Secured credit cards provide people with bad credit the opportunity to enjoy the benefits of having a credit card. If you are looking to restore your credit, bank secured credit cards provide a viable option. This card usually only requires a savings or checking and account.

These cards work like regular credit cards except that the funds are secured by your checking account. In the event you are unable to pay your bill by the due date, funds are withdrawn from your account. This protects the bank from default while it allows you to enjoy the benefits of having a credit card.

If you have bad credit or no credit history at all, secured credit cards give you the opportunity to restore your credit by making payments on time. As you develop a history of timely payments, you credit history will improve. As your credit score improves, you will be able to get a credit card without using your checking account as collateral.

The great benefit about these cards is that you will never go into credit card debt as you are only allowed to spend the money you have in your account. Although this is a great benefit, the goal is to use the card responsibly as if this is an unsecured card.

There are disadvantages to secured credit cards in the event that you don't pay your bill on time. Just like unsecured cards, you can get hit with late fees and interest. As you let interest and late fees accrue, the money in your account will dwindle to cover these fees. Also these late payments can be reported to the credit bureaus and you will lose any credit repair benefit which is the reason you have a bank secured card in the first place.

If you need to establish credit whether due to no credit or bad credit, a secured credit card can help you get started. Just like a regular unsecured card, you need to pay your bills on time to avoid late fees and negative marks on you credit. As you build a solid repayment history, your credit will improve and you will be able to qualify for unsecured credit cards.