UPDATE: Check out the Top 5 Secured Credit Cards: Fall 2013!
With little or poor credit, you’re most likely going to have a difficult time getting approved for an unsecured credit card. Oddly, to demonstrate your ability to handle responsibility, you need have line of credit, which puts you in a catch-22 situation.
Using a secured credit card, you can show that you are able to manage a credit card responsibly without too much risk to the lender. Secured credit cards tend to come with annual fees and they require you to provide collateral in the form of cash deposits, which also determine the spending limits on the secured credit cards.
As you make payments toward a secured credit card, card activity is reported the credit bureaus. In time, you’ll be eligible to apply for an unsecured credit card.
There is a sea of secured credit cards available to you, but many of them charge high annual fees, impose an absurd interest rate, or both. Here are five secured credit cards that should be among your top choices if you’re looking to improve your credit history: