Why Do You Need a Secured Credit Card?

You need a plastic to make a flight or hotel reservation, or to rent a car, even if you plan to pay cash. Sane use of a credit card helps you build a good credit rating, too, marking you as mortgage-worthy.

But individuals who need to repair a poor credit history may not qualify for a standard plastic. For them, a secured credit card may be the only way to establish their credit. So, if you one of them, you should apply for https://effectify.com/credit-cards/secured-credit-cards/  as applying online is the most convenient option.

What is a Secured Credit Card?

It is a card designed to check your credibility and responsibility. In order to apply for such a card you need to deposit a specified amount of funds – afterwards you get a credit limit which equals to the sum of your deposit.

What’s the point? The point is you have to use this card constantly and make sure you make payments to credit card on time in order to improve your credibility. And in case you do not manage to serve the debt the bank will deduct the specified amount (the sum you did not manage to pay)from your account and thus your reputation will be spoilt.

However, if you manage to honor your bills on time the bank may even increase your credit limit and your account to issue for you an unsecured credit card which means you are going to have your deposit back.

What is the Difference Between Secured and Unsecured Card?

Anyone can get a secured credit card – as the amount of funds you can use are covered by the deposit. However, the unsecured credit card can only be granted to someone with a good credit history – and the better is the credit history. the more are the chances you will get larger credit limit on better terms.

How Can the Secured Card Be Used

You can know more on how secured credit card works here. However, here is the brief list of actions you can perform with the card once it is activated:

  • Make online and offline purchases
  • Improve one’s credibility to get a loan or a credit limit on the best possible terms
  • Upgrade an account in case of proper usage of card


If you want to have an ability to take loans or restore your borrower’s reputations applying for such a credit line would be the best idea. Once you manage to show yourself as a reliable customer banks would be glad to offer you better terms.

You only should be aware that there is a risk for you to lose a deposit in case of inappropriate dates of payment made.


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