Why would I want a secured credit card?

Why get a secured card?

Frequently people want to know why they would want to get a secured credit card rather than just spend the money that they are placing into the bank account.  If the goal is only to spend money, then the secured credit card is not a very good idea.  A consumer who did so would end up spending more in interest than would be earned in interest on the money in the bank account.

Secured Card as a Tool

The secured credit card is a tool for building or rebuilding a good credit score.  So it will have an associated cost.  That is, the secured card is a service provided by the bank and a convenience for the customer.  That service and convenience comes at a cost of the fees and the spread between the interest charged on the card (aside from any grace period) and the interest paid on the deposit account.

Cost v. Benefit

For a consumer to make the decision about whether or not to apply for a secured credit card, the consumer needs to decide whether the cost of the card (fees and interest) are worth the advantages the card provides (improving credit scores and building better habits).