• A secure credit card is basically one with no "real" line of credit, but based on a set limit directly related with an amount of money deposited on your bank account. So, let's say that you ask for a secure card for a limit of $500, then your bank will ask you to deposit $500 in your secure credit card account. This amount will be "on hold" until you generate a decent credit score. Then you start spending up to the predefined limit and receive your statement every month. If you do not pay they will take the money to cover the expenses from your "on hold" amount. On the other hand, if you pay on time consistently for a period of time, the credit agencies will receive positive feedback from the bank, and this will be reflected on your credit score. At some point, you can apply for a "normal" (non-secure) credit card. Of course, at that point of time you will also be able to withdraw your money from the secure credit card account. Hope this information helps!
  • As long as you make your payments on time. You will build credit like a normal credit card (as far as the credit bureaus are concerned. They don't even know it's a secured card. On the other hand, don't make your payments and they'll hurt your credit just the same. Go to Lots of info on credit there. Check out the upper right corner. Also, visit It has Downloadable do-it-yourself information on how to clean up bad credit, rebuild credit, and improve credit. Learn proven techniques that will repair your credit. This information will repair the worst of credit report.

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