 TITLE: Understanding Secured Credit Cards CONTENT: How to Use a Secured Credit Card\n--------------------------------\nYou've got your secured credit card in hand. Now what? You can use your secured card just as you would any credit card. As with any credit card, you'll get a statement each month. Make sure you have the funds available to make at least your minimum payment every month. Ideally, you'll completely pay off your balance every month.\nYou might be tempted to max out your new card on a big purchase. But before you hand over your card for that new TV, remember that the goal of your secured card is to help you build credit. To do that, use your card a few times each month to make small purchases, and always pay your bill on time. Limiting your purchases helps make sure you can cover your monthly payments. If possible, consider setting up auto payments to help make sure you don't miss a payment. Your history of on-time payments is the biggest factor in your credit scores, so staying consistent will gradually build your credit history and help to improve your credit scores.\nYou can carry a balance on your secured credit card, just like with any credit card, but doing so will incur interest charges. Another risk of carrying a balance is that it increases your credit utilization ratio, which is the percentage of your available credit you're using. A high credit utilization ratio (above 30%) can hurt your credit score. Finally, if your balance gets so big that you can't pay your bill, you'll eventually lose your security deposit. Paying off your balance in full each month helps to demonstrate that you're managing your credit responsibly.\nTo monitor your progress, keep an eye on your credit scores. Some secured card issuers will automatically approve you for an unsecured credit card as soon as you've made a certain number of on-time payments on your secured card. Others require you to apply. If your credit score climbs high enough, you may even be able to apply for an unsecured credit card through another issuer. END