Secured credit cards are an easy way for consumers to boost their credit scores, according to lender Rodney Anderson at Rodney Anderson Lending in Plano.
Here's how a secured card it works:
"You deposit your own money, whether it's $200, all the way up to $5,000," Anderson said. "The credit card company gives you a credit card for that amount."
Because it's your money, not the card issuer's, almost anyone can get a secured credit card.
"On most secured credit cards, it's guaranteed approval," Anderson said. "There's no income verification, and there's no credit check."
But just like a traditional credit card, a secured card reports to the major credit bureaus.
"You charge on it once a month. You pay it off, and it helps you build and rebuild your credit," Anderson said.
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However, there can be pitfalls. Anderson advises consumers to check the annual percentage rate, minimum deposit and the annual, monthly and application fees.
