Credit Advice

Secured credit cards are a type of credit card that requires a deposit before it can be issued. Designed for consumers with poor credit, the deposit is collateral against a customer defaulting on their credit card payments. Most secured credit cards will provide a credit limit equal to the security deposit.

Historically, secured credit cards have high fees and interest rates even though there is a deposit against default. In addition, secured credit cards often have an application fee. We suggest consumers read all of the fine print on secured credit card agreements since there are often hidden fees.

For people with poor credit, secured credit cards are sometimes the only option.

Nowadays it's difficult to get your first credit card without one of these.

I turned 18 this year and decided it was time to start my credit. This was the only thing I could get approved for without a co-signer. $100 deposit, $39 annual fee, and 22% interest. Pretty much sucks, but one of the only ways to start. After about 3 months of using it carrying over only a small balance like $5 or $10, my credit score was already 734.

Great to start credit, but don't keep it for more than a year and don't carry a big balance over or you'll just end up losing more money than it's really even worth. Plus you get your deposit back as long as you're good with it.

Vendejp is right, be very careful about them.  It's not that they are bad, but they do carry a lot of hidden fees.  You will need to have money up front to get a secured card.  Your credit limit is set by the amount of money you set aside in that bank's savings account.  Many banks offer a secured card starting at a minimum of $100 but several banks require a minimum of up to $500.

On top of that, there may be application fees and an annual fee that you pay up front.  Unless you have that money set aside to make a the required deposit into a savings account and pay the fees, it won't be worth trying to apply.

If you do apply for a secured card, look for the cards that can turn into an unsecured card after a certain amount of time and will increase your credit limit.  These will be the most helpful.

Capital one offers the best secured credit card option for people who need to rebuild bad credit,  At a minimum range deposit of $49 (if you qualify) you can start a $200 credit line. There is also a $29 anaual fee, but this is by far the cheapest secured credit card available. If you have no other options and need to rebuild your credit this is one way to start, and your $49 deposit fee is fully refundable when you close out the card, so its a nice way to get your credit score going again when all options are exhausted.

Secured cards are for credit rookies with cash & want a jump start on credit limits

what about orchard bank visa card? is it like capital one? 

I like Wells Fargo secure credit card, it has helped me raise my score almost 100 points by adding a new type of account to my credit report. Also I can start show on time payments again after defulting on 3 cards almost 4 years ago.