What Are 2 Reasons Someone Might Want to Open a Secured Credit Card?
People might want to open a secured credit card to build or rebuild their credit and to access credit despite having limited or bad credit history.
by Sai V
Updated Oct 25, 2023
Article continues below advertisement
On This Page
What Are 2 Reasons Someone Might Want to Open a Secured Credit Card?
Here are the two primary reasons someone might consider opening a secured credit card:
- Limited or Bad Credit History: Secured credit cards are ideal for individuals with limited or bad credit histories. By providing a security deposit, they can access credit, fostering financial growth and stability.
- Building/Rebuilding Credit: Opening a secured credit card aids in building or rebuilding credit. Responsible usage and on-time payments demonstrate creditworthiness, paving the way for future access to unsecured credit options.
What is a Secured Credit Card?
A secured credit card is a type of credit card that requires a cash security deposit upon account opening. This deposit serves as collateral and reduces the risk for the issuer, making it accessible to individuals with bad or no credit history. Responsible use of a secured card can help build or rebuild credit over time.
Related Articles
Quiz Questions On Insurance and Risk Management - 3
403 days ago
Quiz Questions on Credit Management and Awareness
404 days ago
Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.