July 3, 2013
What is a secured credit card? Why would you request one?
What is a secured credit card? Why would you request one?
A secured credit card is a type of credit card that is backed by the amount in a savings account that the person who owns the secured credit card deposits money into. Most of them allow you to use only as much as what you have in the savings. These type of credit cards are good for people with no credit or bad credit. They can used to build credit so that you can get a non secured credit card.
Another great answer, Thomas. After 6 months or so of using the credit card wisely (pay on time and don’t go over the credit limit) you can ask the bank or credit union to drop the secured part and that will make it a regular credit card. BIG POINT: Pay that credit card off in full every month. If you cannot do that, DO NOT OWN A CREDIT CARD whether that is a secured card and a regular one.