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Capital One Quicksilver Secured Cash Rewards Credit Card
Capital One Quicksilver Secured Cash Rewards Credit Card
- 29.99% variable based on the Prime Rate Regular Purchase APR
- 29.99% variable based on the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The Capital One Quicksilver Secured Cash Rewards Credit Card is a secured credit card that offers 1.5% cash back on all purchases, no annual fee, and no foreign transaction fees. Cardholders may automatically graduate to an unsecured version of the card with responsible use in as little as six months.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds
- Put down a refundable $200 security deposit to get a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you wo't be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Enjoy up to 6 months of complimentary Uber One membership statement credits through 11/14/2024
- Regular Purchase APR: 29.99% variable based on the Prime Rate
- Balance Transfer APR: 29.99% variable based on the Prime Rate
- Balance Transfer Transaction Fee: 3% of the amount of each transferred balance that posts to your account at a promotional APR that we may offer you. None for balances transferred at the Transfer APR
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: 3% of the amount of the cash advance, but not less than $3
- Late Payment Penalty Fee: Up to $40
- Minimum Deposit Required: $200
- You have bad credit or no credit history at all
- You want to earn cash back rewards while building credit
- You don’t want to pay an annual fee
- You have at least $200 for a security deposit
Bank of America® Unlimited Cash Rewards Secured Credit Card
Bank of America® Unlimited Cash Rewards Secured Credit Card
- 28.24% variable based on the Prime Rate Regular Purchase APR
- 28.24% variable based on the Prime Rate Balance Transfer APR
- 30.24% variable based on the Prime Rate Cash Advance APR
At a Glance
The Bank of America® Unlimited Cash Rewards Secured Credit Card offers cash back rewards and credit building tools in one nice, neat package. The card earns unlimited 1.5% cash back on all purchases, with no cap on rewards – all for no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Monthly reporting to the 3 major credit bureaus
- Unlimited 1.5% cash back on all purchases
- Chance at a deposit return with responsible usage
- Regular Purchase APR: 28.24% variable based on the Prime Rate
- Balance Transfer APR: 28.24% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 5% of the amount of each transaction, whichever is greater
- Cash Advance APR: 30.24% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 3% of the amount of each transaction, whichever is greater
- Penalty APR: Up to 29.99%
- Foreign Transaction Fee: 3% of the U.S. dollar amount of each transaction in U.S. dollars
- Late Payment Penalty Fee: Up to $40
- Return Payment Penalty Fee: Up to $29
- Minimum Deposit Required: $300
- You have bad credit or no credit history at all
- You want to earn 1.5% back while repairing their credit score
- You have $300 available for a security deposit
- You don’t want to pay an annual fee
U.S. Bank Cash+® Visa® Secured Card
U.S. Bank Cash+® Visa® Secured Card
- 29.99% variable based on the Prime Rate Regular Purchase APR
- 29.99% variable based on the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The U.S. Bank Cash+® Visa® Secured Card is a secured credit card that offers up to 5% cash back on purchases, reasonable minimum deposit requirements, and more – all for no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Earn 5% back on the first $2,000 in combined eligible purchases each quarter in two categories you choose
- Earn 2% back on the first $2,000 in combined eligible purchases each quarter in one everyday category
- Earn 1% Back on all other purchases
- Earn 5% back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center
- Regular Purchase APR: 29.99% variable based on the Prime Rate
- Balance Transfer APR: 29.99% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either 3% of the amount of each transfer or $5 minimum, whichever is greater
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either 5% of the amount of each advance or $10 minimum, whichever is greater
- Foreign Transaction Fee: 3% of each foreign transaction in US dollars
- Late Payment Penalty Fee: Up to $41
- Return Payment Penalty Fee: Up to $41
- Minimum Deposit Required: $300
- You have bad credit or no credit history
- You want the chance to graduate to a lucrative no annual fee, unsecured rewards card
- You want to earn up to 5% cash back
- You do't want to pay an annual fee
U.S. Bank Secured Visa® Card
U.S. Bank Secured Visa® Card
- 29.24% variable based on the Prime Rate Regular Purchase APR
- 29.24% variable based on the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The U.S. Bank Secured Visa Card is designed for anyone who wants to build or re-establish their credit history. The card allows users to build up their credit score as they make purchases worldwide, and their security deposit even earns interest as long as the card account remains in good standing. The card also comes with various fraud and security protections from Visa – all for no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Zero Fraud Liability - You are not responsible for unauthorized transactions if your U.S. Bank Secured Visa card is ever lost or stolen
