Building your credit score can be challenging and expensive. It’s crucial to work on your credit score because a low one can significantly impact your ability to obtain credit. From car financing to a mortgage and everything in between, having a poor credit score can be disastrous. Fortunately, credit cards are an easy way to build your credit score, with little risk — especially if the credit card is secured.
If you have a bad or limited credit history and are looking for a way to improve it, a secured credit card could be the solution. Before you dive into the deep end of credit cards, it’s essential to research your options to ensure you secure the most affordable deal. If you’re unsure where to find the best options, we’ve created this list of five of the best-secured credit cards for people with bad credit.
Discover it® Secured Credit Card
The Discover It credit is a great way to build your credit steadily. Featuring no annual fee and the ability to earn cash back, you can establish your credit by providing a minimum $200 security deposit and submitting your bank information for approval. Suppose you pay on time and prove to be a responsible borrower. Discover It will automatically review your activity every eight months to determine if you can transition to an unsecured credit line — which includes a return of your deposit!
Another benefit of the Discover It secured credit card is the ability to earn 2% cash back at restaurants and gas stations on up to $1,000 in purchases each quarter — and unlimited 1% cashback on all other purchases. Plus, as an introductory offer, you can earn an unlimited cashback match on all of the cash back you’ve earned by the end of your first year!
Secured Mastercard from Capital One
The Secured Mastercard from Capital One is a well-known credit accepted throughout millions of locations worldwide. Simple to apply and easy to use, once you make your initial minimum deposit, you’ll receive a credit line of $200. One significant benefit of the Secured Mastercard is that Capital One regularly reports to the three major credit bureaus, so you can improve your credit score if you use your card responsibly. Plus, you can automatically become eligible for a credit increase in as little as six months — no additional deposit needed!
It’s important to note that people with previous bankruptcies may not qualify for Capital One’s Secured Mastercard.
OpenSky® Secured Visa® Credit Card
The OpenSky Secured Visa Credit Card makes opening up a line of credit possible for anyone. With no credit check required to apply and a refundable deposit, the OpenSky card makes it easy to build credit quickly. OpenSky also provides credit tips and credit educational resources to help their customers build up their financial knowledge.
There is an annual fee of $35 to open up an OpenSky Secured Visa Credit Card; however, the typical APR of 17.39% is reasonable for people with bad credit.
First Progress Platinum Elite Mastercard
If you’re looking for a straightforward application process, the First Progress Platinum Elite Mastercard could be the ideal solution! Not only is there no credit history or minimum credit score required, but the application is also online, and you can receive your card quickly with their expedited processing option.
You can provide a fully-refundable deposit of between $200 to $2000 to initiate your credit line and pay off your balance whenever you’d like to receive your guarantee back! The typical APR is 19.99%, and the annual fee is $29.
Applied Bank® Secured Visa® Gold Preferred® Credit Card
The Applied Bank Credit Card is perfect for consumers with poor credit history as it doesn’t require a minimum credit score to apply. In fact, Applied Bank doesn’t even check your credit history when you apply. Fortunately, if you’re a responsible cardholder, you’re in luck — your account information is reported to the major credit bureaus each month, helping you to improve your credit score.
One important thing to note about the Applied Bank Card is that it has an annual fee of $48. Fortunately, this card’s regular APR is low, averaging around 13.04%!
Improving Your Credit Score
If you want to improve your credit score, it’s crucial to use your available credit responsibly. To give yourself the best start possible, you have to research your options carefully. One of the most convenient ways to explore the best available credit cards is to start online. Be sure to compare credit card terms, such as APR and annual fees, to get the best deals possible.
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