Secured Credit Cards—Are Bad Credit Credit Cards A Good Idea?

Many people see secured credit cards as a bad credit credit card, meaning it is mostly for those who have bad credit.  While a secured credit card is a great option for those who have bad credit, they are also a great way to rebuild your credit history and improve your credit score.

A secured credit card is just like an unsecured credit card only it is backed by an account into which money by the cardholder has been deposited.  This card is for those individuals that are serious about getting their credit score back in line and want to use a credit card that isn’t going to charge outrageous interest.

Individuals with bad credit are usually only going to get a high interest credit card if they can get one at all.  While many cards available to those with bad credit are not optimal, a secured credit card is going to offer a better rate, in most cases.

If you are looking to get a secured credit card to repair your bad credit you will want to shop around and go with a reputable lender.  You don’t want a card with excessive fees or a high interest rate and you need a lender that understands you want to improve your credit.

Keep in mind the account securing the credit card doesn’t work like a debit account and you will have to make payments on your card purchases.  However, with budgeting and using a secured credit card wisely, you will be able to get your credit score back on track.