- Fraud Protection – detects and notifies you of any unusual card activity to help prevent fraud
- View your credit score anytime, anywhere in the mobile app or online banking
- FlexControl™ - U.S. Bank offers this online tool that can help you avoid interest and late fees with automatic payments that put you in control. It can also help you pay down a balance faster
- Regular Purchase APR: 29.24% variable based on the Prime Rate
- Balance Transfer APR: 29.24% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
- Foreign Transaction Fee: 2% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $41
- Return Payment Penalty Fee: Up to $41
- Minimum Deposit Required: $300
- You're looking to rebuild your bad credit
- You need to establish credit for the first time
- You want a secured card with competitive interest rates
- You want a suite of financial and fraud protections
- You want complimentary access to your FICO Score every month
Green Dot Visa® Secured Credit Card
Green Dot Visa® Secured Credit Card
- 19.99% Regular Purchase APR
- 19.99% Cash Advance APR
At a Glance
The Green Dot Visa Secured Credit Card is a basic credit card intended for people who need to build credit or repair bad credit. This credit card doesn’t require a credit check in order to get approved. Additionally, applicants can know exactly how much their credit limit will be before they apply. Keep reading to learn more about the features of this card.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Ideal for establishing or building a strong credit history
- Good credit or a bank account is not required to apply for a card
- Enjoy the convenience of making security deposits at retail stores
- Use your card everywhere Visa is accepted
- Regular Purchase APR: 19.99%
- Cash Advance APR: 19.99%
- Cash Advance Transaction Fee: Either $5 or 5% of the amount of each transaction, whichever is greater
- Annual Fee: $39
- Foreign Transaction Fee: 3% of each transaction in U.S. dollars
- Late Payment Penalty Fee: Up to $27
- Return Payment Penalty Fee: Up to $27
- Minimum Deposit Required: $200
- You have no credit or bad credit
- You need to build or rebuild your credit
- You want a credit card with some security so as not to fall into debt
American Savings Bank Secured Visa Card
American Savings Bank Secured Visa Card
- 29.24% variable based on the Prime Rate Regular Purchase APR
- 29.24% variable based on the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The American Savings Bank Secured Visa Card is a basic-yet-effect secured credit card for those new to credit or seeking to rebuild a damaged credit score. The card is from American Savings Bank, a Hawaii-based bank.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Repair credit with on-time payments and responsible use
- Potential for a credit line increase with no additional deposit after 7 months
- Chance to get your security deposit returned after as little as 11 months
- Regular Purchase APR: 29.24% variable based on the Prime Rate
- Balance Transfer APR: 29.24% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
- Foreign Transaction Fee: Up to 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $41
- Return Payment Penalty Fee: Up to $41
- Minimum Deposit Required: $300
- You have bad credit or no credit history
- You live in Hawaii
- You already bank with American Savings Bank
- You plan to pay their balance in full
AmTrust Secured Card
AmTrust Secured Card
- 29.24% variable based on the Prime Rate Regular Purchase APR
- 29.24% variable based on the Prime Rate Balance Transfer APR
- 29.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The AmTrust Secured Card is a no annual fee secured card designed to help those with damaged credit – or those new to credit entirely – boost their credit score and advance to an unsecured card. The card minimum security deposit of $300, which could be refunded in as little as 11 months, and the card switched to the unsecured Platinum Card, based on good payment history. The card account charges no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Qualify for a credit line increase in as little as 7 months
- Get upgraded to the Platinum Edition unsecured card in as little as 11 months
- Credit limits between $300 and $5,000
- Regular Purchase APR: 29.24% variable based on the Prime Rate
- Balance Transfer APR: 29.24% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 5% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $15 or 5% of the amount of each cash advance, whichever is greater
- Foreign Transaction Fee: 3% of the transaction in U.S. dollars
- Late Payment Penalty Fee: Up to $40
- Return Payment Penalty Fee: Up to $35
- Minimum Deposit Required: $300
- You're looking to boost your credit score
- You're new to credit entirely or have had credit troubles in the past
- You want to establish good credit habits and graduate to an unsecured card
- You do't want to pay an annual fee
