The Best Secured Credit Cards
In the event that you’ve got a negative credit history, or a very low (or any) credits, lenders could accept you for secured credit cards that need a non-refundable security deposit, but function as every other type of credit card (meaning that you have to pay the account each month, but the payments are not taken out of your deposit). A secured credit card can be a great way to improve your credit score if you utilize them with care, and are among our top ways to achieve this.The Best Secured Credit
Below is our list of the seven best-secured cards available currently. We’re particularly fond of cards that let you “graduate” which means that they either return your security deposit following the period of regular payments and allowing you to use the card without a credit check or giving you an upgraded card that is unsecured and also remitting your security deposit. We also favor big banks since when you’re building credit, it’s advantageous to develop a relationship with a bank that provides unsecured credit cards that you may wish to acquire in the near future.
- Discover It Secured card You can deposit anywhere between $200 and $2500, and you’ll get credit lines of equal size. The card also has the cashback reward program, which includes A 1% discount on the majority of purchases as well as 2% off gas and restaurant purchases (on the amount of $1000 or more in these purchases per quarterly calendar). A solid credit score can assist in building credit “Using credit prudently across all of your credit and loan accounts such as Discover and others, could allow you to receive your security deposit returned.” There is no annual cost. The interest rate is 25.24 percent.
- BankAmericard Secured Credit Card You can make a security deposit of between $300 and $4900, and receive credit lines of the same amount. They also “periodically examine your account and take into account your credit history overall (including your bank account as well as other credit cards and loans) You may be eligible to return your security deposit.” There is no annual fee. Rate of interest: 25.24%.
- Capital One Secured MasterCard – Receive an initial 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 your credit limit without an additional cash deposit. However, it doesn’t offer the option of “graduating” from an unsecured credit card. There is no annual fee. Rate of interest: 26.99%.
- Secured Visa Although this credit card secured by the government isn’t from any major bank and provides no option to “graduate” to an unsecured card, some individuals prefer it due to the fact that it doesn’t conduct a credit screening when 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 you pay to obtain the card, but it’s a decent (for secured cards) 19.64 percentage interest rate.
- First National Bank of Omaha Secured Visa Make the 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 through us (subject for credit acceptance).” There are no annual fees. Rate of interest: 20.24%. (May does not apply to all geographical regions.)
- Citi Secured Mastercard The card allows you to can make a cash deposit of anywhere between $200 and $2500. your credit limit is equal to the amount you put down. There is no annual fee and a 24.74 percent interest rate. Citi doesn’t mention the possibility of upgrading to an unsecured card which makes this card slightly less appealing according to our view. Additionally, they can hold your cash for up to 18 months even if you wish to terminate the card prior to the date.
- U.S. Bank Secured Visa deposit will be deposited in the U.S. Bank savings account using this card that is secured which means you can get a small amount of interest. It has an annual cost that is $29 (not an element of your security account). Rate of interest: 21.24%. There’s there is no indication on the website about a change to unsecured status in the near future So don’t put your hopes up here.