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Here’s What to Look for in a Secured Credit Card


Committing to a credit card is a big deal. If you feel some trepidation when you consider it, starting with a secured card may be a better option. These cards have features that make them somewhat safer for first-time card owners. They’re also an excellent option for those looking to build credit.

It’s a well-known vicious cycle that you need good credit to get a credit card. However, having a credit card is one of the chief ways to build credit. Secured credit cards can help you escape that cycle and begin your financial journey. In this article, you’ll learn what to look for in a secured card and which ones may work best for you.

Safe Credit Building

When choosing a secured credit card, you want something that will let you safely build credit. Safety is essential if your credit has been damaged in the past. A card that offers some level of protection to you is a huge asset. This protection can be provided in a number of ways, depending on the card.

A card like the Chime Credit Builder will allow you to set up automatic bill payments. This means you don’t need to worry about remembering to pay on time. Timely payments and total balance payments will do wonders for your credit. Choosing a card that lets you do that automatically can remove some of the stress of card ownership.

Default Protection

Automatic payments are a bonus feature. A crucial part of secured credit cards is their default protection. When setting up your card, the deposit you make ensures that you don’t default on your account. A late payment on your account will still negatively affect your credit. However, you won’t be in debt due to a missed payment on your card.

When deciding which secured card is right for you, make sure you’re only looking at cards that require a deposit. A card that doesn’t need one isn’t a secured credit card. The deposit, a hallmark feature of these cards, reduces the risk to the card issuer and lays it on the user instead. Don’t stress about the risk, though. As long as you maintain regular payments, you’ll get that money back.

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