It’s always good to have a credit card handy as you accumulate many financial responsibilities, and if you have uncertainties as to which credit card you should get, you may want to look at a secured credit card. These credit cards are usually among the easiest to be approved for because they actually are backed by personal guarantees and can be used even by people with bad or no credit. There are a few catches that come with these cards that you need to look out for, and in some cases you might actually have better options. But for the most part, a secured credit card can be a very good thing to get.

How A Secured Credit Card Is Secured

A secured credit card is secured simply by a deposit of usually a few hundred dollars that you make with the credit card provider. They’ll hold your deposit for several months usually, and if you’ve kept your credit card balance paid off during that period, you’ll get your deposit back. If you end up defaulting, your credit card account will usually be closed and you’ll forfeit that deposit. But because you’ve paid the deposit, usually you won’t be sent to collections.

The Benefits To Secured Credit Cards

Not only are secured credit cards usually easy to get, but when you get one you now have the opportunity to build your credit and demonstrate to other lenders that your debt is under control. While your credit score may not go up to 700 right away, getting it higher will become much easier over time. In fact, many secured credit card providers will give you a new card that has a higher credit limit once you’ve been paying off your original secured card consistently. So even though you’ll have some limitations initially on what you can do with a secured credit card, those will usually go away within several months.

Downsides To Secured Credit Cards

While many secured credit card providers will allow your deposit to be any amount even as low as $100, some require higher deposits to get started. And since most people who apply for secured credit cards are either bad or no credit consumers, they could charge things like annual fees and higher interest rates. Generally speaking though, secured credit cards will have less total fees than unsecured cards for people with bad credit, so if you do have a few hundred dollars to put down upfront, you may be better off applying for a secured credit card than an unsecured one.

Personal Finance Review Sites

If you’re looking for suggestions for new credit cards or improving your credit score, there’s a few websites you may want to have bookmarked. These websites connect you to budgeting and savings tools and even reputable lenders:

  1. FundFirstCapital.com

This place has many links to credit cards and personal loans, and you can even find professionals including structured settlement buyers and tax attorneys. This website is highly ranked because it’s very comprehensive in the services it offers. And if you want extra advice on eliminating debt, you can’t go wrong here.

  1. MoneyUnder30.com

While not nearly as comprehensive as FundFirstCapital, MoneyUnder30.com still has much of the same kinds of tips and product reviews. In addition to being directed to loans and credit cards, you’ll also find out information about starting investment accounts and finding the right advisors. This website’s blog has a lot of easy to read articles.

  1. Bankrate.com

This website is a little more specifically aimed at banking services and loan information. But since banking is a key part of personal finance, this website is a must see. They especially have a lot of information on auto loans and paying off your vehicle.