Credit Cards

A secured credit card works just like a regular credit card with one major difference: a secured card requires a security deposit and your credit limit matches the amount of the deposit you put down. The minimum deposit is $200, but you can easily increase your credit limit by adding to the initial amount you deposited at any time. This way, you control your credit limit by deciding how much or how little you want to deposit.

Secured credit cards are reported to the three major credit bureaus just like a regular credit card. This makes them a great option for people trying to build their credit history (i.e. people with no or limited credit history) or people with bad credit who need to repair their credit score. Your deposit acts as collateral, so you’re guaranteed to be approved no matter what your situation.

Since it’s reported to the major credit bureaus, you want to be sure that the activity on your secured card reflects positively on your credit score. To do this, you want to keep a low balance-to-limit ratio and be sure to make your payments on time. It’s also important to note that you don’t actually have to use your secured card for it to help your credit score. If there is no balance on the card, you will be reported as ‘in good standing’ to the credit bureaus.

You can get a secured card by applying for one at your bank, or comparing and applying for a secured credit card online. Most secured cards have annual fees, but some have additional fees including insurance policy and set-up fees, so it’s important to shop around to get the best deal.

The minimum deposit needed to open a secured credit card account is $200. However, with a secured card, your security deposit represents the amount of credit that will be extended to you, so the higher the deposit the higher the credit line. The activity on a secured card is reported to the major credit bureaus the same way the activity on an unsecured credit card is reported. Given that lenders like to see that you have been extended long lines of credit, a large deposit on a secured account looks favorable on your credit report. Plus, if you plan to make purchases with the card, a larger deposit will get you more usage.

If all you have right now is $200, then go ahead and apply for your secured card now. You can add more money to your deposit account, thereby increasing your credit line, any time you like.

You don’t need a co-applicant to get approved for a secured credit card. A secured credit card will help you build credit history with low risk to both you and your lender. The only difference between a secured card and a regular credit card is that with a secured card, your credit limit matches the amount of the deposit you put down – this usually starts around $200.00. This deposit acts as your collateral. Your credit limit can be as little or as much as you choose – you can increase your limit by simply adding more to the amount that you initially deposited. The great thing about a secured credit card is that it can act as a personal savings account while building your credit history at the same time.

Yes. If you want a 100 percent guarantee that you will be approved, apply for a secured credit card. A secured credit card will help you build credit history with low risk to you. Secured credit cards work just like regular credit cards and are also reported to the three major credit bureaus. The only difference between a secured card and a regular credit card is that a secured card requires a security deposit and your credit limit matches the amount of the deposit you put down – the minimum is $200. Your credit limit can be as little or as much as you choose – you can increase your limit by simply adding more to the amount that you initially deposited. The great thing about a secured credit card is that it can act as a personal savings account while building your credit history at the same time.

If you don’t have a credit history and want a 100 percent guarantee that you will be approved, apply for a secured credit card. A secured credit card will help you build your credit history with low risk to you. Secured credit cards work just like regular credit cards and are reported to the three major credit bureaus. The only difference between a secured card and a regular credit card is that with a secured card, your credit limit matches the amount of the deposit you put down – this usually starts around $200.00. Your credit limit can be as little or as much as you choose – you can increase your limit by simply adding more to the amount that you initially deposited. The great thing about a secured credit card is that it can act as a personal savings account while building your credit history at the same time.

Yes. You most certainly can. Transactionally, prepaid cards work the same as debit cards or credit cards. However, if you are planning on using a prepaid card to cover the expense of a subscription that requires a monthly payment, be sure that you determine the date on which the payment will be deducted from your prepaid account each month. You will need to ensure that you have enough money on your prepaid card, on or before the date that the payment for your subscription is due. Otherwise, your payment will be declined and your subscription will likely fall into jeopardy.

In most cases, no. Some car rental companies accept debit cards, but beware they are likely to put a hold on your card that is much higher than the price of the car rental. With a debit card this means less access to cash for you. If you need to rent a car and don’t have a credit card, you can apply for a secured card if you have enough lead time before your trip. Secured credit cards work just like regular credit cards and are reported to the three major credit bureaus. What separates them from regular credit cards is that they require a security deposit – usually starting at around $200. If you have a debit card, but don’t have enough time to apply for a secured credit card, be sure to contact the rental company to find out how much of a hold they require. Then be sure the available balance on your debit card account is enough to cover the rental reservation.

There are a few things that separate debit cards from credit cards. A debit card is linked to your personal bank account, and as soon as you make a purchase with a debit card the money is immediately withdrawn from the account associated with it. There is no bill at the end of the month. When you make a purchase with a credit card, you are simply lowering your amount of available credit, and you will receive a bill at the end of the month for which you are responsible. Lastly, the activity on a credit card shows up on your credit report, but the activity on debit card does not.

Prepaid cards are a good option if you don’t have a personal checking account. You can build up your available balance on your prepaid card simply by making cash deposits at most major grocery stores and gas stations. A prepaid card works a lot like a debit card - once the money is gone, it’s gone. A prepaid card will not allow you to charge over the available balance and there are no bills or interest fees.

You can use a prepaid card to buy things off of the Internet if you don’t have a credit card. With a prepaid card, you will not receive an itemized bill, unless you request one, and the account associated with the card will not show up on your credit report. You can build up your available balance on your prepaid card simply by making cash deposits at most major grocery stores and gas stations. A prepaid card works a lot like a debit card - once the money is gone, it’s gone. A prepaid card will not allow you to charge over the available balance and there are no bills or interest fees.

Debit cards are as widely accepted as credit cards and transactionally, they work in a similar way. However, there are a few things that separate debit cards from credit cards. A debit card is linked to your personal bank account. As soon as you make a purchase with a debit card, the money is immediately withdrawn from the account associated with it. There is no bill at the end of the month. When you make a purchase with a credit card, you are simply lowering your amount of available credit, and you will receive a bill at the end of the month for which you are responsible. Lastly, the activity on a credit card shows up on your credit report, but the activity on debit card does not.

If you don’t want to worry about carrying a lot of cash around with you, a debit card is a great option. Alternatively, prepaid cards are an option if you don’t have a personal checking account. You can build up your available balance on your prepaid card simply by making cash deposits at most major grocery stores and gas stations. A prepaid card works a lot like a debit card - once the money is gone, it’s gone. A prepaid card will not allow you to charge over the available balance and there are no bills or interest fees.