Rebuilding Bad Credit with a Secured Credit Card

Wednesday, June 22nd, 2022
Updated: June 22nd, 2022
The content is accurate at the time of publication and is subject to change.

If you have less than a perfect credit, a limited credit history, or recent derogatory marks on your credit report, you may have trouble applying for many of the credit card options currently available on the market. But there is another way to prove that you can handle credit responsibly: a secured credit card. Since collateral protects the issuer from losing money, secured cards are easier to get for people with bad credit or no credit at all.

Each secured credit card has its own minimum and maximum credit limits, usually ranging from a minimum initial deposit of a few hundred dollars to several thousand dollars, depending on the card limit and the amount of deposit you are willing to make. After you apply for a secured credit card and get approved, be sure to provide a security deposit.

There are also secured credit cards that offer an opportunity to increase the initial credit limit without additional deposit. The Merrick Bank Double Your Line® Secured Credit Card, for example, gives a chance to double the credit line in as little as seven months after opening an account. During the first seven months from account opening, cardholders need to use their card and make at least the minimum payment on time every month. After that, cardholders may receive a double credit line increase automatically if they qualify.

If you’re hoping to use a secured credit card to improve your credit score, it’s important to follow the general rules below.

Pay your bills on time
Making your monthly payments on time is a key to building up a good credit profile. The best secured cards will report your payments to all three major credit reporting agencies, so you can eventually graduate to more attractive terms and rewards or even better credit card options.

Set up a monthly autopay
Sometimes setting up automatic payments or signing up for payment reminders can help you stay on track for a stable credit history. With autopay, you can set up a payment to make just the minimum, though it’s better to pay off the full amount each month.

Keep your credit utilization low
Another general advice is to keep your credit utilization, the amount of your available credit that you use, under 30 percent. Once lenders can see you are able to handle a secured credit card without overspending or missing payments, they may increase your credit line or even offer you an unsecured credit card.

Keep credit accounts open
The overall length of your credit history will not change when you get a secured card, unless you have no credit history at all. However, the older the account in your credit report, the better your score, provided your payment history and credit utilization are good.

Bottom line
Summing it up, secured credit cards can be the answer to rebuilding your credit if used in the right way. Make sure to keep a close eye on your credit reports from all three major credit bureaus to ensure consistency and accuracy as you work to build your credit scores. And while rebuilding your credit isn’t an overnight process, these small tips will help to make a strong contribution to the common case.

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

Wednesday, December 27th, 2023

Credit cards allow you to pay for everyday or large purchases and have a small window to pay them off. All purchases made during the billing period of 28 to 31 days are added to your statement balance. After the end of each billing cycle, you receive a statement with your total balance owed and […]

Monday, February 7th, 2022

On the threshold of the most romantic holiday, WalletHub published the results of the so-called Valentine’s Day Spending Survey. 1,000 men and women from across the U.S. participated in the poll. The questions concerned not only the expenses and expectations before February 14, but also how the financial situation may affect a relationship. The most […]

Sunday, June 28th, 2020

The numbers of co-branded credit cards have grown again. It seems that any more or less large company now strives to launch its own credit or at least debit card. Just remember the Apple Card. This time it’s Verizon’s turn. Starting today, June 26, its new Verizon Visa Card is officially released and available for […]

Thursday, January 23rd, 2020

As a new online Bankrate survey of almost 2,5 thousand respondents shows, 84% of Americans face financial product denials. The bigger part of millennials (22-36 years old), namely 58%, was rejected for a credit card or another credit product at least once. The reason is their bad credit score.

Saturday, November 30th, 2019

People are seriously worried about the security of their bank accounts due to the suspicious e-mails they received this Monday. The notifications’ sender was marked as Synchrony Bank. Some of the e-mails contained information about a newly opened Amazon Credit Builder account. Others informed the customers that some transactions are proceeding between Synchrony Bank and Credit Builder accounts, and that a trial deposit had been made.

Best Credit Offer
Surge® Platinum Mastercard®
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 Group One Freedom Card
Copyright © 2001-2024 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.

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.