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Best Secured Credit Cards for Bad Credit

Secured credit cards are for those who do not have any credit history like students or new comers. It is like a stepping stone to build a credit history. Secured credit cards require deposit to be held by the bank which is exactly your credit card limit as in if you have deposited RS. 10,000 in the bank you can charge up to RS. 10,000 or more depends upon your credit line.

The interest rate available on such credit card is generally lower as there is no credit risk for the bank issuing the credit card.

Remember secured credit cards are best used to build a good credit card score. This means you should make small purchases that you can afford to repay. The working of such cards goes as follows:

You make a deposit with the credit card company they put it in a non interest bearing account. The amount of you deposit is the amount of your credit line. They also send you a bill like any other credit card. If you don’t pay the bill they use your deposit as collateral.

The best secured credit card would allow the purchaser to convert into an unsecured credit card after they have established a period of timely payments. A secured credit card reports your payments to the credit card because to be included on your credit report.

You might also be able to deposit the interest earned on your deposit. is a list of secured credit card issuers always look for a card that does not charge an application fee. Every secured credit card charges an annual fee, and they vary dramatically. It is important not to take this as a green light to spending. However, you are still responsible for every penny you spend.

So choose and make use of your secured credit card wisely….

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