Credit cards can have both a positive and negative effect on your credit score. This mainly comes down to how you use it. When used responsibly, a secured credit card can help build your credit. It can:

Add positive payments to your credit history
‍Your credit payment history makes up a big part of your credit score, so having positive payment history in your report is important for building your score

Increase your available credit
‍Credit utilization is another factor in determining your credit score. This is your card balance compared to credit limits, which should be kept under 30 percent.

Thicken your credit file
‍When you don’t have any credit accounts, you can be “credit invisible.” Your secured card can help you establish credit so that you become credit scorable.

Maybe your application for an unsecured card was rejected. Maybe you had an “adverse” credit event like a bankruptcy. Maybe you just haven’t had many credit accounts in your life or moved to the US from a different country and have yet to establish your credit in America.

If you have a low credit score or limited credit history, approval for a secured card can be easier than for an unsecured card. To get a First Latitude Mastercard we verify two things:
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‍1. That you are not part of a bankruptcy proceeding
2. That you can provide the documents necessary for the required government required identity check if needed.

‍It’s that easy! Plus, The security deposit that you provide lowers the risk to the lender. So, things like your credit score aren’t weighed as heavily during the approval process. Since lenders are less restrictive, you have a better chance of being approved.

You can use a secured credit card just like an unsecured card.

Secured cards are accepted at millions of retailers nationwide.

You can use your secured credit card for any type of transaction that requires a credit card — like online shopping, subscription services, or travel reservations.

Secured cards come with fraud protection and resolution services just like unsecured cards do.

Secured cards can be used as a stepping-stone toward an unsecured credit card. Once you have been able to establish a positive credit history and improved your credit score¹, you may be able to qualify for an unsecured card. This means that you may have a higher credit limit and won’t have to provide a deposit for the card. An improved score also means that you may be able to qualify for other forms of credit like personal loans and auto loans.

Secured cards are accepted at millions of retailers nationwide.

You can use your secured credit card for any type of transaction that requires a credit card — like online shopping, subscription services, or travel reservations.

Secured cards come with fraud protection and resolution services just like unsecured cards do.