A secured credit card works pretty much like any standard credit card, except that the credit card holder is required to pay a security deposit first, which financially protects the lender in case of payment defaults. A key benefit of secured credit cards is that even those with low credit scores can qualify for it. So, if you are looking for a secured credit card, here are our top picks:
Capital One® Secured Mastercard®
This is a partially-secured credit card that has a starting credit limit of $200, with an $0 annual fee and a variable APR of 26.99%. You may be required to pay a refundable deposit of $49, $99, or $200. However, this card does not offer any rewards.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is another great card for those with low credit scores. The minimum deposit required is $200, and the card has no annual fee. The card’s variable APR is 22.49%.
OpenSky® Secured Visa® Credit Card
With this card, you can opt for a credit line anywhere between $200 and $3,000, which is fully secured by a refundable security deposit. The card has an annual fee of $35 and a variable APR of 18.89%. There’s also no credit check done by the lender for this card, so you don’t have to worry about the inquiry impacting your credit score.
Green Dot primor® Visa® Gold Secured Credit Card
For the Green Dot primor® Visa® Gold Secured Credit Card, your credit line is dependent on the amount of savings you have, provided it is between $200 and $5,000. It has a fixed APR of 9.99% and an annual fee of $49.
Discover it® Secured
The Discover it® Secured is a great option for those looking for a secured credit card that also offers rewards. The rewards for this card are in the form of cash back between 1%-2% on purchases. What’s more, the card will also double any rewards you earn during the first year. It has a variable APR of 24.49% and annual fee of $0.
While secured credit cards can be a great way for you to build your credit score, you should ensure that you carefully read the fine print before signing up for the card. All too often, companies that offer these cards end up charging extremely high-interest rates.
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