The Best Secured Credit Cards
When you’re dealing with a negative credit history, or a very low (or any) credits, lenders might accept you for secured credit cards that need a non-refundable security deposit, but is just as the other types of credit cards (meaning that you have to pay the account each month, but the payments are not taken out of your deposit). The secured credit card can assist you to improve your credit score if you utilize them with care, and are among our top ways to achieve this.
Here is our selection of the top 7 secured credit cards available currently. We’re especially fond of cards that let you “graduate” that is, that they either return the security deposit after an amount of time-bound payments and also allowing you to use the card without a credit check or providing you with an upgraded card that is unsecured in return for the deposit. We also favor large banks because when you’re trying to build credit it’s beneficial to establish a connection with a bank that provides unsecured credit cards that you may like in the future.
- Discover It Secured Credit Card The card allows you to deposit anything between $200 and $2500 and receive credit lines of the same size. The card also has the cashback reward program, which includes you can earn 1% back on the majority of purchases and 2% rebate on gas and restaurant purchases (on the amount of $1000 or more in these purchases per period of a calendar year). A solid credit history can aid in building credit “Using credit wisely across all your loans and credit cards including Discover and others, could be able to earn your security deposit returned.” There is no annual cost. Rate of interest of 25.24 percent.
- BankAmericard Secured Credit Card You can make an amount of security that ranges from $300-$4900 and you’ll be granted credit lines of the same amount. Additionally, they “periodically check your account” and take into account your credit score overall (including the account you have with us and any other credit card and loans) you could be eligible to return your security deposit.” No annual fees. Rate of interest: 25.24%.
- Capital One Secured MasterCard – You will receive the cash line up to $200 for the first time when you make a deposit of $200 (in certain cases, you might be able to make smaller amounts). If you pay the first five payments in time, Capital One might increase the credit limit without a subsequent cash deposit. However, it doesn’t offer the option of “graduating” with an unsecured credit card. There is no annual charge. Rate of interest: 26.99%.
- Secured Visa – Although this credit card secured by the government does not come from any major bank and provides no option to “graduate” into an unsecured card, there are some who opt for it due to the aspect that it does not perform a credit check at the time you apply. (It does submit your information to major credit bureaus after you are approved, however.) It charges a $35 annual cost that is not included in the security deposit that you make to obtain the card, however, it has a fair (for secured cards) 19.64 percentage interest rate.
- First National Bank of Omaha Secured Visa Make an amount of $300-$5000 and receive a credit line similar to the amount. On their website: “You may be able to recover your deposit immediately in just 11 months if you keep a good credit record at First National Bank of Omaha (subject for credit authorization).” There is no annual fees. Rate of interest: 20.24%. (May does not apply to all geographical regions.)
- Citi Secured Mastercard The card allows you to make a payment ranging between $200 and $2500, and your credit limit is the amount you put down. There is no annual fee and the card has a 24.74 percent interest rate. Citi does not provide the possibility of an upgrade to an unsecured card which makes this card slightly less appealing according to us. Additionally, they can keep your money for up to 18 years, even if you wish to terminate the card before that date.
- U.S. Bank Secured Visa deposit will be deposited in the U.S. Bank savings account using this card that is secured and you earn a tiny amount of interest. There is an annual fee that is $29 (not included in the security deposit). Rate of interest: 21.24%. There’s there is no indication on the website of an upgrade to an unsecured status in the near future So don’t put your hopes up here.