Greylock Federal Credit Union Elevate Secured Card
Greylock Federal Credit Union Elevate Secured Card
- See Terms Regular Purchase APR
- See Terms Balance Transfer APR
- See Terms Cash Advance APR
At a Glance
The Greylock Federal Credit Union Elevate Secured is an attractive secured credit card that has no annual fee but also low APR – a rare feature for cards for poor credit to have. Whether you are looking rebuild or establish your credit history, this card offers a cost-effective way to do so for those in Western Massachusetts.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Establish or improve your credit
- Earn interest on your secured share account
- No annual fee
- Travel and accident insurance
- Regular Purchase APR: See Terms
- Balance Transfer APR: See Terms
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: See Terms
- Cash Advance Transaction Fee: Either $10 or 2% of the amount of each cash advance, whichever is greater (maximum $25)
- Foreign Transaction Fee: Up to 1% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $27
- Return Payment Penalty Fee: Up to $27
- Minimum Deposit Required: $250
- You want to rebuild your credit score with a deposit less than $500
- You're a student who needs to establish a credit history for the first time and are likely to carry a balance
- You don’t want to pay fees for the chance to fix your credit
- You want to earn interest on your security deposit
- You're already a Greylock Federal Credit Union customer
Ocean Bank Platinum Card
Ocean Bank Platinum Card
- 16.99% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 16.99% variable based on creditworthiness and the Prime Rate Balance Transfer APR
- 26.99% variable based on the Prime Rate Cash Advance APR
- 0% for 12 months from account opening date Intro Purchase APR
At a Glance
Establishing a credit history, or repairing bad credit, can be intimidating; while it may appear that building credit is difficult, in reality, there are plenty of credit card offers that can help you achieve your goals. Establish your credit while you shop or travel with the Ocean Bank Platinum Card; for a $500 minimum deposit, you’ll receive a secured credit card designed to make building your credit not only easy, but convenient too.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- $0 liability for unauthorized purchases
- 0% introductory APR on purchases and balance transfers for 12 months
- Mastercard® Airport Concierge - 15% savings on airport meet and greet services
- Intro Purchase APR: 0% for 12 months from account opening date
- Regular Purchase APR: 16.99% variable based on creditworthiness and the Prime Rate
- Intro Balance Transfer APR: 0% for 12 months on transfers made within 12 months from account opening date
- Balance Transfer APR: 16.99% variable based on creditworthiness and the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 2% of the amount of each transfer, whichever is greater
- Cash Advance APR: 26.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $37
- Return Payment Penalty Fee: Up to $37
- You want to establish or build your credit
- You do't want to pay an annual fee
- You will take advantage of a lengthy intro APR for both purchases and balance transfers
- You want the protections and perks Mastercard® offers cardholders
OakStone Secured Mastercard® Platinum Credit Card
OakStone Secured Mastercard® Platinum Credit Card
- 9.99% variable based on the Prime Rate Regular Purchase APR
- 18.99% variable based on the Prime Rate Cash Advance APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Credit lines available from $200 to $5,000! Super Low 9.99% variable interest rate on purchases - with no penalty rate!
- No minimum credit score requirements! We invite all credit types to apply! No processing or application fees!
- Includes Free Real-Time Access to Your Credit Score and Ongoing Credit Monitoring powered by Experian
- Helps strengthen your credit with responsible card use. Reports to three national bureaus
- Fast, easy application process. Choose your credit line and open your Personal Savings Deposit Account to secure your line
- Nationwide program; available in all 50 US states *See Card Terms
- Get a fresh start! A discharged bankruptcy still in your credit bureau file will not cause you to be declined
- See website for additional Oakstone Platinum Secured Mastercard® details
- Regular Purchase APR: 9.99% variable based on the Prime Rate
- Cash Advance APR: 18.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 3% of the amount of each cash advance, whichever is greater
- Annual Fee: $49
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $41
- Return Payment Penalty Fee: Up to $30
- Minimum Deposit Required: $200
- N/A
You've viewed 5 of 78 credit cards
How Do Secured Credit Cards Work?
Secured credit cards are a great option for individuals with no credit history or those trying to rebuild their credit after experiencing financial difficulties. That’s because they require an extra step in the application process. Despite that, secured credit cards function similarly to regular credit cards, with one key difference – the need for a security deposit.
