As mentioned above, a secured credit card is exactly like any other credit card, with the sole exception being that you place a security deposit in opening it and, upon closing it in good standing, get that security deposit back. There are three main reasons to open a secured credit card: 1) to build credit no matter how bad your credit standing may be; 2) to ensure you do not spend more than you can afford; and 3) to make certain purchases that require use of a credit card.
First, if you have damaged or limited credit, a secured credit card offers the ability to build credit cheaply.
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What’s more, all secured cards report to the three major credit bureaus each month, just like unsecured cards.