Secured credit cards: Get beyond these Top 5 myths

Often derided as tools for consumers with horrible credit, secured credit cards can be a great credit-building tool. Here are five myths debunked to help you understand how to use secured credit cards to maximum advantage. 

5. Myth: Once a secured cardholder, always a secured cardholder

Jochen Krause/AP/File
A pile of MasterCard and Visa credit cards are displayed in Frankfurt, Germany. Using your secured credit card wisely, you can build your credit to the point where credit card companies will offer you unsecured cards.

Just because you start out with a secured card doesn’t mean all the credit cards you get in the future have to be secured. Using your secured card responsibly, paying your bill on time consistently, and keeping your debt ratio low (ensuring that you never charge or carry a balance that is more than 30 percent of your credit line) are great ways to build trust with creditors and strengthen your credit. In turn, this could lead to offers of unsecured credit cards in the mail from respectable lenders.


– Daniel Tulbovich is a co-founder of He writes about credit card topics frequently.

5 of 5

Dear Reader,

About a year ago, I happened upon this statement about the Monitor in the Harvard Business Review – under the charming heading of “do things that don’t interest you”:

“Many things that end up” being meaningful, writes social scientist Joseph Grenny, “have come from conference workshops, articles, or online videos that began as a chore and ended with an insight. My work in Kenya, for example, was heavily influenced by a Christian Science Monitor article I had forced myself to read 10 years earlier. Sometimes, we call things ‘boring’ simply because they lie outside the box we are currently in.”

If you were to come up with a punchline to a joke about the Monitor, that would probably be it. We’re seen as being global, fair, insightful, and perhaps a bit too earnest. We’re the bran muffin of journalism.

But you know what? We change lives. And I’m going to argue that we change lives precisely because we force open that too-small box that most human beings think they live in.

The Monitor is a peculiar little publication that’s hard for the world to figure out. We’re run by a church, but we’re not only for church members and we’re not about converting people. We’re known as being fair even as the world becomes as polarized as at any time since the newspaper’s founding in 1908.

We have a mission beyond circulation, we want to bridge divides. We’re about kicking down the door of thought everywhere and saying, “You are bigger and more capable than you realize. And we can prove it.”

If you’re looking for bran muffin journalism, you can subscribe to the Monitor for $15. You’ll get the Monitor Weekly magazine, the Monitor Daily email, and unlimited access to

You've read  of  free articles. Subscribe to continue.