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National Bank of Arizona AmaZing Launch Secured Credit Card
National Bank of Arizona AmaZing Launch Secured Credit Card
- 12.99% variable based on the Prime Rate Regular Purchase APR
- 12.99% variable based on the Prime Rate Balance Transfer APR
- 12.99% variable based on the Prime Rate Cash Advance APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Low interest rate for a secured card - at least 2% lower than the national average APR for a secured card
- Establish, or rebuild credit
- Travel Accident Insurance and Auto Rental Insurance
- Visa Zero Liability
- Regular Purchase APR: 12.99% variable based on the Prime Rate
- Balance Transfer APR: 12.99% variable based on the Prime Rate
- Balance Transfer Transaction Fee: Either $10 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 12.99% 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: $25
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $25
- Return Payment Penalty Fee: Up to $25
- Minimum Deposit Required: $300
- N/A
Navy Federal nRewards Secured Credit Card
Navy Federal nRewards Secured Credit Card
- 18.00% variable based on the Prime Rate Regular Purchase APR
- 18.00% variable based on the Prime Rate Balance Transfer APR
- 20.00% variable based on the Prime Rate Cash Advance APR
At a Glance
The Navy Federal nRewards Secured Credit Card is a secured credit card designed for those looking to repair or build their credit while earning rewards. Cardholders earn one bonus point for every dollar they spend on purchases with the card. Rewards points are applicable to travel, merchandise, cash, or gift cards. The card also features no annual fees, no foreign transaction fees, and an 18% APR on purchases and balance transfers.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- No foreign transaction fees
- 1x points for every dollar spent
- Regular Purchase APR: 18.00% variable based on the Prime Rate
- Balance Transfer APR: 18.00% variable based on the Prime Rate
- Balance Transfer Transaction Fee: None
- Cash Advance APR: 20.00% variable based on the Prime Rate
- Cash Advance Transaction Fee: None if performed at a Navy Federal branch or ATM. Otherwise, up to $1
- Penalty APR: 18.00%
- Late Payment Penalty Fee: Up to $20
- Return Payment Penalty Fee: Up to $20
- Minimum Deposit Required: $200
- You're a member of NFCU
- You need to rebuild or establish your credit
- You want to earn rewards for your everyday purchases
- You do't want to pay an annual fee
- You can make a security deposit of at least $200, which acts as the credit line (credit limit)
Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
- 30.49% variable based on the Prime Rate Regular Purchase APR
- 30.49% variable based on the Prime Rate Balance Transfer APR
- 30.49% variable based on the Prime Rate Cash Advance APR
At a Glance
The Capital One Platinum Secured Credit Card is a useful tool for building credit, so long as you make the required, refundable security deposit and follow through with the responsible behavior that credit bureaus tend to look for. You can also gain access to a higher credit line after making your first 5 monthly payments on time, sans any further security deposits. Of course, you can always deposit more money on top of that to further boost your credit line.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- 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
- Enjoy peace of mind with $0 Fraud Liability so that you wo't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
- Regular Purchase APR: 30.49% variable based on the Prime Rate
- Balance Transfer APR: 30.49% 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: 30.49% 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: $49, $99, or $200 based on your creditworthiness
- You want to quickly build your credit using a secured card
- You do not want to pay annual fees or foreign transaction fees
- You want a Capital One card accepted at millions of locations worldwide
Citi® Secured Mastercard®
Citi® Secured Mastercard®
- 27.24% (Variable) Regular Purchase APR
- 27.24% (Variable) Balance Transfer APR
- 29.99% (Variable) Cash Advance APR
At a Glance
The Citi® Secured Mastercard® is a basic secured credit card that provides all the benefits of a Mastercard credit card but with the credit building security of a cash deposit. The card features no annual fee or maintenance fees.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- The Citi® Secured Mastercard® is a no annual fee credit card that helps you build your credit when used responsibly
- Unlike a debit card, it helps build your credit history with monthly reporting to all 3 major credit bureaus. Once available, you will also have free access to your FICO score online
- Use your card anywhere Mastercard® is accepted - worldwide
- A security deposit is required. Once approved, your credit limit will be equal to your security deposit (minimum of $200)
- Get help staying on track with Auto Pay and account alerts
- With Flexible Payment Due Dates, you can choose any available due date in the beginning, middle or end of the month
- Manage your account 24/7 online, by phone, or in our mobile app
- Regular Purchase APR: 27.24% (Variable)
- Balance Transfer APR: 27.24% (Variable)
- Balance Transfer Transaction Fee: Either $5 or 3% of the amount of each transfer, whichever is greater
- Cash Advance APR: 29.99% (Variable)
- Cash Advance Transaction Fee: Either $10 or 5% of the amount of each cash advance, whichever is greater
- Penalty APR: Up to 29.99% variable based on your creditworthiness and the Prime Rate
- 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 $41
- Minimum Deposit Required: $200
- You have no credit history and want to start building up your credit score
- You want free fraud monitoring and the ability to track your expenses online 24/7
- You do not want to pay an annual fee
- You want a card that reports to the major credit bureaus
Citizens Trust Bank VISA Classic Secured Credit Card
Citizens Trust Bank VISA Classic Secured Credit Card
- 22.74% variable based on the Prime Rate Regular Purchase APR
- 22.74% variable based on the Prime Rate Balance Transfer APR
- 22.74% variable based on the Prime Rate Cash Advance APR
At a Glance
