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NerdUp by NerdWallet Credit Card
NerdUp by NerdWallet Credit Card
- 0% Cash Advance APR
At a Glance
The NerdUp by NerdWallet is a secured charge card designed to help build credit. The card earns 1% cash back on purchases, features a fairly low security deposit requirement, but doesn't provide any route for graduation to unsecured credit.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Build your credit with no credit check or interest charges
- Earn 1% cash back on purchases
- Use rewards to increase your deposit or offset your card bill
- $0 annual fee
- Cash Advance APR: 0%
- Cash Advance Transaction Fee: $3 per ATM withdrawal
- Late Payment Penalty Fee: $5
- Return Payment Penalty Fee: $5
- Minimum Deposit Required: $100
- You are new to credit and want an easy way to begin building credit
- You want automatic repayments to help avoid missed payments
- You want basic cash back rewards without an annual fee
Amazon Secured Store Credit Card
Amazon Secured Store Credit Card
- 10.00% Regular Purchase APR
At a Glance
The Amazon Secured Store Credit Card is a secured retail credit card from Synchrony and Amazon. The card, which requires a $100 minimum deposit, features 2% cash back on purchase, a great fixed APR on purchases, and no annual fee. Successful accountholders might be able to upgrade to the unsecured Amazon Store Card in as little as one year.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Earn 2% cash back at Amazon.com and Amazon physical stores
- Chance to get your security deposit returned after as little as 12 months
- Regular Purchase APR: 10.00%
- Late Payment Penalty Fee: Up to $5
- Minimum Deposit Required: $100
- You shop with Amazon frequently
- You have an active Amazon Prime membership
- You want to build credit while earning 2% back on purchases
- You do't want to pay an annual fee
SDCCU Share Secured Visa Classic
SDCCU Share Secured Visa Classic
- 15% Regular Purchase APR
- 15% Balance Transfer APR
- 15% Cash Advance APR
At a Glance
The SDCCU Share Secured Visa Classic credit card can help you build or repair your credit. It offers a flat, fixed APR for all transactions. Cardholders must submit a security deposit that is equal to 120% of their approved credit limit.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- One low fixed APR for all transactions
- Build or repair your credit
- Security Deposit ensures you wo't spiral into debt
- Use your card just like a regular credit card
- Regular Purchase APR: 15%
- Balance Transfer APR: 15%
- Balance Transfer Transaction Fee: Either $1 or 2% of the amount of each transfer, whichever is greater
- Cash Advance APR: 15%
- Cash Advance Transaction Fee: Either $1 or 2% of the amount of each cash advance, whichever is greater
- Annual Fee: $20
- Foreign Transaction Fee: 2% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $10
- Return Payment Penalty Fee: Up to $20
- Minimum Deposit Required: See terms
- You have no credit or bad credit
- You don’t qualify for an unsecured card
- You deed to improve your credit report scores
- You want a single fixed-rate interest for all your transactions
- You prefer to build credit vs. using a prepaid card or debit card
- You have the funds to pay the required security deposit
First Bank Business Edition® Secured Mastercard®
First Bank Business Edition® Secured Mastercard®
- 27.99% variable based on the Prime Rate Regular Purchase APR
- 27.99% variable based on the Prime Rate Balance Transfer APR
- 28.99% variable based on the Prime Rate Cash Advance APR
At a Glance
The First Bank Business Edition® Secured Mastercard® offers companies the chance to build credit and advance to more lucrative rewards cards. From Missouri-based First Bank, the card features scalable credit, a fixed-rate APR, and a $39 annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Build credit with on-time payments
- Reward yourself with interest earned on your security deposit
- $39 annual fee
- Regular Purchase APR: 27.99% variable based on the Prime Rate
- Balance Transfer APR: 27.99% 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: 28.99% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $15 or 5% of the amount of each cash advance, whichever is greater
- Annual Fee: $39
- Foreign Transaction Fee: 3% of each transaction in U.S. dollars
- Return Payment Penalty Fee: $35
- Over Limit Penalty Fee: $39
- Minimum Deposit Required: $2,200
- You're a business owner with little to no credit history
- You would like a suite of online account management tools
- You can afford the steep security deposit requirements
First Progress Platinum Select Mastercard® Secured Credit Card
First Progress Platinum Select Mastercard® Secured Credit Card
- 19.24% variable based on the Prime Rate Regular Purchase APR
- 25.24% variable based on the Prime Rate Cash Advance APR
At a Glance
The Platinum Select Mastercard® Secured from First Progress is a versatile tool for those looking to advance to an unsecured credit card. Offering a reasonable purchase APR and more control of spending via a refundable security deposit, the First Progress Secured card opens a clear path for customers to build their credit. The card also features the purchasing power and protections users have come to expect from Mastercard, all for an annual fee of $39.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- 1% Cash Back Rewards on payments
- Choose your own credit line - $200 to $2000 – based on your security deposit
- Build your credit score.¹ Reports to all 3 credit bureaus
- No minimum credit score required for approval!
- ¹ Cardholders who keep their balance low and pay their credit card bill on time every month typically do see an increase in their credit score.
