Your Path to Building Credit With a Secured Credit Card
When it comes to financial stability, a secured credit card might be able to help you reach your financial goals by helping you build your credit with responsible use.1 Secured cards are often a good option for people with lower credit scores, since the security deposit you’re required to put down to open it is used to cover any unpaid balances left on the card. Plus, since most secured credit cards report to the major credit bureaus, the more you can prove your financial responsibility using them, the greater impact they will have on your overall credit.
Applying for a secured card, like the Discover it® Secured Credit Card, is similar to the application process for traditional cards, with one small difference. You fill out an application with your basic financial information and permission to perform a credit check, but you also must make a refundable security deposit to open the card if you are approved.2 The Discover it® Secured Credit Card lets you choose the deposit amount up to the approved credit line.
Once approved, you can use your secured credit card just like a traditional credit card: You’ll make purchases up to your credit limit (equal to your security deposit), and receive a monthly statement for payment. Follow the path below to learn more about secured cards and how they may be able to help you start building credit and gain access to lower interest rates and other financial products that come along with a healthy credit history.
Your Path to Building Credit with a Secured Credit Card
Building credit can be important in a variety of ways, as good credit may help make car loans and mortgages a little more affordable. One way to build your credit history and credit score is a secured credit card.
Secured credit cards typically offer a refundable deposit, allow users to earn rewards and can help you work toward eligibility for an unsecured credit card.
But what is a secured card and how do you know if it’s right for you? Take a stroll down the path below to learn more about secured credit cards to see if you’re ready to apply:
Was this article helpful?