Pros and Cons of Secured Credit Cards

Credit Optimal

Secured credit cards are an incredible way to establish your credit history of you have none or if you have prior credit problems like delinquencies, bankruptcy, or charged-off accounts.

Whether you're seeking to build your financial credit history from scratch or trying to build a good credit report, a secured credit card has its associated perks and drawbacks.

According to a report retrieved from the Federal Reserve Bank of Philadelphia in 2016, a client having a secured credit card account running for two years is associated with a 24-point surge in their meridian credit scores.

However, some secured credit cards could have expensive interest rates, a crazy annual percentage rate (APR), or no provision for a path to a secured credit card.

Considering the associated perks and downsides, we've compiled what you need to know about a secured credit card.