Travelers usually look for perks and advantages from credit cards that enhance their travel experience, provide rewards for purchases made with the card, or just allow them to save some money in foreign transaction fees. Whether road tripping across the country or traveling overseas, there can be a lot of reasons you need to travel, and bad or no credit should not mean missing out on awards and savings. If you want a good secured card that meets your traveling necessities, consider these.
AeroMexico Visa Secured Card
U.S. Bank presents several co-branded airlines secured cards that allow you to get miles. If you like to travel with AeroMexico, the AeroMexico Visa Secured card ensures a great opportunity to get miles for your buying while establishing or repairing your credit. Earn 2 miles for every dollar you spend on gas and grocery store buying, and 1 mile for each dollar spent on all other purchases.
LATAM Visa® Secured Card
An alternative offering from U.S. Bank is the LATAM Visa® Secured Card, which presents one mile for each dollar you spend, with no caps on miles and a 5.000-mile bonus when you make your first buying. There is also a 10 percent discount on your first LAN purchase every year.
SKYPASS Visa Secured Card
The SKYPASS Visa Secured Card allows you to gain 1 mile for every $1 spent on buying, with 5.000 bonus miles after your first purchase. Additionally, you get 1.000 bonus miles at renewal every year. Miles can be used for flights and upgrades on Korean Air and SkyTeam partners. Other advantages contain travel accident insurance, auto rental insurance, EMV chip technology, and travel & emergency assistance.
If used responsibly, secured credit cards may help you increase your credit score and improve your financial standing. Secured credit cards are a tool for people who already have credit matters or need to build a credit history, so it is significant to understand exactly how secured credit cards run and which are the best ones available to you.
U.S. News’ Selects for the Best Secured Credit Cards
Discover it® Secured, the best- secured card with cash back awards.
Bank of America BankAmericard® Secured Credit Card, the best-secured card with free monthly FICO credit score access.
Capital One® Secured Mastercard®, the best-secured card with access to a higher credit line after making your first five monthly payments on time.
Citi® Secured Mastercard®, the best-secured with no annual fee.
U.S. Bank Secured Visa Card, the best-secured card with an interest-earning security deposit.
Wells Fargo Secured Credit Card, the best-secured card with no penalty APR.
Bank of America BankAmericard® Secured Credit Card
It is the best-secured card with free monthly FICO credit score access.
Planned for those who are looking to build or rebuild their credit history, the Bank of America BankAmericard® Secured Credit Card is a secured card with a 39 USD annual fee. The card requires a minimum 300 USD security deposit, but Bank of America will periodically review your account and might return your deposit. Cardholder advantages include zero fraud liability, monthly FICO credit score access for free, a temporal credit card number for online shopping security and overdraft protection if you connect your card to a suitable Bank of America checking account.
Good credit is significant for many reasons. Credit card and loan approvals aren’t the only benefits to keeping your credit strong. Always improve yourself to learn some easy ways to establish good credit and financial health.
Help build or re-build your credit history with the U.S. Bank Secured Visa Card. That secured credit card may be used like any other credit card and is accepted worldwide.
How secured credit cards work:
To fund your U.S. Bank Secured Visa Card, you may select to:
- Fund online with your checking or savings account.
- Print an application and post a cashier’s check or money order. Personal checks aren’t accepted.
If approved, the bank will send you a credit card with a credit line the same amount as your deposit.
- The deposit is used to open a U.S. Bank secured savings account to guarantee your card balance may be paid. The savings account is FDIC-insured, gets interested and will not be touched as long as your account remains open and in good standing.
- Buying with the U.S. Bank Secured Visa Card are billed to you every month as with any credit card.
- Payments aren’t automatically deducted from your secured savings account. You are responsible for making at least your minimum payment by the due date.
Secured cards are a major way to build or make better credit. When you take a secured card, you submit a security deposit that typically happens your credit limit. That deposit acts as collateral if you default on your account, but you may take it back if you close your account after paying off your balance. As long as you operate a secured card responsibly — for instance, make on-time payments and use small of your available credit — you can see advances in your credit score. Unfortunately, in addition to the upfront deposit, that credit-building tool may have extra costs, like an annual fee.
You may avoid that expense with 1 of these 6 no annual fee secured cards, which have a variety of uses:
Rewards – Discover it® Secured
The Discover it® Secured is a standout secured card which provides cardholders the opportunity to get cash back while building credit. A cashback program is difficult to find with secured cards, and the Discover it® Secured offers 2 percent cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter.
Low Deposit- Capital One® Secured Mastercard®
The Capital One® Secured Mastercard® presents qualifying cardholders a lower security deposit compared to other secured cards. You will take an initial 200 USD credit line after making a security deposit of $49, $99, $200, determined based on your creditworthiness.
