How Secured Credit Cards Work?
What is a Secured Credit Card?
A secured credit card is a type of credit card that requires you to put down an upfront cash deposit, usually equaling the amount of your credit limit.
A secured credit card works as the first step for young adults or people who don’t have an established credit history to have access to credit. They also work for consumers with poor credit.
How Do Secured Credit Cards Work?
They recognize an ability to make credit card payments quickly and may eventually clear the way to another favored line of credit used by millions: unsecured credit cards.
Who Uses Secured Credit Cards?
If you make timely payments and keep your balance low over time, this can help build up your credit line and scores.
How Can a Secured Card Help Build Credit and Improve Your Credit Score?
Your application might be turned down if you have any of the following: - Bankruptcy on your record - No verified income or too low of an income - Insufficient funds to cover the deposit - A deficient score
What Does a Credit Card Issuer Evaluate for Approving a Secured Credit Card Application?
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