Are secured cards the solution for people with bad credit

Thursday, November 11th, 2010
Updated: November 11th, 2010
The content is accurate at the time of publication and is subject to change.

Individuals who have had a bad time financially would have seen their credit scores hit rock bottom. For such individuals who wish to improve their rating, secured cards seem like a good option. But do they really work for those with bad credit? Card companies have secured credit cards in order to assist someone to build good credit history and undo the damage. Borrowers may find it difficult to find lines of credit which could help their situation, but secured cards offer the credit line which could be used to rectify one`s financial situation.

Some of the banks that offer secured credit cards are Wells Fargo, Bank of America, Capital One etc, but there are many other players as well. There are other financial institutions also that help in rebuilding credit. However, there has been some indication that a few institutions have moved away from secured cards, there are still a number of reputed institutions such as credit unions which come to the rescue by offering these cards and assisting individuals to rebuild their credit history.

All types of secured credit cards would certainly require some collateral in the form of assets or cash. The collateral that is provided by the borrower acts as a security in case of non-payment and this way the bank is safe. But still the money that is deposited is not utilized by these banks like funds from a debit card. But the money would certainly be utilized in case of non-payment by the card holder.

However, analysts suggest that those seeking to repair the damage due to bad credit should be certain that they are in a position to make charges on the cards but should be doubly sure that they are able to pay off the balance each month and not carry any balance forward, as these cards are not designed to carry forward balances. In order to maintain these cardholders have to maintain discipline and make purchases that are not only affordable but be prompt in their payments each month and avail the maximum benefits from the secured credit card.

However, just obtaining a secured credit card will not solve the problem unless and until a sincere effort is made by the borrower to make amends and there is no guarantee unless one is smart with the use of the card. Simple financial planning, saving, proper budgeting, and timely repayment schedules would be required (by the borrower) to see the benefits of the card and use it to its potential.

All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.

Latest Bad Credit Card News

Friday, June 28th, 2019

The third quarter is just around the corner. And Amalgamated Bank of Chicago is ready with an attractive forthcoming rewards category that will appeal to all travel lovers. It will be recalled that ABOC credit cards come with 1x ABOC Bonus Rewards Points on all purchases. But their no annual fee Platinum Rewards Mastercard® and […]

Sunday, March 3rd, 2019

Bad credit history sounds like a sentence for many people. But is it so? Let’s consider the issue of bad credit in more detail. Our life is unpredictable, and we never know what can happen. We are not insured against anything. However, it is important to remember that there is always a way out or […]

Friday, October 12th, 2018

It’s the American dream—but it can turn into a nightmare for your credit score if you’re not careful. Financial experts at Take Charge America warn that buying a home when you’re not truly prepared for the responsibility you’re taking on can lead to financial stress and a lowered credit score.

Thursday, May 24th, 2018

Having poor – or nonexistent – credit history can be a big problem when you apply for a loan, an apartment, a credit card, or even a job. Because many people struggle with this issue, the government is stepping in to offer advice on building, improving, and protecting credit history.

Wednesday, January 17th, 2018

At the beginning of the year, many people make resolutions about getting in shape. Starting diets, doing yoga, and going to the gym are the prevailing trends as a new year begins. However, this year those resolutions have been edged out in popularity by a different goal: getting finances in shape.

Best Credit Offer
First Access Visa® Solid Black Credit Card
Check off the cards you want to compare. Then click the Compare link to go to the comparison table.
Consumer Rating: 4 / 5
Horizon Card Services Horizon Gold Credit Card
Copyright © 2001-2019 All Rights Reserved.

*See the credit card's terms and conditions on the online application page. Note that this website may be compensated by credit card issuers when the visitor applies for a card through the links on this website. We do our best to maintain all information accurate and up to date. However, we do not warrant the credit card information won't change. Click the "Apply Online" button and review the current info on the secure credit card terms page.

Information in these articles is brought to you by Banks, issuers, and credit card companies mentioned in the articles do not endorse or guarantee, and are not responsible for, the contents of the articles.

The webpage is a free service and an information resource for credit cards and financial products and services available to eligible United States consumers. does not offer any warranties and is not a direct service. There are no guarantees for approval or offers when applying for a credit card. Please refer to the application if you would like more information on each credit card. When you click "Apply" for a particular credit card, please take the time to review the terms and conditions of the product/service at the issuer's website. All logos on the website are property of their respective owners.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer. Opinions expressed here are the author's alone, not those of the credit card issuer, and have not been reviewed, approved or otherwise endorsed by the credit card issuer. Reasonable efforts are made to present accurate info, however all info is presented without warranty. Consult a card's issuing bank for terms & conditions. makes every effort to keep information up to date and accurate. However, the information regularly changes and is presented without warranty. Therefore, we strongly recommend all our readers to visit the credit card application page by clicking "Apply Online!" button to review the detailed credit card's terms and conditions. Note that may be compensated by the credit card issuers when the readers apply for a credit card through this site. is an independent, advertising-supported website which receives compensation from the credit card issuers and companies whose offers appear on the site. Compensation may impact how and where products appear on our site, including, for example, the order in which they may appear on the site pages. does not review or list all available financial or credit offers.

Disclosure: Not an access card.

You've successfully subscribed!

Please specify the following:All these fields are optional

Thank you for providing this information! We will make sure our letters are useful for You.

User Generated Content Disclaimer: These responses are not provided or commissioned by the bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by the bank advertiser. It is not the bank advertiser's responsibility to ensure all posts and/or questions are answered.