Secured credit cards

With secured credit cards, a predetermined security deposit is needed. This deposit generally must be of equal or greater value to the amount of credit offered. Collateral can come in the form of cars, boats, jewellery, stocks or something else of value. Often, cards that help to rebuild credit come with low credit limits (£250 or so). Additional fees may apply. Be sure to read the terms and conditions. Down the road, if you use the card responsibly and pay all your bills on time you can ask for a credit increase. The extra fees and low credit lines will be worth it if a secured credit card helps you get your overall credit rating back on track.

Secured credit cards

Secured credit cards require collateral for approval. A security deposit of a predetermined amount is needed in order to secure the credit card, and the security deposit generally needs to be of equal or greater value than the credit amount. Collateral can come in the form of a car, boat, jewelry, stocks or anything else of monetary value. Secured credit cards are for people with either no credit or poor credit who are trying to build or rebuild their credit history. 

Cards that help rebuild credit often come with low credit lines (such as $250) and additional fees, such as an application fee, may apply. Be sure to read over any terms and conditions for these add-on services before applying. If you use the card responsibly and pay all your bills on time, you can ask for a credit line increase down the road. The extra fees and low credit lines will be worth it if a secured credit card helps you get your overall credit back on track. Compare cards for bad credit.