Secured Credit Cards

Compare the most popular secured credit cards below

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Pick Your Best Secured Credit Cards and Use it Wisely

secured credit cardsSecured credit cards can be a useful tool to repair your credit history. Learn how to make the best use of these to get back on track.

Before issuance of a secured credit card, it must be funded with a deposit. This security deposit should be equal to the credit line. Secured credit cards are a fair option if you have been having trouble getting an unsecured card.

You can build a good credit history with your card. This is achieved by making timely monthly payments. Another trick is to keep your balances low relative to the credit limit.

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The Most Popular Best Secured Credit Cards

  1. Capital one secured MasterCard
  2. USAA secured card platinum Visa
  3. Open Sky secured credit Visa card
  4. Citi Secured MasterCard.

How Do Secured Credit Card Work?

A secured credit card is like a driver’s permit. It allows you to first master how to navigate the credit card universe. This prepares you to advance to the next level-an unsecured card. As you choose the best secured credit cards, practice responsible behavior.

Unlike a debit card, the issuer of a secured credit card shares your activity. Info such as your monthly payment history is shared with the major credit bureaus. If your report indicates timely payments you can upgrade to an unsecured card. No deposit is required with an unsecured credit card.

There are some cases where the deposit is saved in an interest –earning account. However, you will find some best secured credit cards which don’t earn interest.

How Much Do You Need To Deposit?

This often depends on the on the card issuer. The Wells Fargo secured card requires a deposit of at least $300. The Capital One secured MasterCard requires a minimum deposit of $200.

Don’t fret if you can’t afford these amounts. There are some card issuers who will allow for deposits in installments. Depending on your financial situation, these deposit requirements will determine which card makes sense to you.

Can I Get Approved for a Secured Credit Card?

Approval will often depend on other criteria other than the deposit. For instance, Capital One requires applicants to have a working bank account.

There are also other cards which have a higher likelihood of acceptance. These are the card issuers who don’t check your credit. A bank account is also not mandatory.

What Are The Drawbacks of a Secured Credit Card?

Use this simple interest calculator to find out the costs of using your unsecured credit card.

Why Many Secured Cards Have Higher APRs Than Unsecured Cards?

A customer who is not creditworthy is viewed as higher risk by the lender. As such the customer will have to establish his credit by paying a premium.  Secured credit cards normally have a higher interest rate than unsecured ones.

The best way to deal with this setback is to keep your utilization ratio low. For instance, your card has a $1,000 limit. You can keep your credit balance to lower than $100. This ensures you are at 10% utilization.

However, emergencies do occur. You may sometimes be forced to exceed this limit. So to be safe, pick a card with the lowest interest rate possible.

Tips for Using a Secured Card Wisely

Your secured credit card has arrived. You are excited and want to begin building good credit. Just before that, read these tips.

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