Secured credit cards: how they build credit from zero
A deposit-backed card is the simplest way to start a credit history. Here’s how to use one well.
By the BuffYourCredit teamUpdated November 5, 20267 min read
How they work
You put down a refundable deposit, usually a few hundred dollars, which becomes your credit limit. The card reports to the bureaus like any other card, so on-time payments build your history.
What to look for
- Reports to all three bureaus.
- No or low annual fee.
- A clear path to graduate to an unsecured card and get your deposit back.
Using it to build credit
Put one small recurring bill on it, keep the balance well under 30% of the limit, and pay it in full every month with autopay.
This article is for education and isn’t financial or legal advice. Scoring models and lender practices vary.