A secured credit card requires you to make a cash deposit as collateral for your credit line. After you make a certain number of on-time payments, you typically can convert a secured credit card to an unsecured card. A secured credit card is ideal for people who have had credit challenges in the past or for those just starting with credit, so be sure to choose a secured credit card provider that reports activity to major credit bureaus so that your on-time payments will be recorded. Note that the interest rates generally are higher with secured credit cards, so paying it off monthly should be a goal. Responsible use of a credit card will help you in the future to qualify for loans or other credit opportunities.
