When to get a secured line of credit

If you have bad credit, a secured credit card may be your best option for establishing credit. Most credit cards are unsecured, meaning that they don't have limits or restrictions attached to them. A minority of credit cards for bad credit consumers are secured, meaning that they are directly attached to your bank account. This drastically lowers the risk for the credit card company because whatever you borrow is backed up by your real money. Although secured credit cards for bad credit usually have higher fees associated with them, the rates vary from card to card. Shop around for a better deal and use your secured credit card to build a better credit rating.