Secured credit cards are similar to prepaid cards except that they actually build credit history. A security deposit, which is usually between $250 - 5,000 is required to open a line of credit. The amount of the security deposit is usually the amount of the credit line that is extended to you. Secured credit cards are ideal for those that need to repair their credit history or have never had a chance to establish one. In addition to the required security deposit, secured credit cards usually have an annual fee and additional fees may apply.
Those considering getting a secured credit card need to consider if it is feasible to