Secured Credit Cards
01.How Secured Cards Work
Because traditional credit cards require a credit history, your best starting point is a secured credit card. You give the bank a cash deposit (for example, $200 or $500), and that deposit becomes your credit limit. If you fail to pay, the bank keeps the deposit.
02.Building Real History
A secured card works exactly like a regular credit card. You make small purchases, receive a monthly bill, and pay it in full. The bank reports your positive payment history to the three credit bureaus, building your score.
03.Graduating to Unsecured
After 8 to 12 months of responsible use, many banks will automatically upgrade you to an unsecured credit card and refund your security deposit. It is a safe and reliable path to building credit.