About Secured Credit Cards

A secured credit card is essentially a kind of credit card obtained by the cardholder depositing somewhere in the region of 100%-200% of the total amount of credit that’s wanted on the card. So say you put you down £1000 on the card, you’ll have £500-£1000 worth of credit.

As with a regular card, you are expected to make payments, but if you are to neglect a payment for whatever reason, then whoever issued the card is able to claim the cost from the deposit originally put down for the card.

The main advantage in secured credit cards (and this is the good bit) is that it allows for a person with poor credit history – or even a person with no credit history – to build up a positive credit history of their own. This is possible because secured credit card companies will all report to major credit bureaus, so someone with a good history on their secured credit card will in turn earn good credit history with the major credit bureaus.

So there you have it, positive proof that having a secured credit card is good for your credit history, particularly if you are in the unfortunate position of either having no credit history whatsoever, or that it is simply a case of having no credit history of your own, but need to build some up.