Find the Right Secured Credit Card with These TipsReviewAdvice

Find the Right Secured Credit Card with These Tips

If you are trying to establish a credit history or rebuild one, a secured credit card is an excellent way to achieve this. How these cards work is you make a deposit that serves as collateral for the account and your credit limit. From there, you can make regular purchases just as you would with a credit card and the lender will assess finance charges and may report your payment histories to each of the three credit bureaus. This means by making punctual payments you build a satisfactory account and bolster your credit score. To help you find the right card, here are a few tips to assist you.

Comparison Shop for Cards

This is one of the best ways to find the right secured credit card for you. When you examine cards be sure you investigate the fees the lender charges, if they report your payment information to the credit bureaus and whether there are special restrictions on the account such as you having to carry insurance. It's ideal that you choose a card that reports your payments to the credit bureau and doesn't require an annual fee. Armed with this information, it can help you whittle down the choices until you find the most appropriate card for you.

Find the Right Secured Credit Card with These Tips

Prioritize Your Needs

Along with building your credit score, a secured credit card can offer you many benefits. With this in mind, it's important that you prioritize what you want from your card. Whether you are looking for a card that offers flexibility such as the ability to increase the credit limit over time or one that offers zero liability on fraudulent purchases, by assessing your needs first it can help you identify the right option.

Consider Your Local Bank

If you have an established relationship with a financial institution, it's a good idea to ask if they offer secured credit cards. This is an excellent avenue for you to pursue because they might be more flexible on rates with your card since you already have a relationship with them. In turn, this may give you the option to build a good credit history while also paying less.

Research the Lender's Reputation

Similar to other forms of credit, with secured credit cards there are great lenders and bad ones. One of the ways to identify the good from the bad is by the fees and requirements they make. For example, if a lender is willing to offer you a secured credit card with no annual limit and no restrictions whereas another one wants you to pay a costly insurance premium monthly, then it's pretty simple to see which bank is the better one. In addition, you can research a lender's reputation online by using the Better Business Bureau's website. The bureau assesses a grade from A to F in part on customer service. If you notice the lender has many unresolved customer complaints it should raise a red flag. Ultimately, by researching a lender's reputation it ensures you receive a fair deal while you are working to build your credit.

Last Updated:

Join the discussion

Replying to Cancel

Your comment has been submitted and is awaiting approval from one of our administrators. Thank you for your readership!


Submitting your comment...

16 Great Money Saving Tips!

Cut expenses by $500+ a month. Download our FREE eBook today.

Download Now

Have you found our content useful?


Join our newsletter to receive the latest money saving advice, reviews, and offers!

YesI want to learn how to be a smart consumer!NoI'm not concerned about wasting money

100% privacy. We will never spam you.

Where should we mail you our
money saving advice, reviews & offers?

100% privacy. We will never spam you.

Adding your email to our mailing list.

Please wait just a moment

Your email has been added!

Thank you for signing up.


Looking for the best secured credit cards?

We've researched and reviewed the top companies.

See Our Top 3

Advertiser Disclosure

In order for MoneySavingPro to remain a consumer free service, many of the companies covered in our industry reviews compensate MoneySavingPro for new sign ups.

However, the results of our comparison tools, the rankings of the providers and the information presented is not affected by compensation. Indeed, many of these companies approach us for an advertising partnership after we have already written a published their reviews.

While we try to research and review as many providers as possible in the 100+ industries we cover, we have not reviewed every company available.

Our rating system is independent of compensation and reflects our true understanding of the industry and the company based on a variety of factors. The companies that receive the highest rating will always be the providers that we believe offer the best value to the consumer.