Secured credit cards are an excellent way to help repair bad credit, as they provide a path towards a brighter financial future. They are aimed at those with bad credit or those that are trying to rebuild their credit profile.

A secured credit card is so named because it requires the user to “secure” it with an upfront security deposit. These deposits function as the card’s line of credit, which can usually be increased over time up to the card’s maximum. This line of credit is based on the amount of the deposit the user initially puts down rather than their credit score.

The most apparent benefit of a secured credit card is that it allows you to build or rebuild your credit score. As you use the card responsibly and pay off your balance in full each month, your payments are reported to the three main credit bureaus, and your credit score can begin to slowly improve.

Secured credit cards also offer protections that are not available with unsecured cards. These include such perks as fraud protection and an extended warranty on purchases. Additionally, secured credit cards may also offer rewards such as cash back or points, so users can even earn rewards while rebuilding or improving their credit