A secured credit card is an excellent method for someone with poor credit to gradually build back their credit score.
It’s called a secured credit card because the account is secured with a refundable deposit that you must supply in order to set your initial spending limit.
If you use your secured credit card wisely and make timely payments, your should see your credit score rise and some card companies will give you the chance to “graduate” to an unsecured card. In this case, your deposits that had been used for security will be completely refunded to you.
One key feature to look for in a secured credit card is one with no annual fee. If you are struggling financially, there is no need to add an extra debit to your burden. With many secured credit cards in the marketplace, it can be difficult to choose the one that is best for you. Fortunately, our editors have done the leg work and have compiled a list of the best options available.
Citi is a CardRatings advertiser