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Building Good Credit with Secured Credit Cards

What is a secured credit card?

A secured credit card is where you pay a bank an amount of money, say $500 and receive a credit card with a $500 limit on it. You use the credit card in exactly the same way as any other credit card and make regular monthly payments to pay off any money that you spend using the card.

The credit card is secured against the money you have in the bank so there is no risk for the lender because they simply take this balance if you don't pay the balance on your credit card. Most banks will even give you interest on the initial payment you make to secure the credit card.

How this helps to build credit:

This is a great way for people with bad credit to build up their good credit. Firstly there is no risk for the bank so there should be no problem in them giving you a secured credit card.

Secondly if you are making regular and consistent repayments on your card then you are building a positive credit history on you credit report that shows you consistently pay off your debts.

What to watch out for:

You must repay your monthly amounts without fail or you'll just be damaging your credit more. Also make sure you don't go over your limit on purchases. This can be easy to do because secured credit cards do not allow large credit limits.

Secured credit cards don't make a big financial impact on repaying interest rates because at the low credit limits, even with high interest rates your repayment interest will be low.

Many secured credit cards will be free to open, so be wary if a company offers you low interest rates but a high annual fee or start-up costs.

Building good credit

If you use your secured credit card often and make regular payments then you will build a thread of good credit history. After a year or so you can apply for other credit, such as a non-secured credit card. If you manage this properly too then you are well on the way to establishing good credit. But remember that you must avoid penalties for late payment. 

  New Millennium Bank Platinum Visa® or MasterCard®
 

  • No CREDIT CHECK

  • Approved REGARDLESS OF CREDIT HISTORY

  • Credit Limits UP TO $10,000*

  • Reports to ALL 3 BUREAUS

  • Get CASH AT OVER 740,000 ATMs

  • Emergency CASH TRANSFERS

  • Auto RENTAL INSURANCE

  • $100,000 TRAVEL ACCIDENT INSURANCE

  • Extended WARRANTY PROTECTION

  • Special HIGH INTRODUCTORY SAVINGS RATE
Intro APR Intro Period Annual Fee
19.5% n/a $59
 
The BuyRIGHT Prepaid MasterCard®
 

  • Get cash at over 900,000 ATMs worldwide
  • Pay your bills online or over the phone
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  • NO credit checks
  • NO employment verification
  • NO monthly or annual fees
Intro APR Intro Period Annual Fee
0% n/a None
 
  Orchard Bank Gold MasterCard®
 

  • Enjoy the prestige of a Gold MasterCard

  • Receive Gold card privileges and benefits

  • Great credit card to strengthen or rebuild your credit

  • Reports to all 3 credit bureaus monthly, which can help improve your credit score

  • Free Online 24-hour Account Access and Bill Pay

  • Periodic credit limit increases

  • 4 Plastic Designs to choose from

  • Choose your own Plastic

Intro APR Intro Period Annual Fee
14.9% n/a $79
 
  Orchard Bank Platinum MasterCard®
 

  • Enjoy the prestige of Platinum with no up front fees

  • Premium Platinum benefits including Purchase Protection

  • Great credit card to strengthen your credit

  • Reports to all 3 credit bureaus monthly, which can help improve your credit score

  • Free Online 24-hour Account Access and Bill Pay

  • Periodic credit limit increases

  • 4 Plastic Designs to choose from

  • Choose your own Plastic

Intro APR Intro Period Annual Fee
14.9% See website $39-59
 
  Orchard Bank Secured MasterCard®
 

  • Reports to all 3 credit bureaus monthly, which can help improve your credit score

  • Free Online 24-hour Account Access and Bill Pay

  • Complete your application, including your security deposit, online

  • Set your own credit limit
Intro APR Intro Period Annual Fee
14.9% See website $35
 
  Orchard Bank Silver MasterCard®
 

  • Great credit card to strengthen your credit

  • Reports to all 3 credit bureaus monthly, which can help improve your credit score

  • Free Online 24-hour Account Access and Bill Pay

  • Periodic credit limit increases

  • 4 Plastic Designs to choose from

  • Choose your own Plastic

Intro APR Intro Period Annual Fee
14.9% See website $49
 
  Discover® MoreSM Card - American Flag
 

.  0% Intro APR*

.  5% to 20% Cashback Bonus® at top retailers through our exclusive online shopping site

.  Up to 1% Cashback Bonus on all other purchases automatically*

.  Unlimited cash rewards

.  $0 Fraud Liability Guarantee

.  Easiest online Account management options

.  No Annual Fee

Intro APR Intro Period Annual Fee
0% See Website $0
 
  Total Visa Credit Card
 

Are you discouraged by a poor credit history? Total Visa® offers a credit card for people with less than perfect credit. Apply today and with our instant online decision, you may be approved in minutes.

  • Instant Online Decision
  • Monthly Reporting to All Major Credit Bureaus
  • Free 24 hour Online Account Access
  • Fraud Protection
  • Outstanding Customer Service
Intro APR Intro Period Annual Fee
See Website See Website See Website
 
 

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