The security credit card is a card type designed for people with either a bad or no credit history. A person’s credit history turns bad when there had been records shown on his credit report about loan or credit card bills which had not been repaid or a declaration of bankruptcy while people with no credit history are those who had never been a borrower before hence no existing credit history record.

People who fall on either two of the categories are worried that no loans or credit cards will be granted to them since credit card companies and lenders have stricter rules nowadays.

Credit reports are where companies base their decision of granting approval to a person.   The figures or information that appears on the credit report determines a person’s creditworthiness; whether you have the capability of repaying debts.

With secured credit cards, people who had been in bankruptcy or who had never been a borrower before can now have the opportunity to fix things. They may not be granted a new or another regular credit card or be approved of a loan or mortgage but in time their rating will improve making them qualified for loans and cards.

The thing though about cards meant for helping people with bad or no credit history is that charges and rates are way higher. There is no easy way to success they say so be it a lesson to people with bad credit history. Proper management should be done on your finances so as not to be in the same dilemma again.

Most banks require a minimum deposit of $300 dollars while some require higher. This would not mean though that your credit limit is also $300. More often than not, it is just a percentage of the amount that you deposited. Three hundred dollars for a credit limit is so minimal especially with the process of goods nowadays so deposit more for a higher credit limit.

Please don’t misconceive your deposit to be an advanced payment. The purpose of the deposit is for banks to have a back up in case you failed to make a payment for the month. If you wish to receive your deposit in full after the given period given to you before you can change to an unsecured credit card, be a diligent payer.

With a good record, your bank could offer you an unsecured or a regular credit card after a year in most cases.

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