Sometimes you can't get a break! Can't qualify for a credit card? Well, cash secured credit cards are the answer to your problem! Anyone can apply for and obtain one, and they offer a great stepping stone to other financial products and financial freedom. Secured credit cards are great tools to use if you need to establish a credit history or reestablish damaged credit.



Any number of reasons may exist in your life right now that might make it difficult to qualify for a standard credit card: bankruptcy, divorce, poor credit history or no credit history at all. If you find it difficult or impossible to qualify for a credit card, a cash secured credit card is the answer to your needs - they give you the opportunity to build a credit history, posturing yourself for more advanced credit products.

With a secured credit card, the balance is prepaid, and the card can be used in all of the same places where a regular credit card is accepted. The big difference is that the charges on a prepaid card are covered by money that you give to your credit vendor before you use your card. The bank that issues your secured credit card will require some money up front, usually between $50 and $500 - the ones that require less may change you more for maintenance of the account, but they give you the opportunity to build a credit history with very little balance down. You can usually spread the initial cash outlay out over time too, by making several initial payments to the bank to bring your balance up to whatever they require.

Here's the important part: even though a prepaid credit card is funded by your own cash, the issuer reports your usage of the card and payment information to the three big credit bureaus just as standard credit vendors do. So - with a Secured Credit Card you are guaranteed acceptance, and you have the chance to demonstrate your willingness to make your payments on time. This will have a swift positive impact on your credit score. Don't forget: it's important to maintain the account, make your payments on time and keep the balance at an acceptable level.

After nine to eighteen months of good payment performance credit companies will usually give you the opportunity to convert the credit card to a standard credit card. With continued maintenance of your account you will build (or rebuild) a healthy credit history that you can build on with increasingly flexible credit vehicles. Look for future articles that will describe how you can build upon the incremental credit that you establish with a secured credit card.