Using secured credit cards to repair a bad credit history

Wednesday, December 22nd, 2010
Updated: December 22nd, 2010
The content is accurate at the time of publication and is subject to change.

There are a lot of people who have seen financial hardships in recent times. Such people would have seen their credit scores drop and also their credit history turning bad. But there are also numerous examples of people who have improved their credit score or turned their bad credit score into a good one by using a secured card. Secured credit card provides assistance to people who have, in the past, ruined their credit history due to bad spending habits and now find it hard to get any sort of credit. There are numerous financial institutions which are offering secured credit cards.

Secured credit cards work very similar to the way unsecured credit cards work. However, the only difference is that secured credit cards will need a deposit amount in the bank account which will ensure that the lender is secure in case of default by the customer. There are many credit card customers who have used cards like this to being make purchases that are affordable and can be paid off from month to month. When this habit is practiced regularly and successfully for quite some time, the users of secured credit cards have been able to build a good credit history, also witnessing a rise in their credit score over a period of time. This will also open doors for them to move on to better deals if they need.

Financial advisors at this point have a word of caution against those individuals who use secured credit cards, who are of the idea that it will definitely fix their poor credit score. It is true that secured credit cards have been used by many customers to repair their bad credit score. But there is no guarantee that it will always happen and proper financial practices have to be implemented by the customer in order to repair a bad credit score. The secured credit cards are never meant to carry a balance and for those individuals who do not have wise spending habits, a secured card could in fact result in the debt getting out of control and beyond manageable proportions.

Card holders who are using secured credit cards in the right way have been making affordable purchases on the card month after month and by proper budgeting have been paying the debt off too. Secured credit cards in the past have led to unsecured credit card offers too.

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 Secured Credit Card News

Sunday, March 1st, 2020

Secured credit cards are credit cards that are supported by a money deposit of about $200-$1000 paid upfront. This amount is used as collateral for issuers and usually equals to the future credit line. This type of card can be extremely welcome if you are a beginner at credit issues or for some reason have to rebuild your credit almost from scratch.

Sunday, February 9th, 2020

Are you new to finance and want to find out what to start building your credit history with? Or maybe you’ve had hard times under your belt and now have to rebuild your credit score bit by bit? Then, probably you’ve already stumbled on some information about secured credit cards and prepaid cards.

Thursday, October 25th, 2018

Secured credit cards have been increasing in popularity over the last several years, and for good reason. For folks who have no credit history, limited credit history, or a poor credit score, a secured card offers a path toward financial wellness and a healthy credit score.

Wednesday, December 6th, 2017

Anyone with a credit card, debit card, prepaid card, or secured credit card will be able to pay for transit tickets in London and other major cities without having to deal with paper tickets or cash, thanks to innovative new payment solutions from Visa.

Wednesday, July 5th, 2017

Young people often get a bad reputation for being irresponsible with money, but a recent survey shows that in fact, today’s young folks may actually be savvier and more responsible with credit than their parents.

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.