Suffering from poor or no credit history? Now is your chance to build or rebuild your credit with the top secured credit card options. While those with poor credit often have little chance for acceptance of a new credit card, secured cards are an alternate option that makes you little risk to a credit lender. Rebuilding with a secured card is incredibly easy because it allows you to increase your credit score without the risk of ruining it. If you are interested in learning more about secured cards, check out these most frequently asked questions about the top secured cards to help rebuild credit.
Secured cards allow you to rebuild your credit by establishing a better credit history. As you make payments to your secured card in full and on time, you are repairing your credit history. Using your card and paying the amount back looks good on your report and shows credit lenders that you are making a change for the better. With multiple cards, you can go from poor to fair credit in no time.
With a secured credit card, your card is backed by your savings as collateral, so in the event that you can’t pay your used credit back, it doesn’t really matter, because the card is mostly paid for. The money for the card is deposited into an account that backs the amount of the card.
The top secured credit cards include the secured Mastercard from Capital One, OpenSky and Discover It. These cards offer the best rates and the best chance to rebuild your credit from the ground up. Apply for these cards easily online and see how much you are approved for!
The amount of credit you’ll qualify for depends on the amount you deposit as well as your credit history. You could have a secured card with as little as $300 or over $3,000 – it all depends on the credit card company offering and the secured card you choose.
Many secured credit cards do come with annual fees. The cost of these fees will vary from credit card to credit card. However, you can get credit cards with no annual fees. A security deposit may also be required but if your credit is decent enough you may be able to get the deposit refunded.
The OpenSky secured Visa credit card requires no credit check, but a $200 fully refundable deposit requirement. The company has had tremendous success building credit scores as 99% of OpenSky customers who had no credit score, were able to build one in just six months. The annual fee is a low $35, and the variable APR currently sits at 18.64% - lower than most.
The Discover It secured credit card works just like a regular credit card. You’ll make a small security deposit, but the amount can be refunded. The card will help you rebuild with all major credit bureaus, and Discover It will even provide you with a FICO credit score for free every month. With this card there are no annual fees and the variable APR goes as low as 24.24%. Discover It is also one of the few secured cards that offers cash back rewards on all your purchases, affording you up to 2% cash back on gas and restaurants, as well as 1% on everything else.
Capital One offers a secured Mastercard that is perfect for rebuilding your credit. It has no annual fee and purchase rates go as low as 24.99% APR but are variable, so they can go lower or higher. With the minimum required security deposit, you can get a credit line of up to $200, and with a higher deposit, you can get even more. The card also comes with a number of benefits including 24-hour roadside assistance, 24-hour travel assistance, auto rental insurance, and even price protection services.