What is a Secured Credit Card and Who Should Get One?
For many people in the USA, getting approved for a traditional credit card is difficult without an established credit history. This is where a secured credit card comes in. It is a powerful financial tool designed specifically to help beginners and those with poor credit scores build or rebuild their financial standing in 2026. How a Secured Credit Card Works Unlike a standard credit card, a secured card requires a security deposit , which usually serves as your credit limit. Deposit: If you deposit $300, your credit limit will typically be $300. Collateral: The deposit acts as a safety net for the bank in case you miss payments. Reporting: Most banks report your activity to the major credit bureaus, helping you build your score. Who Should Get a Secured Credit Card? Students and Beginners: If you have never had a credit card before, this is an easy way to get started. People Rebuilding Credit: If you have had past financial mistakes, this card helps you prove to lenders th...
