Secured credit cards are a good way to begin building credit. You must make a deposit before you can make any monthly payments. The ideal situation would be to pay off the balance in full each month. After you close your account, all deposits are refundable. This means that you can continue to use your card for many years without having to pay the balance.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Card Credit Card is a great option to establish credit history, especially if you have struggled with payments in the past. A low deposit of $49, $99 or $200 can be used to start your credit history. Capital One will let you pay the deposit in installments and send your card to you once the payment is made. It's possible to expect a credit limit of $1,000, so it's worth looking into.
Capital One Platinum Secured Card has an initial credit limit $200. With additional deposits of up $800, it's possible to increase the limit. You can also apply to for a higher credit card line after six months by increasing your initial deposit. In fact, you can get a credit limit increase of up to $1,000 after just six months. This is a great way for you to improve your credit score and build credit. Just make sure you make all of your payments on time.
Get it Secured
For anyone who is looking to build a credit history, the Discover it secured credit card is a good option. This card is free of any annual fees and has a minimum balance. You can earn rewards while rebuilding your credit. It is especially useful for students as there is no annual fee, and you can transfer your balance to an unsecured Discover card after seven months of good payment behavior. After you have been responsible with your card you can move to a safer card without having to make a security deposit.
Discover it Secured creditcard also offers $0 annual fees, zero foreign transaction fees, as well as no late payment fees. While the card may charge a fee for late payments, you can also avoid these fees by making all of your payments on time. You won't be charged any international purchases. Balance transfer fees are only three percent of the total balance transfer amount for the first six months, and they increase to five percent after this period. These fees make building credit relatively affordable.
Citi Secured Mastercard
The Citi Secured MasterCard is a great choice among secured credit cards. With a security deposit between $200 and $2,500, this credit cards allows you to build your credit score and learn responsible financial techniques. The card comes with no annual fees and you can use it up to a year. If you feel ready, you can upgrade to a larger limit.
Another notable feature of the Citi Secured Mastercard is its annual fee of zero dollars. This is unheard of with most secured credit cards, which charge high annual fees while offering very few benefits and perks. Many unsecured credit cards have high annual fees and tend to increase in cost after the first year. Even though this card is low in annual fees, it can still add significant amounts to your monthly bills once you use it.