Secured credit cards require a cash deposit to activate. Once you have made the cash deposit, your secured card will become an unsecured creditcard. This card allows you to make purchases and pay back. However, if you are late in making payments, interest will apply and issuers may pull the deposit from your account. In order to avoid a negative credit score, you should be on top of your minimum monthly payment.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is a secure credit card. This card doesn’t require collateral. This is an advantage because it maintains your credit history while helping you to repair your credit. Additionally, you can make regular payments and avoid overdrawing the account. You will notice improvements in your credit score in less than three months. You can combine this card with another secured credit card, such as the Discover It Secured Credit Card.
Capital One Platinum Secured Credit Card gives you a credit limit up to $1,000. It also allows you to open a credit account of up $5,000. Credit score is affected by your credit limit. Therefore, you need to carefully assess your credit utilization ratio. It should be lower than 30%. After you have built a credit history, you will be eligible for unsecured credit cards that offer better perks. This card should not be used to improve your credit score or get better perks.
Discover it Secured Credit Cards
For those who wish to rebuild credit without paying high fees, the Discover it Secured Credit card is the best option. There's no annual fee. You can spend as much as you like. You can even earn rewards while building up your credit history. Discover it Secured Credit Card provides the best of both worlds, with a low-interest rate. This card can be used to pay your monthly expenses, and you will also earn rewards for every purchase.
The Discover it Secured Credit Card has a generous welcome bonus as well as a cash back program. This card is perfect for students or people with limited credit histories. You can establish strong credit without having to file a credit check or go through an application process. Discover will review your account after seven months and return your deposit if your payments are not being made on time. This card offers many perks, including rewards, for paying your bills on-time and with financial responsibility.
nRewards Secured Card Credit Card
Bad credit people will love the nRewards Secured Credit Card. The card is issued to people with a certain amount of money as collateral for their credit limit. This card can be used to improve credit scores by those with poor credit and no credit. The card reports credit repayment behavior to the major credit reporting agencies. This card is low in interest and can be a great choice for people looking to improve their credit score.
There are many secured credit cards, but the nRewards Secured Credit Card stands out because of its low annual fees and security deposit. It is an attractive option for those with limited funds or those looking to build credit. Cardholders with less than perfect credit are able to use it because there is no annual fee, and they can also deposit $200. And with a $200 security deposit, it's also competitive with other secured credit cards.