 TITLE: Understanding Secured Credit Cards CONTENT: How to Get a Secured Credit Card\n--------------------------------\nAre you ready to get a secured credit card? As you compare different the best secured credit card offers, here's what you need to consider.\n### 1\\. Rates and Fees\nSecured credit cards tend to charge higher interest rates and fees than standard, unsecured cards, so review the card's annual percentage rate (APR), annual fee and any miscellaneous fees carefully. Pay special attention to the card's annual fee; some secured cards don't have one, but others have high fees, which may be billed monthly. In addition to the annual fee, see if there are any application fees, maintenance fees, processing fees or additional cardholder fees. Also, make sure the card has a grace period. You can avoid interest charges by paying your monthly statement balance in full before the grace period ends.\nWhere do you find all this information? Every credit card issuer is required to print its card rates and fees in a standard format known as a Schumer box. Here's an example of a Schumer box:  \nYou may need to hunt around a bit to uncover the Schumer box on a credit card's website; you can usually find it by clicking on links such as \"rates and fees\" or \"terms and conditions.\"\n### 2\\. Cardholder Benefits\nCompare the benefits various secured cards offer. A card's benefits aren't as important as its APR and fees, but if all else is equal, the card with better benefits is usually the better choice. For instance, if you travel often and plan to use your secured card to rent a car, benefits including rental car insurance or travel coverage would be helpful. If you plan to use your secured credit card to make a major purchase such as a new TV or computer, look for a card that offers extended warranty coverage and protection against accidental damage or theft for purchases.\n### 3\\. Additional Options\nWhen you apply for a secured card, look for a card issuer that also issues traditional, unsecured credit cards. This will make it easier to transition to an unsecured card when you're ready to do so. Also, find out the criteria for getting an unsecured card. Some card issuers will approve you for an unsecured card after 12 months of on-time payments.\n### 4\\. Deposit Requirements\nThe deposit amount on a secured card varies, but many secured cards require a minimum deposit of $200 and allow you to make a deposit of up to $2,000. Be sure you have the deposit ready and available to transfer as soon as you're approved; you'll need to do this to activate your new credit card. The credit card issuer keeps the deposit until you either close the account in good standing or transition to an unsecured card.\nIt's a good idea to make sure your deposit will be held safely. It should be kept in a separate account at an FDIC-insured institution. Some card issuers may even put your funds in a certificate of deposit (CD) so your money will earn a little bit of interest.\nSurvey your options for increasing your secured card's credit limit. For example, do you have to demonstrate on-time payments for a certain period before you can request a credit increase? If you're starting out with a very low credit limit, such as $200, it's helpful to know when you'll be able to increase the deposit on your secured card and in turn increase your credit limit.\n### 5\\. Credit Reporting\nTo make sure the card you're considering will actually help build your credit history, find out if the issuer reports your payments to at least one (and preferably all) of the three major consumer credit bureaus. If a card doesn't report your payment history to the credit bureaus, using it won't help you improve your credit scores. Many secured cards will promote the fact that they report to credit bureaus. If the one you're considering doesn't specify whether it reports to the bureaus, contact the card issuer to find out. END