If you have a limited credit history or a low credit score, getting approved for a credit card can be a challenge. There is, however, an entire category of credit cards designed for people in this situation: secured credit cards, which can actually help you build or repair your credit score.
A secured credit card (or any kind of secured asset) simply means that it’s backed by something else of value. In the case of a secured credit card, it’s your cash — in the form of a security deposit — which is used to pay your bill if you default. When you put cash up in advance, it’s easier for an issuer to overlook a checkered financial track record and grant you a secured credit card with a modest credit limit. Read on to learn more.