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Bankrate has partnerships with issuers including, but not limited to, American Express, Bank of America, Capital One, Chase, Citi and Discover. SHARE: FG Trade/E+/Getty Images February 10, 2022 Checkmark Bankrate logo How is this page expert verified? At Bankrate, we take the accuracy of our content seriously. "Expert verified" means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced. Their reviews hold us accountable for publishing high-quality and trustworthy content. Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Highlights Investigative and political journalism Delivered on-the-ground news Newscast Production Experience Dignelly is an Associate Editor for CreditCards.com where she is dedicated to updating information for readers. She obtained her master’s degree in broadcast and digital journalism from Syracuse University in New York. During that period, she gained a variety of experience from her time interning with Tampa Bay’s NBC News affiliate station WFLA-TV News Channel 8 and their Spanish digital news outlet Tampa Hoy. Dignelly’s interest in finance has brought her here to join our news and advice team from Puerto Rico. She is committed to keeping you informed and updated with the latest financial news and information. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer. Bankrate logo The Bankrate promise
At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity, this post may contain references to products from our partners. Here's an explanation for how we make money. The content on this page is accurate as of the posting date; however, some of the offers mentioned may have expired. Terms apply to the offers listed on this page. Any opinions, analyses, reviews or recommendations expressed in this article are those of the author’s alone, and have not been reviewed, approved or otherwise endorsed by any card issuer. Bankrate logo The Bankrate promise
At Bankrate, we have a mission to demystify the credit cards industry — regardless or where you are in your journey — and make it one you can navigate with confidence. Our team is full of a diverse range of experts from credit card pros to data analysts and, most importantly, people who shop for credit cards just like you. With this combination of expertise and perspectives, we keep close tabs on the credit card industry year-round to: Meet you wherever you are in your credit card journey to guide your information search and help you understand your options. Consistently provide up-to-date, reliable market information so you're well-equipped to make confident decisions. Reduce industry jargon so you get the clearest form of information possible, so you can make the right decision for you. At Bankrate, we focus on the points consumers care about most: rewards, welcome offers and bonuses, APR, and overall customer experience. Any issuers discussed on our site are vetted based on the value they provide to consumers at each of these levels. At each step of the way, we fact-check ourselves to prioritize accuracy so we can continue to be here for your every next. Bankrate logo Editorial integrity
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You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey. Bankrate follows a strict , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers. We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money. Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and, services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range can also impact how and where products appear on this site. While we strive to provide a wide range offers, Bankrate does not include information about every financial or credit product or service. If you have bad credit, you’re probably looking for ways to build your credit as quickly as possible. Using a secured credit card to build credit is something to consider. Secured credit cards provide you with a small line of credit in exchange for an affordable, refundable . Secured cards are one of the best ways to build credit if you have a low credit score or a limited credit history. But you have to know how to use a secured credit card to build credit if you want to get the most out of these credit-boosting tools. How do you build credit using a secured card—and how quickly can you do it? Let’s take a look at , how you can use one to raise your credit score and how to choose the best secured credit card for your financial situation. What is a secured credit card
A secured credit card offers many of the benefits and protections of a standard credit card—but you have to put down a security deposit first. Why? Well, if you have or a limited credit history, lenders might wonder if you are going to be a risky borrower. Putting down a security deposit gives your lender some protection in case you default on your credit obligations. If you manage your line of credit responsibly, you’ll get your security deposit refunded in full. How much will your security deposit be? It depends. Some secured credit cards allow you to open a line of credit after making a deposit of less than $50. However, most cards require you to match your credit line with an equivalent deposit—so if you want a $500 line of credit, for example, you’ll need to pay a $500 deposit. This is one factor to keep in mind as you decide which secured credit card is best for you. People often use secured credit cards as a way to build their credit scores. In most cases, secured cards come with and high interest rates. This makes it difficult to use secured credit cards to —and very expensive if you decide to carry a balance. How to use a secured credit card to build credit
Do secured credit cards build credit? Yes, depending on how you use them. If you want to know how to build credit with a secured card, you’re going to need to understand the fundamentals of : making on-time payments, keeping your balances low and paying off your debts. Building credit with a secured credit card is all about practicing those three habits. Use your secured card to make small everyday purchases and . Avoid maxing out your credit card, and try to you had before you took out your secured card. The more work you put into actively building your credit, the faster you’ll achieve a . How much will a secured credit card raise my score
