When you're new to the U.S., you may not have a credit history - which can make it hard to get approved for most credit cards or loans. A secured credit card solves this problem. The security deposit you provide reduces the risk for the lender, and can make it easier to get approved without an existing U.S. credit score. From there, your payments are reported to credit bureaus, which can may help you build the credit history you need to reach future goals—like:
Renting an apartment
Buying a home
Financing a car with better rates
Qualifying for unsecured credit cards
Getting a cell phone plan without a deposit
Setting up utilities without extra deposits
Lowering insurance premiums
Applying for certain jobs
Starting a business or getting a business loan