When you apply for a secured credit card, you must provide a cash deposit that serves as collateral for your credit limit. This deposit reduces the risk for the card issuer, as they can use it to cover any unpaid balances in case you default on your credit card payments.
The amount of your security deposit typically determines your credit limit. For example, if you deposit $500, your credit limit will also be $500. It’s important to note that the deposit is refundable as long as you maintain a good payment history and eventually close the account.
Benefits of Secured Cards
When it comes to building or rebuilding credit, secured credit cards offer several advantages that make them a popular options:
- Establish a positive credit history: Making regular, on-time payments and maintaining low credit utilization with a secured credit card can help you build a strong credit profile. This is crucial for obtaining future credit cards, loans, and mortgages and ensuring you get the lowest rate possible.
- Access to credit card benefits and perks: Secured cards let you enjoy the conveniences and perks of traditional credit cards. They can be used for online purchases, car rentals, and hotel bookings. Some secured credit cards even feature rewards programs, allowing you to earn points or cash back on eligible purchases.
- Develop healthy financial habits: Since a cash deposit is required to secure the credit limit, individuals are more likely to spend responsibly and avoid accumulating excessive debt. This valuable lesson in financial discipline and budgeting can contribute to your long-term financial well-being.
Chance to Upgrade
Perhaps the best benefit of secured credit cards is the opportunity to upgrade to unsecured credit after boosting your credit and demonstrating positive credit behaviors.
Some secured credit cards offer automatic upgrades. For example, Discover may upgrade the Discover it Secured Card to a Discover it Chrome Card in as little as six months. However, not every credit card issuer offers a path to upgrading, so it’s important to consider your future credit plans before applying.
Key Features to Consider When Choosing a Secured Card
When choosing a secured credit card, it’s essential to consider several key features to ensure it aligns with your financial needs and goals. Here are the key features to look for:
Eligibility Requirements
- Always ensure you meet the eligibility requirements before applying for a secured credit card.
- Some banks have credit score requirements, while others may have strict rules regarding customer status.
- International students should pay attention to banks’ acceptance policies, as some may require a Valid Social Security Number (SSN) while others accept an Individual Taxpayer Identification Number (ITIN).
Affordable Security Deposit
- The security deposit for secured credit cards acts as collateral for the credit line.
- Many secured credit cards require a deposit of around $200 to $300, while some credit unions may require a lower deposit.
- Consider a card with a low deposit requirement if affordability is a concern.
Manageable Fees
- Most secured cards come with various fees, including annual, late, and APR fees.
- Aim for a secured card with an annual fee of $50 or less, and be mindful of the additional fees for essential services.
Grace Period
- Look for a secured card that offers a grace period between the statement date and the due date to avoid accruing interest on purchases.
Credit Bureau Reporting
- Ensure that the secured card reports to the major credit bureaus (Experian, Equifax, and TransUnion) to build and improve your credit score.
Chance to Upgrade
- Some secured cards offer paths to upgrading to unsecured cards after a certain period, which is beneficial for future credit plans.
Considerations When Choosing a Secured Card
- Automatic upgrades: Some secured cards offer automatic upgrades to unsecured cards after a certain period, providing a path to improving credit standing.
- Building credit: Secured cards are primarily for building credit, so ensure the card reports to major credit bureaus for effective credit building.
- Rewards: While some secured cards offer rewards, the value of these rewards may be minimal compared to the focus on building credit and obtaining a lower APR.
By considering these key features, you can make an informed decision about choosing a secured credit card that best suits your financial situation and goals.
Tips for Using Secured Credit Cards Responsibly
Using a secured credit card responsibly is crucial for building credit and maintaining a healthy financial profile. Here are some tips to help you make the most of your secured credit card:
- Pay your balance in full and on time: Make it a priority to pay your credit card balance in full each month. This not only helps you avoid interest charges but also demonstrates responsible credit behavior to lenders.
- Keep your credit utilization low: Aim to keep your credit utilization ratio below 30%. This means using only 30% or less of your available credit. High credit utilization can negatively impact your credit score, so keep your spending in check.
- Monitor your credit activity: Regularly review your credit card statements and credit reports to ensure all charges are accurate. Monitoring your credit activity lets you immediately detect errors or potentially fraudulent activity.
- Avoid cash advances: Cash advances on your secured credit card often have high fees and interest rates. These transactions should be avoided unless absolutely necessary.
