Secured credit cards may be great tools for building or rebuilding your credit, but they aren’t without their downsides. The cons you should consider include:
Some secured cards have high fees, so check carefully for what you have to pay. The best cards have no or low annual fees.
There may be additional fees for things like withdrawing cash from an ATM.
You may be charged for a credit limit increase. Imagine if you arrange with your issuer to change your limit from $500 to $750 and send the additional $250 to cover the difference. The issuer still might hit you with a processing fee for increasing the limit.
It’s possible to underestimate how interest impacts your balance and subsequently you charge over your limit.
There are rarely perks, like cash back or travel rewards You’ll have to wait on those until you can qualify for an unsecured card.