The All-time best-secured credit card can help you to build credit in 2019 as there is No signup Fee and it is great for rebuilding credit. These are the top most secured credit cards. If you have a poor or bad credit score, then lenders will be reluctant in issuing you a credit card. One of the best ways to rebuild credit is to choose a secured credit card.
What is a Secured Credit Card?
A secured credit card is somewhat similar to a debit card. Before applying for one of the top secured credit cards, you will be required to pay a security deposit in order to be eligible to receive the secured credit card. More often, this security deposit is what the credit limit of your secured credit card will be or may be a percentage of the security deposit will be your secured credit card credit limit. The determination of credit limit for a secured credit card is entirely dependent on the secured credit card lender.
How can a Secured Credit Card Help Rebuild Credit?
As the credit limit of a secured credit card is already paid by the credit card owner as a security deposit, there is no actual credit being generated and hence no requirement for credit repayment. The only requirement is to renew the security deposit once you cross your credit limit so as to keep using the secured credit card.
With no credit being generated and no monthly repayment of credit required, there will be no negative credit score in a secured credit card. Moreover, the more you use your secured credit card, the more payment history will be generated. Most secured credit card companies update the credit history of its users to all the major credit bureaus on a monthly basis. With no negative credits acquired and more credit history, you will be able to regain your lost credit score.
Hence, this is how you can make use of the most secure credit card in order to rebuild credits. Not only to rebuild credits, if you haven’t owned a credit card in the past then also you can choose one of the best secured credit cards to build credit in the first place. You can also check best business credit cards, best balance transfer credit card in 2017.
Top Secured Credit Cards in 2019:
Now that you know what a secured credit card is and how you can use best secured credit card to rebuild credit score, below are some of the best secured credit cards to build a credit score.
The Capital One Secured MasterCard is one of the best secured credit cards to build credit. Below are some of the key highlights of the Capital One Secured MasterCard:
- Secured Credit Card with no annual fee.
- 99% variable ongoing APR [applicable for cash advances as well.
- Your credit history is regularly reported to all the major credit bureaus.
- Low-security deposit. Depending on your existing credit score you will have to pay a deposit of $49, $99 or $200 for a credit limit of $200.
- If you cannot pay the security deposit in advance, you can opt to pay the amount as installments. However, your credit card will only be issued after you successfully complete the installments of your security deposit.
Discover it Secured credit card is also one of the top secured credit cards to rebuild credit. Here are some of the features offered by this credit card:
- Security deposit of $200.
- No annual fee.
- 99% variable ongoing APR.
- No late fee or increase in APR if you miss your payment the first time.
- After a period of 8 months, automatic review process to upgrade your credit card to an unsecured credit card. And if you manage to qualify, the security deposit will be refunded.
- 2% of total transaction amount will be provided as cash back when the credit card is used in gas stations and restaurants until a combined total of $1000 in purchases is reached every quarter.
- 1% on all other purchases.
- By the end of the initial one year, Discover it will match a dollar for each cash back point that you have earned in that one year [only for the first year].
- Free monthly statements.
- Monthly reporting to all credit bureaus.
The OpenSky Secured Visa credit card is among one of the best secured credit cards for bad credit. And here are some of the best features of this credit card:
- No credit check.
- 14% ongoing APR.
- Annual fee of $35.
- Security deposit of minimum $200 and maximum $3000.
- You do not have to link your bank account as you can pay credit bills using your credit card or as a cheque, money order or even by wire transfer.
The Digital Federal Credit Union Visa Platinum Secured Credit Card is also a very popular secured credit card with no annual fee. Below are some of the main features offered by this credit card:
-No annual fee.
-5% variable APR on purchases and cash advances.
-0% variable APR on penalty.
-No fee on balance transfers and cash advances.
-No minimum security deposit. Security deposit equal to your credit limit has to be made.
The U.S. Bank Secured Visa credit card is also one of the best secured credit cards to build credit. Here are some of the main highlight features of the U.S. Bank Secured Visa credit card:
- Annual fee of $29.
- No APR will be charged as a penalty if you miss your first payment.
- 3% of total amount as the fee on foreign transactions.
- Minimum security deposit of $300.
- Maximum possible security deposit of $5000.
- Ability to upgrade to an unsecured credit card after one year [depends on your credit history in the first year].
Those were some of the most secure credit card options for people with poor or bad credit score. Hope you found the list of the top secured credit cards helpful. In the case of any queries, please do leave them as comments below for us to help you out.