Secured Loans- How to Build Credit at 18

How to Build credit at 18 using secured credit cards.

secured loans-How to build credit at 18I will say the best option is by getting a secured loan or a secured credit card. These cards require a cash deposit that will represent your budget for that card. For example, if you put $400 in the account, you would have a $400 line of credit. If you put $750 in the account, then $750 would be your credit limit. Secured credit cards are only given to individuals with no credit history, or to people who have bad credit and can’t get any other card to re-build their credit.

Secured credit cards can be a great way to build your credit, but there are several things you need to understand from the beginning.


These cards will have higher interest rates in some cases.
These cards may have annual fees.
Most cards will limit you to $300-500 starting out
These cards are not a long term solution to your credit however, secured credit cards can help you establish credit and if you pay these cards accordingly it will be of great benefit going forward.


Since these are credit cards designed to help someone with a bad credit history (or in rare cases, none at all) get into the game, these are not always going to be the best deal for someone that is 18 years of age or, just starting out However when there’s nothing else available a good secured credit card can help to build your credit score to a respectable level.


The problem with secured credit cards is that there are some good, a lot bad, and some that are such rip offs they should be criminal. Reading the fine print is critical with these cards. To make sure you get the best deal possible, ask around to find the best rates. There are also several questions that you want to ask any bank you’re looking to get a credit card from. These questions include, but are not limited to:

Do you report to all 3 major credit bureau’s Do you report this as a secured card – you want a card that doesn’t report to the credit bureau as a secured card as this can hurt your credit score.

Is my collateral deposit put into a savings account or CD?

Will the bank add to my credit after a year of on time payments?

That last question about secured credit cards is less important than the others, but could be a nice bonus that some banks offer. The most important question is making sure that your credit card payments are reported to all three credit bureaus on a monthly basis.

The whole point of getting a secured credit card is to slowly build your credit profile. If your payments are not being made to the credit bureaus, then you’re losing the main point of having a secured credit card.

Another detail that is extremely important before choosing a secured credit card is to make sure that not only is the card reported to the credit bureaus, but also that it is reported simply as a credit card and NOT as a “Secured Credit Card.” Luckily, we have helped you navigate through the secured credit card offers and we recommend These 5 cards.


secured loans-How to build credit at 18


1. Green DOT Gold Visa

Offers credit lines available from $200 to $5,000! Super Low Fixed 9.99% interest rate on purchases with no penalty rate and
No minimum credit score requirements. They invite all credit types to apply with no processing or application fees.

2. Green Dot Classic Visa

Fast, easy application process. Choose your credit line and open your Personal Savings Deposit Account to secure your line of credit.

3. Green DOT Platinum Visa

Very similar to the above and Your application will not impact your credit score. The security deposit can be as low as $200 to get you started.

4. Applied Bank

This one is better than Prepaid and all you need to do is Load One Time and there is no Credit Check or Minimum Credit Score Required.

5. First Progress Platinum

Monthly Reporting to all 3 Major Credit Bureaus to establish credit history with a fully refundable Deposit of $200 to $2,000 Submitted with Application.


The reason for this is that many credit reports will actually dock you points for having a secured credit card because it’s a sign of bad credit history. Even if your card is a secured credit card, you want it to simply report as a credit card. The First Progress Platinum secured credit card reports to the 3 monthly credit bureaus without noting that the card is secured so you are able to build your credit score using the most effective techniques.

Another useful benefit with these cards is one you should take into consideration if you are looking to establish a strong credit rating. A secured credit card will enable you to have access to a line of credit that you might not otherwise have. You can then begin to make purchases and make on time payments which is a very effective way to build your credit rating. These cards are typically available for a deposit credit limit of anywhere between $200 and $10,000, so there is a nice range that should meet the needs of most borrowers. Once you have made timely payments for a period of time, your credit score will improve, and you will be able to get a standard credit card or other forms of financing.


I hope this article helps on How to Build credit at 18 using secured loans /secured credit cards.


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