The Only Kind Of Credit Card Debt That You Should Ever Have


I know that we all are all taught that credit card debt is a bad thing. I typically agree with this as all debt is bad debt. There is however a certain form of credit card debt that is essential for certain individuals to have. This debt is vital to the success of their future financial buying power. What is this form of debt?

The answer is secured credit card debt.

Secured credit card debt is appropriate for individuals looking to rebuild their credit. You might need to rebuild your credit for any of  the following reasons:

  • too many financial obligations
  • job loss
  • foreclosure
  • repossession
  • bankruptcy
  • neglect

Secured credit cards are the best tool for rebuilding your credit.  In order to qualify for a secured card, you have to make a deposit into a bank account with the card company. Your account is backed up by the deposits in the bank account. Your credit limit is equal to the deposit amount.

For example, if you want $500 worth of credit, you will have to deposit $500. Secured credit cards are perfect for people with no credit or bad credit. The best way to use secured credit is to buy an item and pay the balance off immediately. Keep the card for a year and you will start receiving offers for an unsecured credit card with a higher limit.

Stay away from secured cards with high fees such as cards from Next Millenium and First Premier Bank. These cards come loaded with all sorts of fees that will only help to further destroy your already weak credit rating. If you are looking to rebuild your credit, this is my favorite credit card.


  1. This is a lesson you’ll read about over and over and over…but so very many people still don’t get it.

  2. That’s how I got my first credit card! Someone should’ve told the 250 or so users who bought into that Kardashian card!

  3. A good alternative indeed. “All debt is bad debt” True and false in my opinion. The freedom of no debt is a goal everyone should try to attempt but almost all of us have to go through a certain amount of debt to live. A mortgage, a car loan, some credit card purchases. The only thing is to make sure you’ll be able to pay it off and avoid interests as much as possible.

    • That’s my only issue with debt. It’s the interest payments. Most people cannot afford to pay their debts in full each month so it piles up against them.

  4. Thanks for opening my eyes to this new form of financial tool! I didn’t know it existed! It does sound like a great option for those whose credit has been diminished from previous happenings.

  5. I think this is a smart task for people that have just gotten out of bankruptcy.

    The fact that it is secured helps people bring discipline.

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