- Upgrade to an unsecured credit card: Once you’ve established a positive credit history, inquire with your card issuer about upgrading to an unsecured credit card. This transition can provide you with increased credit limits and the return of your security deposit.
Secured Credit Card Myths
There is so much information online about secured credit cards. How do you weed out the myths? Financial products may change over time. Credit cards today differ from how they might have been 50 years ago. Along the way, secured credit cards may have picked up a few common myths. Let’s debunk them.
Myth: Applying for a new credit card won’t affect my credit score
Fact: Applying for new credit impacts your credit score, regardless of approval or usage.
Myth: Paying less than the monthly minimum due on a credit card won’t count as a missed payment
Fact: Any payment below the minimum amount could be reported as a missed payment, affecting your credit score.
Myth: Closing unused credit card accounts with zero balances boosts credit score
Fact: Keeping unused credit card accounts open can increase total available credit, positively impacting credit score.
Myth: Carrying a credit card balance helps build credit history
Fact: Paying off the balance in full each month is beneficial for credit history and may increase credit score.
Myth: Having many credit cards improves credit score
Fact: Credit bureaus prefer a variety of credit types, not just multiple credit cards.
Myth: All interest rates on credit card balances are the same
Fact: Different balances may have different interest rates, and payments above the minimum are applied to the highest interest rate.
Myth: High credit limits on credit cards are not beneficial
Fact: Managing high credit limits with low balances can lower debt-to-credit ratio, potentially boosting credit score.
Alternatives to Secured Cards
Not sure if a secured credit card is right for you? There are several alternative options to consider instead of secured cards, including the following:
Debit Cards
Debit cards are popular options for those who prefer convenience and want a safer alternative to carrying cash. Debit cards are payment cards linked to a checking or deposit account. With debit cards, you can only spend what you have in the bank. Because of this, debit cards typically don’t build credit.
That’s not to say that you can’t build credit with a debit card. Banks are increasingly issuing credit-builder debit cards that build credit with every transaction. These cards operate like charge cards in that whatever you purchase is immediately paid off using the account’s funds. When the credit-builder card pays itself back from your account, it reports those payments to the major credit bureaus.
Credit-Builder Loans
Credit-builder loans are designed to help you establish a good payment history. The money you “borrow” is not directly given to you. Instead, it is held in a savings account on your behalf while you repay the loan in monthly installments. Once you repay, the money is released, and your credit report reflects a paid-off loan.
Secured or Debit Card: Which Is Best for You?
Secured credit cards can be a valuable tool for improving your financial standing if you have poor or no credit. By using them responsibly, you can boost your credit score as they report your activity to the three major credit bureaus in the United States. On the other hand, prepaid cards do not report your activity, so they won’t have an impact on your credit score.
If you don’t currently have the necessary credit to qualify for an unsecured credit card, secured credit cards can be a good option. While unsecured cards may offer more attractive APR and benefits, their application process is often stricter, requiring evaluation of personal income, assets, and other factors. However, with time and responsible credit use, you can work towards qualifying for unsecured cards as well.
FAQs
Here are the most commonly asked questions about secured credit cards:
Many secured credit cards do not earn rewards. This is partially because secured cards are designed to help teach sound credit fundamentals and boost credit scores through on-time payments. The other major reason why most secured cards lack rewards is that most applicants place small initial deposits, so the credit limit isn’t sufficient for the kind of spending rewards cards require to be worthwhile.
That said, there are a handful of cards that require a security deposit and offer rewards. The most notable of these cards is the Discover It Secured. The card is like the Discover It chrome Card in that it earns 2% back on gas and dining.
It also comes with the same Discover Cashback Match after year one. The only difference with the secured version is that it requires a deposit of at least $200.
Two other secured cards with rewards are the SKYPASS Visa Secured Card and the LATAM Visa Secured Card. Both cards earn airline miles through purchases, with additional discounts on flights with Korean Air and LATAM, respectively.
As with other rewards credit cards, there are no limits to the total amount of points you can earn with a rewards secured credit card.
Getting more than one secured card might seem counterproductive, but it can quickly boost your credit score. More open credit accounts means the chance to add more on-time payments to your credit report. Multiple secured card accounts will also raise your available credit limit, allowing you to reduce your credit utilization rate. Those two factors comprise the majority of what makes up your FICO credit score.
