Best secured credit cards
A secured credit is a type of credit used when a person has limited or damaged credit. It requires the user to deposit a refundable amount to hold as collateral until the account is closed. In most cases, the deposit amount is equal to the loan amount. This means that you can only spend within your deposit limits. Secured credit does not charge high fees since they are fully secured; the issuer can keep the deposit amount if something goes wrong. Generally, secured credit is less risky as compared to unsecured credit.
Best secured credit cards
This secured credit has no annual fee, and it allows you to build your credit history with the three major credit bureaus. After 8 months, you get a chance to upgrade to unsecured credit. Discover It also provides rewards and sign up bonuses. The minimum deposit limit is $200, which is refundable after approval.
Capital One Secured MasterCard
This is a flexible secured card that comes with no annual fee. It allows you to change your payment due date and does not charge fees on all purchases made outside the United States. After using the card for five months, you stand to qualify for a higher credit limit provided you make your payments on time. The refundable deposit ranges from $49 to $200. The best part about using the Capital One Secured MasterCard is that it makes frequent reviews to establish your account’s risk index. If each review is positive, you stand to be transitioned to unsecured credit.
Federal Credit Union Platinum Secured MasterCard
This secured credit is popular for its high credit limits. Although it does not offer bonuses, it offers a one-point reward per dollar spent on all purchases. It has no annual fee and does not charge purchases made outside the United States. It has a minimum deposit limit of $500 and a maximum limit of $ 25000. Note, however, that the card does not guarantee transition to unsecured credit.
Citi Secured MasterCard
While this card does not offer rewards or benefits, it is popular for its low interest rates. Although it does not charge an annual fee, purchases made out of the United States are charged 3% more. The card is also flexible to allow you to change your payment due date. The minimum refundable deposit is $200.
DCU Visa Platinum Secured Credit Card
The card is popular for its low rates, although the interest you are likely to earn from savings is significantly low compared to other credit unions. Moreover, it does not have an annual fee, rewards, or bonuses. What’s more, purchases and transactions made in foreign countries are not charged. The minimum credit deposit is $500 and a credit union membership of $10 for those who do not qualify for membership. Note, however, that transition to unsecured credit is not guaranteed.