What is a Secured Credit Card?

Hey Hubsters! Today we're talking about secured credit cards, which are great for people who are trying to build credit And really good for people with damaged credit or newcomers, as well

The main difference between secured credit cards and other types is that they require a refundable security deposit, and that deposit then doubles as your spending limit For instance, if you put down a $200 security deposit, your spending limit is then also $200 Other than that though, they work just like any other credit card, which means that information about your account will be reported to the three main credit bureaus monthly And that means that your credit score will start to improve over time as long as you're using that card responsibly Think about it like renting a new apartment

You pay that initial full security deposit and then get it refunded to you as long as you're ready to move out with no damage And in the mean time, you pay monthly rent That's how these secured credit cards work You make monthly payments to build your score while your accounts open and then as long as you close it in good standing, you get that full security deposit refunded back to you Approval is also a lot easier with these secured credit cards, which is another reason why they're so great for building credit

Some of these cards won't even check your credit when you apply You usually only need a valid social security number, that initial deposit — usually around two hundred dollars — and enough income to cover your monthly expenses And then as long as you're paying your secured credit card bill in full every month and staying below that spending limit, your credit score should start to improve within a matter of a year So to get started and find the best secured credit card for you, click the link right here