Secured Credit Cards
Build Credit History with Secured Credit Cards
For people with limited or no credit history it can be difficult to get unsecured lines of credit. Secured credit cards give you the opportunity to build or reestablish your credit history.
You are guaranteed approval when you apply for a secured credit card, but the credit card companies require collateral before they issue the card. Make a deposit into a special savings account and that deposit now becomes your credit line. You are not allowed to make withdrawals from this account while you have the secured card. In case you default on your credit card payments the card issuer is authorized to deduct the credit card balance from the savings account.
You can choose your own credit line determined by your security deposit and you will have a card that works like any other credit card and can be used in stores, for online purchases, car rental reservations and cash advances.
The credit card issuer will report your payment history to the 3 major credit bureaus and if you remember to pay the bill on time the lenders will award your financial responsibility with an unsecured credit card.












