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Secured credit cards are considered to be safe by most people since it prevents them from falling prey to high debts. In fact, most of them opt for this type of cards as their first credit cards since it is easy to obtain. People who have no credit history or poor credit history can opt for these cards because banks approve them easily. These cards offer an easy way to repair bad credit history or even create a good one.

Though these are the safest type of credit cards you can avail of, there are a few factors that you need to keep in mind before you get one for your needs. This will help you get a card that will prove to be good in all aspects.

First of all, find out all the various charges associated with the secured credit cards. It is important to know about the late payment charges, penalties, annual fees and other charges that may be levied on your account. Also, find out about the rate of interest you will be offered. Right now, the credit card segment is highly competitive and hence, there are lenders who offer really low rates as promotional offers. Sign up for such cards;

However, find out the rate of interest that will be applicable post the promotional period and also the duration of the introductory offer. Opting for secured credit cards that have high fees associated to them can be an unwise decision since it will eat into the money you pay as deposit to the bank.

Next, find out the amount you need to pay to the bank as a security deposit. You will be given a separate account and the money you pay as deposit will be credited to that account. Whenever you default on your payment, the bank will deduct the amount from this deposit. Some banks pay interest on the deposit amount. It is recommended that you opt for such lenders since you will also be earning interest. Find out the interest rate you will be paid for that amount.

Finally, find out the terms and conditions to apply for the card. Most often than not, secured credit cards do not impose a lot of restrictions on the applicants. However, you need to be above the age of 18 to apply for one. Some banks may ask you to open a savings or checking account with them before offering you the card.