Secured cards vs credit-builder loans
Secured cards and credit-builder loans both aim to help build payment history, but they work differently.
Secured cards
A secured card requires a refundable deposit that usually becomes your credit limit.
Credit-builder loans
A credit-builder loan holds funds while you make payments, often with a savings component.
Which may fit you?
It depends on whether you want a usable card or a structured loan. Compare options on our comparison page.
This article is for informational and educational purposes only and is not financial advice.
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- Consumer Financial Protection Bureau — What Are Some Ways to Start or Rebuild a Good Credit History?
- Experian — Credit-Builder Loans vs. Secured Credit Cards: Which Is Better?
- Experian — What Is a Credit-Builder Loan?
- Equifax — What Is a Secured Credit Card and Does It Build Credit?
- Equifax — What Is a Credit-Builder Loan?
- NerdWallet — How to Build Credit From Scratch at Any Age
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