Average Deposit – Citi® Secured MasterCard®
The Citi® Secured Mastercard® requires a 200 USD security deposit, that is typical of secured cards and a fine amount to establish your credit line.
Low APR – Visa® Secured Card from MidSouth Community FCU
Because MidSouth Community is a federal credit union, you have to be a member to qualify for that card.
Unrestricted Low APR – Affinity Secured Visa® Credit Card
The Affinity Secured Visa® Credit Card asks cardholders to join the Affinity FCU. You can qualify through participating organizations, but if you do not, anyone may join the New Jersey Coalition for Financial Education by making a 5 USD donation when you fill out your online application.
Unrestricted Federal Credit Union – Savings Secured Visa Platinum Card from State Department Federal
The Savings Secured Visa Platinum Card from State Department Federal is available to anyone, regardless of residence.
The best awards programs are usually reserved for top tier credit cards that sometimes require “perfect” credit ratings. If you are in the operation of building or rebuilding your credit with a secured credit card, there are very little available that offer any kind of award for using the card.
To gain the most value out of any awards card, you should ay your balances in full every month rather than carry them from one month to another, in order to avoid paying interest. Secured credit cards, particularly, carry higher than normal yearly percentage rates, which may cancel out any rewards earned with your card.
Here are two of the best-secured cards with awards, which not just allow you to build a good credit rating, but ensure either miles, points, or cash back for your purchases.
AeroMexico Visa Secured Card
U.S. Bank presents a few secured cards with travel rewards. The AeroMexico Visa Secured Card presents double miles on gas and groceries, and 1 mile on other buying. Get 3.500 bonus miles when you use your card the first time and get a $99 companion certificate each year. Miles may be redeemed for flights on Aeromexico or with SkyTeam member airlines like Delta, Air France, and Korean Air.
SunTrust Secured Credit Card with Cash Rewards
The SunTrust Secured Card with Cash Rewards awards 2% cash back on gas and grocery store buying up to the first $6.000 spent each year, and 1% cash back on all other buying. You may earn an unlimited amount of cash back in the 1% category and the 2% category resets every calendar year. Cash awards don’t expire and may be redeemed at $25 for either a statement credit or check.
A secured credit card is a kind of credit card that presents you an opportunity to build or rebuild your credit with responsible use. Also, a secured credit card requires a refundable security deposit, that is held as collateral for the account. It is not applied any interest to the security deposit.
How Does The Capital One Secured Card work?
Once you are approved, all it takes to get started is a minimum required a security deposit, which you may pay all at one time or over time. You can make your security deposit over the phone or online. When you have made your minimum required a security deposit, your account will be opened. The security deposit is refundable if you shut your account and pay your balance in completely. Your card status will be regularly declared to the 3 major credit bureaus.
What Is The Difference Between The Capital One Secured Credit Card And A Prepaid Card?
Unlike a prepaid card, a secured card is a real credit card that reports to the 3 major credit bureaus—providing the opportunity to build your credit, with responsible use. Prepaid cards are such as debit cards and can’t help you build your credit because they don’t report to the major credit bureaus.
On My Capital One Secured Credit Card Have The Word “Secured” On It?
No. Your Capital One Secured Credit Card does not have the word “secured” on it. It looks just like other Capital One credit cards.
Could I Be Disapproved For The Capital One Secured Credit Card?
Yes. Like any credit card, there are some conditions that could cause your application for this credit card to be declined. For instance—because a bank account is needed to fund your card, you will be disapproved if you don’t have one.
Most secured credit cards want that you put forth a security deposit that substantially acts as a form of collateral to secure the credit line. Some creditors will compute your credit line based on a percentage of that deposit (allowing you to spend more than you have paid in the deposit); others will spread the credit line equal to your deposit.
Assuming that you maintain the terms of your cardholder agreement, the money will be given back to you when you no longer have the card. If you fail to make payments, the creditor may keep the money you have deposited, and apply it to what you owe. (And report your fault to credit bureaus, and possibly pursue any balance due beyond the security deposit.)
But the similarities generally stop there among secured credit cards. What else do you require to compare to find a secured credit card which works for you?
What money amount are you able to give in for your deposit and will that become your credit limit?
What interest rates valid to the card and how high will they?
Will the card charge an annual fee?
Late payment fees
What will you be charged if you will late on a payment?
What is the amount of time before interest rates apply to the balance you owe.
Do you able to “graduate” to an unsecured card? If yes, does the creditor start evaluating your account after a certain amount of time with responsible habits?
Does the card present any additional uses, such as cash back awards or other features and benefits?
Because applying for credit cards and other loan items composes a “hard inquiry” that will be included in your credit report for up to at least 2 years, it is significant that you pursue only the secured credit cards that match your shorter and longer-term needs.