Since these cards require a deposit that also acts as the credit limit, you can always increase your credit line with an additional deposit. Most issuers have rules about how credit limit increases occur. These may include applications, extra checks, or simply transferring more funds.
Banks and lenders usually require a minimum deposit of around $200 to open a secured account. Some credit unions need as little as $50, on the other hand. On the flip side, most secured cards have a maximum initial deposit of between $3,000 and $5,000.
Again, this amount differs based on the bank and type of secured card. Business secured cards, for instance, have much higher maximum despots – sometimes up to $35,000 or more.
The amount you deposit depends entirely on your unique situation. Those new to credit should start with a small deposit. Once they get the hang of paying the balance in full (and on time), they can increase their deposit as they wish.
Those with higher credit scores can use the flexible deposits on secured cards to quickly increase their available credit. This, in turn, can promptly decrease their credit utilization rate, leading to rapid increases in their credit score.
Like rewards, most credit cards that require a deposit do not earn interest on that deposit. Typically, deposits are held in a joint account by a card issuer. There the deposits sit until the cardholder either closes the account, or the bank claims the money due to non-payment.
Some credit union secured cards, however, do earn interest. While any interest cards accumulate will not be enough to retire on, it is still an excellent perk worth looking out for.
Yes. As with any other form of credit card, you can be denied a secured credit card. Despite the looser restrictions, card issuers wills till look at things like your employment, income, your payment history, and other relevant materials when you apply. If your credit history is full of late payments, you might struggle to get a secured card.
In those cases, unsecured cards like the Group One Platinum Card might make sense. These cards offer an unsecured line for credit for use in the Horizon outlet, which provides a wide selection of products, goods, gifts, and more. While not a Visa or Mastercard, they are still credit cards that report to the major credit bureaus. This can help you rebuild your credit with on-time payments.
No. While some secured credit cards from credit unions may offer a credit line increase after a history of on-time payments, there are no credit cards that offer a security deposit that can be paid over time.
There are no secured American Express credit cards. American Express and Chase are two of the largest card issuers that don’t offer secured credit cards.
- You must be 18 years or older to apply for a secured credit card
- Most credit card companies mail cards out with a timeframe of 7 to 10 business days before arrival. This is good rule to follow when expecting a new credit card in the mail, regardless of the issuer.
- The graduation period of a secured credit card differs from bank to bank. Some issuers, like Discover or Capital One provide graduation in a year or less, while others, like Merrick Bank, may increase your credit limit in as little as 7 months.
- Secured credit cards require a security deposit, typically between $200 to $5,000. Some card issuers offer deposits as low as $50, however, so shoip around if money is tight.
- There are no guaranteed credit cards, but a secured card is much easier to get than an unsecured credit card. This is because the security deposit doubles as the credit line, meaning you are more attractive to lenders.
- You can, yes, but it will only add a debit to your account balance and will not result in a negative credit utilization.
- You can’t pick up a secured credit card in Walmart, Target, or any other store. Secured credit cards require a credit application. For this reason, you can’t purchase a secured card like you would a prepaid or gift card.
- You pay off a secured card in the same way as any other credit card: online or via the bank’s mobile app, or, where applicable, in branch.
- Paying off a secured credit card will just refresh the credit line. You will not receive your security deposit back unless you close the card account and have a $0 balance.
- Yes, at least for a soft inquiry. Most secured cards require a hard pull, or a full pull of your credit report. Some, however, do not require a credit check, such as the OpenSky Visa.
- In some cases, yes. Check the terms and conditions of every credit card before you apply to fully understand what transactions are allowed.
- No. You cannot go over your credit limit with a secured card. Trying to purchase something over your credit limit will result in the sale being denied.
- Most likely no – even if you apply in branch.
- No. A secured credit card is a loan, so the security deposit cannot be garnished for child support or other judgements.
- A secured credit card is a form of loan, a secured loan. But yes, you can still receive a loan with a secured credit card. In fact, if you are new to credit as secured cards can help you establish a new type of credit, helping to boost your credit mix.
Conclusion
Secured credit cards are powerful tools for building credit safely and effectively. By using them responsibly, you can establish a positive credit history, learn financial discipline, and gradually transition to unsecured credit cards with more favorable terms. Remember to research and compare different secured credit card options, consider fees and interest rates, and follow responsible credit practices. With dedication and mindful credit management, secured credit cards can pave the way to a brighter financial future.
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