If you want to build or rebuild your credit, one of the easiest ways to do that is with a secured credit card.
What is a Secured Credit Card?
A secured credit card is about the same as an unsecured credit card in that you receive a credit limit, can incur interest charges and in some cases can even earn rewards. The big difference is that for a secured credit card, you are required to make a deposit in order to receive a line of credit. The amount you deposit usually becomes your credit limit.
Your amount of deposits typically start at $200 and can range up to $2,500. If you want a bigger credit limit, you’ll need to deposit more money.
The amount you deposit acts as collateral if you default on payments, but it’s completely refundable if you pay off your balance in full and close your account or upgrade to an unsecured card.