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Not all secured cards are created equal.

What is a secured card, and how does it work?

For instance, if your deposit is $250, your credit line will also generally be $250.

you could usually increase your limit by depositing more funds.

And because you’ve put up a deposit, there’s less risk to the issuer.

Who is a secured card best for?

Secured cards offer a good opportunity to work on your credit score throughresponsible credit card usage.

A secured credit card will still require ahard credit inquirybut comes with fewer approval requirements to better your chances.

A card issuer will want to confirm your income, and some will want to run a credit check.

Other issuers may only refund your deposit if you shut the card.

Deposits typically range from $200 and up, depending on the issuer.

Depositing more money will usually provide a greater credit limit, which could help improve your credit.

Although some issuers offer secured cards with credit limits higher than what you’re required to deposit.

Compare fees across multiple card providers and factor that into the upfront cost of getting a card.

It’s also worth noting that secured credit cards may feature higher late fees than unsecured credit cards.

Remember, the primary reason to use a secured card is to improve your credit score.

Otherwise, interest charges and late fees could wipe out the value of any rewards you earn.

Even if you’re approved for all of them, this could hurt your credit.

And the best way to do that is by creating a history of on-time payments.

Most issuers let you set up autopayments or alerts to let you know when a payment is due.

That will help ensure you never miss a credit card payment.

Remember that the point of getting a secured card is to build your credit and practice responsible financial habits.

And the best way to do that is to pay your card on time.

Deitweiller also suggests you keep a close eye on your credit limit.

That means paying your bill on time and not racking up credit card debt.

After you open and use your secured card, keep tabs on your credit score.

Each card has its own security deposit requirements.

How is my credit score calculated?

If, for example, you have no credit history, the other factors may be weighted more heavily.

How long does it take to improve my credit score?

Then it takes several additional months before the account’s activity is substantial enough to make a difference.

If you have a longer credit history with a number of issues, it will take longer.

If you have a shorter history, each month’s activity will play a much larger role.

Why do you recommend paying off the account two to three times a month?

How often should I use my secured credit card?

Swipe it two or three times a month to ensure the account is considered active.

Should I keep a secured credit card once my credit is in better shape?

We don’t ever recommend transferring a balance to a secured credit card.

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