- Regular Purchase APR: 19.24% variable based on the Prime Rate
- Cash Advance APR: 25.24% 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: $39
- Foreign Transaction Fee: 3% of the transaction amount
- Late Payment Penalty Fee: Up to $41
- Return Payment Penalty Fee: Up to $30
- Minimum Deposit Required: $200
- You currently have little to no credit history
- You want to establish a credit history
- You're budgeting and prefer the spending limits set by a secured credit card
- You can submit a minimum of $200 for the security deposit
- You may occasionally carry a balance month-to-month
Assent Platinum 0% Intro Rate Mastercard® Secured Credit Card
Assent Platinum 0% Intro Rate Mastercard® Secured Credit Card
- 29.24% variable based on the Prime Rate Regular Purchase APR
- 2924% variable based on the Prime Rate Cash Advance APR
At a Glance
The Assent Platinum 0% Intro Rate Mastercard Secured Card offers a slew of great features not typically found with secured cards. Cardholders enjoy six months of zero interest on purchases with an exceptionally low APR after that. Add to that the features and protections of a full-fledged Mastercard and regular reporting to the major credit bureaus, and you have a versatile tool for building credit.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Full-Feature Platinum Mastercard* Secured Credit Card
- Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
- Good for Car Rental, Hotels: Anywhere Credit Cards Are Accepted!
- 24/7 Online Access to Your Account
- Credit Line Secured by Your Fully-Refundable Deposit of $200 – $2,000 Submitted with Application
- Nationwide program; available in all 50 US states *See Card Terms
- Regular Purchase APR: 29.24% variable based on the Prime Rate
- Cash Advance APR: 2924% 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
- You have poor credit, limited credit, or no credit history at all
- You want a card that reports to the three major credit bureaus regularly
- You want 24/7 online access to your card account
- You have at least $200 for a refundable deposit
- You want both 0% intro APR on purchases and a great low rate after that
Webster Bank Visa® Secured Card
Webster Bank Visa® 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 Webster Bank Visa® Secured Card offers cardholders a $5,000 credit limit. Applicants must submit a security deposit that will equal the amount of the credit limit. This card features one flat interest rate for all cardholders. Additionally, cardholders must pay a $35 annual fee to use this card.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- One flat APR for all
- Credit limit up to $5,000
- Earn interest on your security deposit
- Get a free extra card
- 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 poor credit or no credit
- You need to build or repair your credit
- You prefer to know what your APR will be before you apply
- You do not need a high credit limit
Cleo Credit Builder Card
Cleo Credit Builder Card
At a Glance
The Cleo Credit Builder Card, issued by WebBank, is designed to get your credit where it needs to be. Easy and convenient signup for the secured charge card takes just three minutes through the Cleo App. No hassles or hoops to jump through to get started. Stay focused on boosting your credit score without the worry of credit checks and no interest on purchases.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Put cash into your security deposit, which acts as, and increases, your credit line
- Account status is reported to 3 credit bureaus (Experian, Equifax, TransUnion)
- Cleo Credit Builder Card helps you build up your score over time
- No interest rates or fees
- Must have a Cleo Builder Subscription plan to apply for the Cleo Credit Builder Card
- Minimum Deposit Required: $1
- You want to build or establish credit without the fees of traditional credit cards
- You don’t mind paying a subscription to shape a better-looking credit score
- You would like a realistic line of credit to fit your lifestyle needs via a secured deposit
- You seek the convenience of an AI budgeting assistant in combination with credit building
First Tech® Federal Credit Union Platinum Secured Mastercard®
First Tech® Federal Credit Union Platinum Secured Mastercard®
- 14% to 18.00% variable based on creditworthiness and the Prime Rate Regular Purchase APR
- 15% to 18.00% variable based on creditworthiness and the Prime Rate Cash Advance APR
At a Glance
If you are looking to build or rebuild your credit, then the Platinum Secured Mastercard® from First Tech Federal Credit Union may be the right fit. It offers a low-interest rate and the opportunity to earn rewards on every purchase. Furthermore, there is no annual fee for this card. Keep reading to learn more.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- No fees on foreign transactions or cash advances
- Earn 1 rewards point for every $1 spent
- Low APR
- Regular Purchase APR: 14% to 18.00% variable based on creditworthiness and the Prime Rate
- Cash Advance APR: 15% to 18.00% variable based on creditworthiness and the Prime Rate
- Late Payment Penalty Fee: Up to $25
- Return Payment Penalty Fee: Up to $25
- Minimum Deposit Required: $500
- You need to build up your credit score
- You do not qualify for a non-secured credit card
- You want to earn rewards points on your purchases
- You don’t want to pay an annual fee or fees for balance transfers, cash advances, and foreign transactions
Regions Explore Visa® Credit Card
Regions Explore Visa® 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 Regions Explore Visa® Credit Card is a secured card that serves as a straightforward tool to help you build your positive credit history. You can set your credit limit based on the funds you deposit into your account, giving you control over the direction of your financial future.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Secured by a Regions Explore Card savings account, this can help build credit history with responsible use
- Gain access to Purchase Security and Warranty Manager benefits
- Use with Google Pay™, Apple Pay® and Samsung Pay
- 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 4% of the amount of each transfer, whichever is greater
- Cash Advance APR: 30.24% variable based on the Prime Rate
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Annual Fee: $29
- Late Payment Penalty Fee: Up to $39
- Minimum Deposit Required: $250
- You want a simple secured card to rebuild your credit score
- You do not want to pay foreign transaction fees on purchases while vacationing overseas
- You seek a card with overdraft protection and the ability to monitor on your smartphone using Regions LockIt on the Regions mobile app.
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.
Editorial Disclosure – The opinions expressed on BestCards.com's reviews, articles, and all other content on or relating to the website are solely those of the content’s author(s). These opinions do not reflect those of any card issuer or financial institution, and editorial content on our site has not been reviewed or approved by these entities unless noted otherwise. Further, BestCards.com lists credit card offers that are frequently updated with information believed to be accurate to the best of our team's knowledge. However, please review the information provided directly by the credit card issuer or related financial institution for full details.