Top three secured credit cards that you should know
One of the best ways to build credit history is to take up a secured credit card and keep up with the financial obligations without a single glitch. The one thing about getting a secured credit card is that they are open to all types of applicants without any restriction on applicants with a bad credit and by signing up a deposit they become eligible to a credit limit allowed by the credit card issuer. The credit card issuers make it their commitment to send across all the financial details of a secured credit card holder to the three major credit reporting bureaus to show, among other things, the stability required for building up credit score.
Capital One® Secured Mastercard®
This secured credit card is a great pick for those who want to go with a low deposit, and there are no annual fee charges associated with the card. Applicants with a credit score between 390 and 629 will be eligible for the card, and regular APR on the card is variable at about $24.99. This card offers great credit building advantage when the card holder sticks to the policies of responsible use agreed upon in the application agreement. The credit building depend solely on how responsibly the card holder uses the card and the report is shared with the three major credit reporting bureaus on a regular basis by Capital One. The applicant is entitled to a credit line that is around $200 when they first sign up with security deposit varying between $49 and $200, depending on the creditworthiness of the applicant. Without having to add in additional deposit, and by sticking to the payments and dues of the credit card consistently for a period of five months, the card holder will be entitled to a higher credit line. This credit has international use access, and can be accessed both online and through the use of apps.
Individuals who are rebounding from major financial setbacks and bad credit damages will not be advised to take this card, but will be a perfect fit for those who are just venturing into the credit card products and have no credit history yet.
Discover it® Secured Card
This is one of the best secured credit cards that offers the advantages of rewards, and are open to those with a credit score between 350 and 629. There is no annual fee charge on the card, and is a great fit to help build your credit score provided you strictly comply with the responsible use requirements. This Discover It credit card has a lot of cash back rewards amounting to a flat 1% on all forms of purchases, and a benefit of around 2% cashback when the transactions involve both gas and restaurants and reach the amount of around $1000 per quarter. At the end of the first year the card holder is entitled to a dollar to dollar match wherein all the points accumulated through cashback is credited in double. The signing up of a security deposit is not only refundable but also allows for the credit card issuer to offer a line of credit beginning at around $200 based on the issuer’s discretion in terms. The applicant will also be required to submit information regarding their bank accounts when signing up the security deposit. Once the card holder keeps up the responsible use requirements for a period of 8 months without any inconsistency, then Discover It will automatically reassess the card holder’s commitment and decide on the transition to an unsecured credit line with an extension in the credit limit.
The only catch that comes with this particular credit card is that the applicant should pay up the security deposit via a bank account and if you do not have an account, then you will not be eligible for the credit card. The other hindrance is that some applicants may not be able to afford the $200 sign up deposit, while some others find the $2500 credit limit very less for their needs.
OpenSky® Secured Visa®Credit Card
Applicants with the poor to average credit score rating between 350 and 689 will be eligible to apply for this card, and this credit check is not mandatory as Open Sky focusses on catering to those with a bad credit or do not have a bank account. The credit line sanctioned on the card is purely dependent on the amount you sign up as security deposit, and can start from $200 onwards. This secured credit card allows you to build up your credit score efficiently in just a period of 6 months, and OpenSky aids in reporting the financial statistics to the three major credit reporting bureaus on a regular basis. Apart from providing credit score tips, OpenSky has an open forum on social media, thereby allowing their customers to interact and share experiences.
