Secured Credit Cards Rebuild Your Credit History

Secured credit cards can help rebuild your credit history if you have a poor credit history.

These secured credit cards can also help you establish your credit history if you have a limited credit history or no credit history at all.

Most secured credit card issuers do not perform credit checks, and you will be approved for these secured credit cards regardless of your income or bad credit history.

Secured credit cards can be used anywhere regular credit cards can be used including online purchases, car rentals, phone purchases, and everywhere else you can use a credit card.

Secured cards can help you fix your credit history by reporting your on-time payments and solid account history to the major credit bureaus including Experian, Equifax, and TransUnion.

By making your credit card payments on time, you will be able to repair your credit history and increase your credit score, so that you may be eligible for an unsecured credit card in the future.

Unlike Unsecured Credit Cards that provide you with an unsecured line of credit, secured credit cards require you to deposit funds into a savings account, which act as collateral for the credit line available on the credit card.

Secured cards have a minimum balance requirement that you must deposit into the savings account and a maximum balance that you may deposit.

You’re credit limit will be equal to the exact amount of money you deposit into this savings account.

You can deposit additional funds into your savings account at any time to increase your credit limit up to the maximum of the card.

The money that you deposit as collateral into an FDIC-insured savings account will sometimes earn interest, depending on the secured card provider’s policies.

However, you may not withdraw money from your savings account at any time like you would be able to with other savings accounts. If you wish to withdraw your money, you must close your account first, and then your full deposit will be returned to you.

These credit cards are secured through the money you deposit into the collateral savings account, but you must actually pay your credit card balances from a different source, because that savings account is strictly to act as collateral.

It’s important to understand that there may be some fees associated with secured credit cards including 1-time application processing fees and annual fees in some instances.

However, these one-time application fees and the annual fees may be a small price to pay to rebuild your credit history, which will help you save money overall and reduce the interest rates you pay on your other loans.

These cards do usually have a relatively high interest rate, so they’re definitely not ideal to carry large balances from month to month, but that’s probably the best APR you’ll find if you have a bad credit history.

It’s also important to understand that these secured credit cards usually have no grace period before finance charges are applied to your new balances, so your purchases and cash advances will immediately begin to accrue interest charges.

It’s best to use these cards wisely with the goal of increasing your credit score, and you should avoid making unnecessary purchases on them, as the interest charges could easily become overwhelming.

Just use these cards to make a few regular purchases toward the end of each of your billing statements (to prevent interest charges from accumulating throughout the entire billing statement), and then pay your balances off in full as quickly as possible.

That way, you will be able to avoid excessive interest charges and have your positive activity reported to the credit bureaus, which will help rebuild your credit history and increase your credit score.

In order to apply for these secured credit cards, you must first fill out the online application form provided in the links throughout this article.

The issuer will then send you a secured credit card application in the mail, which you must complete and return with the processing fee.

Once they receive the application and processing fee, they will send you the documents needed to open your savings account that will provide collateral for the secured credit card.

You need to complete the savings account documents and then return them with the initial deposit to secure your credit card.

If you’re in a hurry to receive your card, some issuers can rush the processing of your new secured card for an additional fee.

Check out the details of these secured credit cards.

Take advantage of these secured credit cards that are available to anyone regardless of their income or credit problems to start rebuilding your credit history today.

Thanks and enjoy maximizing your money.


  1. Christine says

    does the new millennium credit card report as a secured credit card to the 3 credit bureaus?

    will the card be comverted to an unsecured card after time?

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