The banks know that even in these times of economic uncertainty, job losses, and rampant financial difficulties, there is still a great need for credit tools to be available to people who might have a less than stellar credit history or for those who are just establishing their credit.

Secured credit cards are the banks answer to this growing market need. Having access to credit cards, means that people can book travel arrangements, rent cars, and hotel rooms, etc. without a credit card, many of these regular activities are either difficult or impossible to do. The card doesn’t just provide purchasing power, but it also provides freedom of choice and movement to people in these situations.

Secured credit cards may or may not come with an annual fee attached, and the interest rates charged on outstanding balances can vary somewhat, so it pays to do your homework. The range of interest rates that are typically available on secured credit cards are from 9.99% all the way up to 19.5%. If an annual fee is charged, it is generally between $50-$60. That fee would be on top of other requirements such as the deposit.

When comparing the interest rates on various cards, pay special attention to the fine print. Many people have got caught with an interest rate they thought was their permanent rate, only to find out later on it was only for the first few months, and then the rate went up substantially after that. It is also worth noting that a number of these credit cards do not require a minimum income or previous credit history from the applicant. In some cases, the lending institution may not even check your employment history or credit score.

With secured credit cards, there may be certain limitations attached such as a lifetime credit limit, no protection in the event of fraud, and deposits are sometimes required. In those instances, the lending institution may only allow credit to be granted to the extent of a deposit made. Generally speaking, credit limit increases will also only be allowed up to a certain point. However, credit limits can range quite widely, for example some have $5000 limits, some have $10,000 limits, all the way up to $25,000.

The great news about secured credit cards is that some of them are offering additional services such as travel accident insurance, FDIC insurance, the ability to make an emergency transfer of cash, and auto rental options. Certain cards that require you to make a deposit before you can be granted credit, may pay you interest on that deposit.

Unlike in the past when secured credit cards came with no additional features, there are even cards that offer rewards programs for airlines and hotels, and rebates on the booking of travel condos. There is even a new feature being offered by Visa that is what they call a “credit-on- demand” program, which may provide up to $25,000 of available credit. Secured credit cards now more than ever, are offering competitive features, which makes doing your own research on them very important.

Certain types of secured cards will guarantee your application will be approved, again regardless of your employment, income, or past credit history. These types of cards are usually accepted anywhere unsecured credit cards are, making them a valuable financial tool for people who may have limited options otherwise.

Now that you know all of the great options and benefits that secured credit cards can offer, you don’t have to allow your poor credit history or lack of a financial track record to be a barrier to your purchasing, travel, or other credit needs. You can enjoy the freedom a credit card can provide and be confident in knowing that your past financial options are now much wider. Browse the various options to choose the card that is right for you.