People with bad credit can use secured credit cards to get a line of credit and raise their credit score. Secured cards have the same purchasing power as unsecured cards, so if your secured card is branded with the Visa or MasterCard logo, you can use it anywhere those brands are accepted.
An unsecured credit card does not require a deposit, while a secured credit card does. To qualify for an unsecured line of credit without a deposit, you must have a credit score of at least 600. This is because secured cards are designed for persons with poor credit ratings (600 or less). We’ll start with the application procedure and work our way up to understanding how secured credit cards work. This article is also a list of the best-secured credit cards.
What are the best Secure Credit Cards?
The general rule seems to be that the poorer your credit is, the fewer favorable terms and opportunities you will have when applying for loans. If you’re looking to rebuild your credit, you may want to consider a secured line of credit, which is offered by some of the most reputable and well-known financial institutions. Our best pick is the Capital One Platinum Secured Credit Card.
Capital One Quicksilver Secured Cash Rewards Credit Card
This is the best secure Credit Card offer so far. You get unlimited 1.5% back on every purchase daily with no yearly or hidden fees. You can check your approval status in a matter of seconds.
Set up an initial credit line of $200 by putting down a $200 refundable security deposit. If you are trying to raise your credit score, applying for a card like this could be beneficial. You will not be held liable for any illegal charges gives you a sense of security. When you use your card properly, such as by making timely payments, you may be able to get your security deposit back in the form of a statement credit.
In as short as six months, you could be automatically assessed for a larger credit limit without having to make any extra deposits.
Please read the terms and conditions well before you proceed.
Capital One Platinum Secured Credit Card
This credit card will give you peace of mind because it has no yearly or hidden costs. You can check your status in a matter of seconds. Capital One Platinum Secured is a good option for responsible credit card users, especially for people trying to raise their credit score.
You can get an initial credit line of $200 for as little as $49. When you use your card properly, such as by making timely payments, you may be able to get your security deposit back in the form of a statement credit. In as short as six months, you could be automatically assessed for a larger credit limit without having to make any extra deposits.
Discover it Secured Credit Card
You don’t need to have a high credit score to apply for this credit card. With no annual fee, you can receive cash back and increase your credit score with responsible usage.
Deposit at least $200 as a refundable security deposit to establish your credit line. To get a $200 credit line, you’ll need to put down $200 in advance. A $500 down payment will get you a $500 credit limit. When making a deposit, you must supply your bank information, and the deposit matches your credit limit.
Starting at 7 months, Discover It company will conduct automatic evaluations to see whether they can recover your deposit and convert you to an unsecured line of credit. You can get up to $1,000 in combined gas and restaurant purchases. Each quarter earns you 2% cash back. In addition, you’ll automatically receive 1% cash back on all additional transactions, up to an unlimited amount.
You can even ask that they remove your personal information from some people-search websites with the help of Discover service. You can use the mobile app to activate this feature.
Secured Sable ONE Credit Card
Get 2% cash back on your everyday expenses at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and more! And 1% cashback on all other purchases! Absolutely no credit check is necessary for applying for this credit card. Non-citizens do not need a Social Security Number (SSN) to apply.
When you open an account, you’ll get $25 if you build your credit score to 700+ in the first year of use. In as little as four months, you may be debt free if you are serious about your finances!
An annual fee is not required; neither is a down payment; nor are any foreign transaction costs.
Bank of America® Customized Cash Rewards Secured Credit Card
Earn 3% cash back in your preferred category: petrol, online shopping, restaurants, travel, drug shops, or home improvement/furniture stores, and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in the chosen category, whether grocery store, wholesale or club purchases each quarter. Earn an unlimited 1% cash back on all other transactions.
To start this account, you’ll need to put down a refundable security deposit of at least $200 (up to $5,000). You can get a free monthly update of your FICO® Score through your Mobile Banking app or Online Banking.
Adding an optional overdraft protection option to your qualified Bank of America® checking account helps prevent refused transactions, returned checks, and other overdrafts. A transfer fee may be required. There is no yearly charge for this service.
The only way to properly use a secured credit card that will help your credit score is to choose one that reports to the three major credit agencies – Experian, Equifax, and TransUnion. But more on that later.