of your ability to access credit, you can try to apply for an unsecured credit card and see if you are approved. If you're consistently declined by unsecured credit providers, it's likely that you will need to apply for a secured card to put your credit back on track. Another difference between secured and unsecured cards is that secured credit cards generally don't feature any rewards programs. Keep in mind that for most people, getting a secured credit card is part of a broader task to improve their credit score.

Leading Reasons to get a Secured Credit Card

The number one reason to apply for a secured credit card online is to start rebuilding your credit after a major personal financial setback. Many individuals find themselves in need of a secured credit card after a divorce, an unexpected lay-off, or a significant medical emergency that damages their credit rating. All of these events are understandable, and the credit card companies will work with you to help you repair your credit.

Another feature of secured credit cards is that it enables you to grow your total base of available credit. This is a valuable feature for individuals that don't have a significant credit history or for those that simply don't use credit that often. If you're considering purchasing a home, you might want to use a secured credit card to increase your total amount of available credit. Used sparingly (and not more than to a total amount of 40% of your available credit) can mean improving your chances of getting a better credit score and a better interest rate on your home purchase.

Applying for a secured credit card online is easy and hassle-free. Shop through our range of options, find the card that's right for you, apply, and based on your approval, fund your account. Within a few days you can be back on track to a better credit score and an improved financial future.