Secured Credit Cards

iVillage Member
Registered: 03-21-2002
Secured Credit Cards
1
Sat, 03-20-2010 - 10:10am

I have had credit card debt in the past but now thankfully all I owe on are student loans. My credit is poor and I've been using a pre-paid debit card to make purchases that I would normally use

Avatar for earnhardt_jr_fan
iVillage Member
Registered: 03-25-2003
Sun, 03-21-2010 - 1:47pm

I think what's most important here isn't if the card will switch to an unsecured card or not - the most important thing is...

Who clearly states in their terms that they report to the credit bureaus? Some secured cards do NOT report since the card is almost like a debit card. If would read all the fine print and make sure the card you choose will be reporting back to the bureaus.

If they all say they report, then I guess I would evaluate what you're going to use the card for. Are you going to use it for small purchases and then immediately pay it off? If so, go with the Citi or BOA cards that will eventually turn into unsecured cards. If you plan to carry a balance, I would go with the no interest card.

I will say that I've gone through not well known card companies in the past and never had an issue with them. Fees are usually out of control on cards designed for people with no/poor credit. So, be prepared to pay out some ridiculous fees.

Good Luck!

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