Some secured credit cards have conversion features, and others do not. At this point, it may be a good idea to consider obtaining a new credit card. Not only will you remove the "stigma" of having a secured card, but you can get your security deposit back and will likely lower your borrowing costs. This is because many secured credit cards have relatively high interest rates and/or fees compared to non-secured credit cards. You may still want to hold on to the secured credit card (but not use it), however, if it is your first and/or only current credit card. This is because the length of your credit history counts for 10% of your credit score, and your score will drop if you cancel your oldest card. First, check your credit report at www.annualcreditreport.com to make sure that it is as good as you think it is. Next, "shop around" for a credit card with better terms. If you are a "convenience user" (person who pays credit card bills in full), look for no annual fee and a long grace period. If you generally revolve a balance, look for a low permanent APR and not a low "teaser" rate that goes away after six months or so. Two good sources of information about current credit card terms are Consumer Action's annual credit card survey (www.consumer-action.org/archives/surveys/) and the Federal Reserve Board's Survey of Credit Cards (updated every six months) (www.federalreserve.gov/creditcard/survey.html). We would like your feedback on this Personal Finance Frequently Asked Question.

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