#best secured credit cards
Best Secured Credit Cards for 2015
Before we make recommendations for the best secured credit cards for 2015, we want to make sure you are aware why we think secured cards are a great credit building tool.
A secured credit card is a type of card targeted mainly to high risk individuals with bad or no credit. The purpose of a secured credit card is to allow the individual access to a credit card while helping them build or rebuild their credit score.
Secured credit cards are “secured” by a bank deposit account that is owned by the cardholder. When you open a secured card, you will be required to open one of these accounts to provide collateral. Your credit limit will usually be equal to the amount you deposit, although it may be higher or lower, depending on your risk.
Secured cards differ from prepaid cards in some key ways:
- They are credit cards – not debit cards. You can get a secured card that reports to the credit bureaus. This will help build your credit score. You pay the card at the end of your billing cycle, not in advance of making purchases. It is easier to find secured credit cards with reasonable fees. However, you still need to check the fine print to avoid scams .
Recommended Features of a Secured Credit Card
We recommend shopping around for a secured credit card with these key features:
- Low or no annual fee. No monthly fees or “insurance charges”. No interest interest charges until after your billing cycle closes (typically 25 days). Reports payments to all three credit agencies monthly.