The difference between a secured credit card and a more traditional credit card is that when you open a secured credit card account, you make a cash deposit first. That cash deposit established the credit that you are allowed. You then use the credit card as you would use an unsecured credit card. Stores and other vendors do not know the difference, and you build up a positive credit history as you use it., As with traditional cards, secured credit cards come with different sets of rules, incentives and interest rates. You will want to shop around and find the package that best suits your needs and your ability to keep up with payments.A good place to start looking for a secured credit card offer is with your own local bank or credit union. Secured credit cards may not be advertised as much as unsecured credit accounts, but if you ask, you may find a good offer.
You can find numerous offers by searching for “secured credit card” on the Internet.
 Because a secured credit card is based on the deposit that you make before using it, some companies treat your payments differently. You want to find a credit company that will report your on-time payments to the three main credit reporting agencies, TransUnion, Equifax and Experian. Making payments, but not having them get reported, does not help you build a credit history.Many secured credit card offers will make a point of saying that they “report to credit bureaus” or that they “build credit.” For example, at the advertising site CompareCards.com, you can see a list of ten different MasterCard and Visa offers. Some of these report that they “Report to Credit Bureaus” or “Build Credit When Used Responsibly,” while others do not. If you do not see such a reference, contact the customer service number and ask., Getting your foot in the door and obtaining approval for a secured credit card is fine, but you still want to get a good deal. As with unsecured credit cards, secured credit cards vary in the interest rates they charge on balances and the administrative fees that they charge for their services. Some will charge an annual fee just for having the account. Some companies may charge a fee for making credit reports, while others do this for no charge., Even though you are just starting out and may need to resort to a secured credit card, you may still qualify for certain incentive awards. Some secured credit cards offer cash back incentives on purchases that you make. If you will be using the card regularly, these incentives can add up to make a measurable difference., After you have shopped around and selected a bank or credit agency for your secured credit card, you will need to complete their application process. This generally consists of providing information about yourself, your employment, and whatever credit history you do have. You will select a credit limit, based on whatever the bank offers. Typically you will then need to open a savings account with that bank and deposit an amount equal to the credit line that you select. This money stays in the account. As part of your application, you sign an agreement giving the bank the authority to collect from that account if you ever fail to pay your credit bill. As long as you pay your credit bill on time, the money will just stay in the account.Most banks allow minimum security deposits of around $300 to $500 dollars. Your credit limit will either be equal to that amount or could be slightly higher, if the bank allows.
 You should be sure to pay your monthly bills on time consistently. If you do so, you may be able to talk to the bank about moving from a secured credit account to an unsecured account. The average time for making this change, assuming that you are a good customer, is about a year.
Learn how a secured credit card works.
Research various secured credit card offers.
Find a secured credit card that reports your payments to the credit reporting agencies.
Compare the interest rates and fees that the credit card companies charge.
Compare incentive awards.
Open your secured credit card account.
Work with the bank to transition to an unsecured credit card.
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