Secured Credit Cards: Myths V/s Facts
Credit Education Credit Cards Secured Credit Cards

Secured Credit Cards: Myths V/s Facts

Tanmay Punyarthi

Table of Contents

Credit cards are not accessible to all. If you have a stable income and a Social Security Number, you might not have a problem securing a credit card. However, if you have made credit mistakes in the past or do not have a source of income, it may be difficult for you to obtain a credit card. However, before getting a secured card, you should consider talking to certified financial officers to get your credit card myths cleared and understand the facts.

Luckily, secured credit cards are here, designed for people with bad or no credit. Simply put up a refundable security deposit and you should get approved for a secured credit card. So, do not believe any secured credit card myths that you will not get your deposit money back.

Moreover, among secured credit card facts, the financial experts will tell you that secured cards are all about putting up collateral so as to secure a credit line. Your credit limit equals your security deposit, which means you can get a $500 credit limit for a $500 security deposit. As long as you pay your monthly bills on time, all is well. If you default on your payment, you will lose your deposit.

Secured Credit Cards: How can they help to establish credit?

Secured credit cards help people with a bad credit history or no credit history to establish credit. They send reports about your payments to the three major credit bureaus – TransUnion, Equifax, and Experian.

It helps to know that by making timely card payments consistently on your Zolve Azpire secured credit card, you can have a favorable payment record with the credit bureaus. All this helps to increase your credit score and get access to attractive credit options.

Nonetheless, there are many other credit card myths related to secured cards, due to which you may not invest in them. So, we have listed the secured credit card facts to give you the correct picture.

Secured Credit Cards: Myths V/s Facts

There are various secured credit card myths doing the rounds. Thus, we have listed 5 facts about credit cards and dispelled the myths surrounding them. Knowing about the various credit card myths and facts can help you make the right credit moves.

Myth # 1: Secured Cards are meant only for people with bad credit

Secured cards are designed not only for people with bad credit scores but also for first time borrowers, youngsters, and students. You can also talk to financial agents to know about other credit card facts. They will tell you how secured cards help people who have not established a credit score to become eligible for regular credit cards.

Myth # 2: Secured Cards levy high-interest charges

There are various secured cards that come with low interest rates (like Zolve Azpire). Also, if you want to know about secured credit cards, you can talk to your financial planner. They will advise visiting the local credit union to avail secured cards with low interest rates.

Myth # 3: Secured Cards do not refund deposit

Secured cards come with refundable deposit benefits. So long as you cancel your card and do not have a balance due, you will get back your full deposit money.

Myth # 4: Secured Cards do not help to get traditional credit cards

Secured cards are designed to help people build credit. You must manage credit well if you want a good credit score. Secured card issuers report your timely payment reports to the credit-reporting bureaus, which helps to increase your credit score. A good credit score is your gateway to traditional unsecured credit cards and other lines of credit.

Myth # 5: Secured Cards are similar to prepaid and credit cards

Secured cards and credit cards are alike. The only difference between the two is that secured cards require you to put up a security deposit. You can use your secured card for your monthly purchases until your given credit limit. Pay your monthly bill on time and improve your credit history and credit score.

Now that we have dispelled the important credit card myths and facts, you may be more willing to try secured cards to build credit. Now, that is a wise decision! You can use the Zolve Azpire card to build and establish your credit and enjoy rewards and other benefits.


1. Does checking your credit report lower your credit score?

Ans. If a hard inquiry is run, your credit score might go down. If you check your credit report, and it is a soft inquiry, your credit score does not go down.

2. Does increasing your credit limit hurt your credit score?

Ans. Increasing your credit limit may not be a good idea if you want to be charged more than you can repay. Even so, a higher credit limit can help your credit utilization, which positively affects your credit score.

3. Will a few late payments hurt my credit score?

Ans. When you default on payments or make late payments, your poor repayment history reflects on your credit report. As a consequence, your credit score goes down. As much as possible, making payments on-time for that is a sure-shot way of boosting your credit score.

4. Can I increase my credit score by closing old credit card accounts?

Ans. You can hurt your credit score if you close old cards. A longstanding credit card, with a long history of on-time payments, demonstrates your responsible credit behavior and raises your credit score. In short, avoid closing your old accounts.

5. Will having more than one credit card hurt my credit score?

Ans. Maintaining many credit cards does not lower your credit score unless you are irresponsible with credit. So, if you have several credit cards, manage them responsibly. Indeed, having many credit cards enhances your credit utilization ratio, all of which boost your credit score. The ideal credit utilization ratio is cited to be 30%.