A secured credit card is nothing more than a credit card with a security deposit. You put money into an account owned by the cardholding bank and get a credit limit on the card that is typically 50% to 100% of the deposit. For example, if you put down $1000, you will be given credit in the range of $500–$1000. It is a great way to establish credit or repair bad credit.
You don’t have to live with the security deposit forever, either. Most banks will qualify you for an unsecured card after a period of making all your payments on time. The average is about a year.
You should also be sure that the bank reports to credit agencies. You do not want to spend the next two years scrupulously making regular payments on the card only to find out that it hasn’t affected your score. Learn More Here.
