Do You Need A Secured Credit Card?

Secured credit cards are increasingly becoming popular among consumers and even business owners. Who should consider getting this type of credit card? What are the benefits of using a secured credit card? And do you need one too? Let’s consider each of these questions in this article.

Who Should Get A Secured Credit Card?
No credit history. Some people have yet to establish personal or business credit history. If you have no credit history, you may find it difficult to apply for a regular credit card since most issuers use credit history to evaluate credit card applications. In this case, a secured credit card is an option.

Bad credit history. If you’ve had a problem with bad credit and want to regain a good credit standing, you can start by getting a secured credit card.  Since approval is not based on the person’s credit rating, anyone can easily obtain a secured credit card even with bad credit. More importantly, this credit card can be used to repair bad credit.

[Article: Secured Credit Cards: Repairing Bad Credit]

The Benefits of a Secured Credit Card
Control your spending. If you have trouble keeping your spending in check, a secured credit card can be a great tool for you. Since your credit line is limited to the amount of security you submitted, the cardholder is more likely to limit his/her spending.


Build/rebuild good credit. Whether you have no credit history or a bad credit history, a secured credit card can be your stepping stone towards a good credit standing. The key is using the card regularly and submitting payments on time.

Easy and quick processing. It doesn’t take long to acquire a secured credit card. As long as you can submit the required amount of security deposit, you can expect to receive your card by mail within 5 banking days.

Do You Need One?
A secured credit card may have a higher rate of interest so if you can qualify for a regular credit card, then obviously you don’t need this type of card. The credit limit is also dependent on the security deposit so if you need a higher credit line, then be prepared to match it with your cash deposit. The deposit can range anywhere from $200 to $500, depending on the issuer.

However, if you need to establish or repair your personal credit, then you may consider getting a secured credit card. Remember to use it wisely and after a few months to a year of consistent payments don’t forget to request your issuer for an upgrade to an unsecured account.

About the AuthorTara Tiemann is a credit analyst for which has been a resource site for people who want to live debt free. If you are on a budget using prepaid debit cards,prepaid credit cards and prepaid cell phone service can save you big money!

About Liz Roberts

Liz Roberts is the new credit specialist for Go-Prepaid. If you are on a budget, we can get you discounted cell phone service from Sprint, Verizon and T-Mobile! NO CREDIT CHECK ! Using a prepaid services can save you a TON of money! Follow our blog to find out how!

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