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The Federal Trade Commission (FTC) offers American consumers some advice on secured credit cards for bad credit:

• Secured credit cards, also known as prepaid credit cards, require the consumer to open and maintain a savings account for their line of credit.
• The savings deposit required for a secured credit card can range from a few hundred dollars to several thousand dollars
• The credit line offered is based on the deposit but usually between 50% -100%

Prepaid Credit Cards Processing Fee

There may also be a processing fee, which could be around $100 and an annual fee of $50 before a secured credit card is issued (fees will vary and some have no charges).

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