How much will a secured credit card raise your score? While we can’t say for sure how much your credit score might improve, we can tell you that using a secured card can boost your credit score relatively quickly—think “under six months”—especially if you focus on : If you want to start building credit with a secured card, . Maintain a good credit utilization ratio by keeping your debts low and paying off your balances. Avoid unnecessary that can lower your credit score. As your credit improves, so will your length of credit history—and as you become eligible for more lines of credit, you’ll be able to build the credit mix that might someday help you earn a . Best secured credit cards to build credit
What’s the to build credit? It depends on what you’re hoping your secured credit card can do for you. Do you want to earn rewards on every purchase? Are you looking for a credit card that has no minimum credit score requirement? Would you like your account to be automatically reviewed for a higher credit limit? You should also make sure that any secured credit card you choose allows you to put down a security deposit you can afford—because there’s no good reason to go into debt to take out a secured credit card. Which secured credit card is right for you? Take a look at our complete list of best secured credit cards to learn more about what’s available. We’ve highlighted a few of our favorites below: Capital One Platinum Secured Credit Card Best secured card for building credit
Want to keep your security deposit as low as possible? The lets you establish a line of credit with a deposit as low as $49. Your credit limit is likely to be very low, compared to other secured cards—but you don’t need a lot of credit to build your credit score. You just need to use the credit you have responsibly, and Capital One’s CreditWise app can help you learn how your day-to-day spending decisions affect your credit score. After six months, Capital One reviews your account to evaluate your qualifications for a higher credit limit. Open Sky Secured Visa Credit Card Best secured card with no minimum credit score requirement
Some credit card issuers will turn people down for secured cards if their credit scores are too low. The has no minimum score requirement, making it an excellent card for people with no credit or very poor credit. In addition to putting down a security deposit of at least $200, you’ll need to pay an annual fee of $35 to access this card—so keep that in mind before you apply. Discover it Secured Credit Card Best secured card with cash back rewards
Want to earn rewards as you build your credit? The offers 2 percent cash back on gas stations and restaurants (for up to $1,000 in combined spending per quarter, then 1 percent) and 1 percent on all other purchases. New cardholders can take advantage of , which matches all of the cash back you earn during your first year. Like the Open Sky Secured Visa, you need a minimum $200 security deposit to access this card—but you won’t have to pay an annual fee, and you’ll earn cash back on everything you buy. When to upgrade to an unsecured credit card
When should you switch from a ? In some cases, your credit card issuer will automatically transition you to an unsecured credit card after you’ve proven you can use your secured credit card responsibly. If you have the Discover it Secured Credit Card, for example, it’s possible to graduate to an unsecured Discover card with just seven months of good payment behavior. When a credit issuer upgrades you from a secured card to an unsecured card, your security deposit will be refunded—and you may even receive a higher line of credit. In other cases, you’ll need to close out your secured credit card before you can receive your security deposit back and you may need to apply for an unsecured credit card on your own. before you apply for a secured credit card to learn exactly what the rules are regarding security deposit refunds and graduating to an unsecured card. If your credit card issuer doesn’t automatically consider you for an unsecured credit card, how do you know when it’s time to apply for one on your own? Start by getting at least six months of positive credit habits under your belt. on a regular basis to ensure it’s moving in the right direction and to make sure all of the information is accurate. If your credit history has improved, it might be worth applying for one of the —or, depending on your new credit score, one of the . The bottom line
Building credit with a secured credit card is an important step in getting your finances back on track. Use these tips to help you establish a positive credit history, transition to an unsecured credit card and work your way toward . SHARE: Nicole Dieker has been a full-time freelance writer since 2012—and a personal finance enthusiast since 2004, when she graduated from college and, looking for financial guidance, found a battered copy of Your Money or Your Life at the public library. In addition to writing for Bankrate, her work has appeared on CreditCards.com, Vox, Lifehacker, Popular Science, The Penny Hoarder, The Simple Dollar and NBC News. Dieker spent five years as writer and editor for The Billfold, a personal finance blog where people had honest conversations about money. Dieker also teaches writing, freelancing and publishing classes and works one-on-one with authors as a developmental editor and copyeditor. Highlights Investigative and political journalism Delivered on-the-ground news Newscast Production Experience Dignelly is an Associate Editor for CreditCards.com where she is dedicated to updating information for readers. She obtained her master’s degree in broadcast and digital journalism from Syracuse University in New York. During that period, she gained a variety of experience from her time interning with Tampa Bay’s NBC News affiliate station WFLA-TV News Channel 8 and their Spanish digital news outlet Tampa Hoy. Dignelly’s interest in finance has brought her here to join our news and advice team from Puerto Rico. She is committed to keeping you informed and updated with the latest financial news and information. Cathleen's stories on design, travel and business have appeared in dozens of publications including the Washington Post, Town & Country, Wall Street Journal, Marie Claire, Fodor’s Travel, Departures and The Writer.