What is a Secured Credit Card
A Secured Credit Card
is a credit card that uses cash deposit as collateral. Usually your secured credit card limit is the amount of cash used to secure the credit card
. Secured credit cards are ideal solution for people with bad credit history or without credit history
. Secured credit cards help people establish and/or re-establish their credit history
Having a credit card is a must in our moder society. Even if you don't need credit card for the credit itself, you'll need it to make online purchases
, to book car, hotel, flight or vacation. If you don't qualify for regular credit card, a secured credit card might be the only solution for you.
Many banks and financial institutions offer secured credit cards
, and usually the deposit required to secure the card is anywhere between $300 and $1,000. Usually the credit card limit will be the same as the deposit or a few percentage points above it.
Most secured credit cards
have yearly fees, so make sure you are aware of them before applying.Usually secured credit cards have higher interest rates compared to the regular credit cards.