The Citizens Trust Bank VISA Classic-Secured Credit Card is an entry-level secured credit card that is a good option for those looking to boost their flagging credit score. The card features a fixed-rate APR on purchases, balance transfers, and cash advances, no foreign transaction fees, and no annual fee. Citizens Trust Bank is a great option for those looking for a straightforward path from no credit or poor credit to good or excellent credit – and the Classic-Secured Card is the first step on that path t
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- No foreign transaction fees
- Rebuild your credit with on-time payments
- Enjoy Visa benefits and protections
- Regular Purchase APR: 22.74% variable based on the Prime Rate
- Balance Transfer APR: 22.74% variable based on the Prime Rate
- Balance Transfer Transaction Fee: There is a $10 or 4% whichever greater balance transfer fee for this card
- Cash Advance APR: 22.74% variable based on the Prime Rate
- Cash Advance Transaction Fee: There is a $10 or 4% whichever greater cash advance fee for this card
- Penalty APR: 22.74
- Late Payment Penalty Fee: Up to $35
- Return Payment Penalty Fee: Up to $32
- Over Limit Penalty Fee: Up to $30
- You're looking to establish their credit score for the first time
- You have hit a few bumps in the road on your credit journey
- You don’t want to pay an annual fee to boost your credit score
- You already have a savings account with Citizens Trust Bank
Union Bank Secured Visa® Credit Card
Union Bank Secured Visa® Credit Card
- 22.74% variable based on the Prime Rate Regular Purchase APR
- 22.74% variable based on the Prime Rate Balance Transfer APR
- 29.00% variable based on the Prime Rate Cash Advance APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Get started on setting up or repairing your credit history with this card
- Free access to your FICO® Score
- Chip security included
- Receive supplemental coverage for damage and theft for your phone when you pay your mobile bill with the Union Bank Secured Visa® Credit Card
- Regular Purchase APR: 22.74% variable based on the Prime Rate
- Balance Transfer APR: 22.74% 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: 29.00% 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: $25
- 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 $35
- Minimum Deposit Required: Disclosed after account opening
- N/A
NYCB Secured Card
NYCB 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 NYCB Secured Card is designed to help those who are either new to credit or repairing damaged credit boost their score and advance to an unsecured credit card in the future. The card requires a security deposit of at least $300, which may be refunded in as little as 11 months, and the card switched to an unsecured card, depending on good payment history. The card has no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- Credit limits between $300 and $5,000
- Qualify for credit limit increases in as little as 7 months
- Possibility to upgrade to an unsecured 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 $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 amount in U.S. dollars
- Late Payment Penalty Fee: Up to $40
- Return Payment Penalty Fee: Up to $35
- Minimum Deposit Required: $300
- You want to boost your credit score but have had credit issues in the past
- You are determined to establish good credit habits and graduate to an unsecured card
- You don’t want to pay an annual fee
Key Secured Credit Card
Key Secured Credit Card
- 28.24% variable based on the Prime Rate Regular Purchase APR
At a Glance
Ideal for those building or rebuilding their credit, the Key Secured Credit Card? can set your financial reputation on the right path as long as you maintain smart spending habits.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- No annual fee
- This card reports your history to credit bureaus
- Account is reviewed twice a year to determine if you're eligible for an unsecured credit card
- Temporary lock feature allows you to freeze card activity if you misplace it
- Regular Purchase APR: 28.24% variable based on the Prime Rate
- Foreign Transaction Fee: 3% of the amount of each transaction in U.S. dollars
- Late Payment Penalty Fee: Up to $40
- Minimum Deposit Required: $300
- You have little or no credit history
- You have a damaged credit score that you want to rebuild
- You have not had a credit card before
- You want to graduate to an unsecured credit card account
- You don’t want to pay an annual fee
SunTrust Secured Credit Card
SunTrust Secured Credit Card
- 19.99% variable based on the Prime Rate Regular Purchase APR
- 19.99% variable based on the Prime Rate Balance Transfer APR
- 24.99% variable based on the Prime Rate% Cash Advance APR
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- Earn 2% cash back on up to $6,000 spent annually on gas and groceries
- Earn 1% unlimited cash back on all other qualifying purchases
- Earn interest on your security deposit while you build your credit
- Get set up with SunTrust Loyalty Cash Bonuses
- Regular Purchase APR: 19.99% variable based on the Prime Rate
- Balance Transfer APR: 19.99% 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: 24.99% variable based on the Prime Rate%
- Cash Advance Transaction Fee: Either $10 or 4% of the amount of each cash advance, whichever is greater
- Annual Fee: $32
- Foreign Transaction Fee: 3% of the transaction amount in U.S. dollars
- Late Payment Penalty Fee: Up to $39
- Return Payment Penalty Fee: Up to $39
- Minimum Deposit Required: $300
- N/A
Bank of America® Customized Cash Rewards Secured Card
Bank of America® Customized Cash Rewards Secured 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® Customized Cash Rewards Secured Card is a cash back rewards and secured credit card that provides up to 3% cash back on purchases for no annual fee.
- Best Benefits
- Rates & Fees
- Why Should You Apply?
- 3% cash back in the category of your choice: gas and EV charging, online shopping, cable, phone, and internet plans, select streaming, dining, travel, drug stores, or home improvement/furnishings
- 2% cash back at grocery stores and wholesale clubs
- Unlimited 1% cash back on all other purchases
- No annual fee
- 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 3% 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 5% 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 transactio
- 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 up to 3% back while building your credit score
- You have $300 available for a security deposit
- You do't want to pay an annual fee
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.