What Are 2 Reasons Someone Might Want to Open a Secured Credit Card?
People might want to open a secured credit card to build or rebuild their credit and to access credit despite having limited or bad credit history.
by Sai V
Published Oct 25, 2023 | Updated Oct 25, 2023 | ๐ 1 min read
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What Are 2 Reasons Someone Might Want to Open a Secured Credit Card?
Here are the two primary reasons someone might consider opening a secured credit card:
- Limited or Bad Credit History: Secured credit cards are ideal for individuals with limited or bad credit histories. By providing a security deposit, they can access credit, fostering financial growth and stability.
- Building/Rebuilding Credit: Opening a secured credit card aids in building or rebuilding credit. Responsible usage and on-time payments demonstrate creditworthiness, paving the way for future access to unsecured credit options.
What is a Secured Credit Card?
A secured credit card is a type of credit card that requires a cash security deposit upon account opening. This deposit serves as collateral and reduces the risk for the issuer, making it accessible to individuals with bad or no credit history. Responsible use of a secured card can help build or rebuild credit over time.
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