Compare Secured Credit Cards

Develop a Credit History

As you use the card responsibly, pay off balances accordingly or meet the payment requirements set out by the credit card company, you develop a credit history.

Once a good credit score is established, you have a better chance having the security deposit requirement waived or obtaining another personal credit card such as a rewards credit card or even other credit products such as a line of credit or mortgage loan.

Even though secured credit cards are a valuable tool for those who've been turned down for other types of credit and are in some ways an ideal solution to building up a credit score, there may be additional fees associated with acquiring one.

That's why it is important to shop around for the right secured credit card to ensure you're not paying more in fees and charges than you should. Some card issuers will charge an application fee. Others may have higher interest charges or heavier late payment penalties. On the positive side, some card issuers might pay interest on the sum you have on deposit.

In the process of comparing secured credit cards, be sure to find out how long your deposit is needed by the credit card issuer before you could become eligible for an unsecured credit card. Some companies may require you to have the money locked in for more than one year.

It's always a good idea to examine terms of use carefully, as different card issuers have different fee structures, charges, minimum deposit requirements and payment policies.