Do you think that a credit card is out of your reach due to low credit score or zero credit history? If yes, then you should be in the know of secured credit cards; they are an accessible way to build or repair your credit. What’s more, some of these secured credit cards also offer attractive rewards without charging any annual fee.
Here’s a small caveat though; you will need to make a refundable security deposit in order to establish your credit limit. A small price to pay, we say, to build a stronger financial disposition in future.
Here are our recommendations for the best secured credit cards to start building your credit today.
Capital One Platinum Secured Credit Card
This is a simple card that can help you build or rebuild your credit with responsible use. With a minimal deposit of $49, you can enjoy a starting credit limit of $200. If you make your payments on time, your account is reviewed for a credit line increase and refund of security deposit after six months.
Although this card does not promise any attractive rewards, its credit-building features and low deposit requirement is just what you’d really need for an efficient and accessible credit-building. It does not charge any foreign transaction fees, so this is a great option if you travel abroad. The APR rate is quite high though, which is 28.49%.
See also: Secured Credit Card Best Uses
Capital One Quicksilver Secured Cash Rewards Card
This card offers great everyday value with unlimited 1.5% cash-back rate on every purchase and zero annual fees. You may also get a refund of your security deposit (minimum $200) and a higher credit limit within six months, provided you made all your payments in time.
This card is a great choice for those especially new to the world of credit cards. Users can also avail a whopping 5% cash back on every hotel and rental car booking made through Capital One Travel. However, this card has a high APR too, of 28.49%.
Discover it® Secured Credit Card
This is one of the best secured credit cards to earn rewards while building credit. Besides a welcome offer in the first year, this card gives bonus cash back at restaurants and gas stations. It reviews your account automatically and upgrades you to an unsecured card after seven months of responsible card use. Though this card comes at a low cost overall, it carries a 25.99% variable APR.
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Open Sky Secured Visa Credit Card
With an Open Sky Secured Visa Credit Card, you don’t have to undergo any credit check or even have a bank account to qualify for one. Its annual fee is $35, which is quite reasonable for a credit-building card. Also, its APR is much lower than the rate of most other secured cards.
This makes it the preferred card for customers with damaged credit.
Keep in mind though that this card does not have any welcome offer or rewards program. Also, it does not give the option to upgrade to an unsecured credit card after improving your score.
So there you are. Now you can take your pick from our recommendations of the best secured credit cards. Your secured credit card could just be the right pathway to improve credit and build up your finances.
