When people are struggling to rebuild their credit, a secured card can offer them the opportunity to qualify for a credit card and establish a positive credit history. Unfortunately, secured cards also have several drawbacks compared with standard credit cards. For example, secured cards always require a refundable deposit that is held by the card issuer, and nearly all secured cards charge an annual fee. In fact, there are many secured cards that charge a monthly fee. Also, secured cards tend to offer fewer benefits such as purchase protection policies and travel perks.
Eventually, secured card users are going to want to graduate to standard, non-secured credit cards to enjoy some of features they have been missing. If you are a secured credit card user, here is how you can get there: