Secured credit cards are a perfect option for those who have an issue getting approved for a credit card because of previous credit faults or lack of credit history. A secured credit card is easier to be confirmed for because you pay a security deposit to “ secure ” the credit limit. As long as you are on time with payments, your security deposit will be refunded to you when you switch off your account.
The best secured credit cards submit a variety of advantages for cardholders from low-security deposits to awards and even the ability to have a 5-figure credit limit. When you are selecting a secured credit card, be sure you pay attention to the pricing, particularly the annual fee since it’s unavoidable. Ideally, you will pay your balance in full to avoid interest charges but go for a lower interest rate if you think you will end up carrying a balance.
Best for Military; Navy Federal nRewards Secured Visa
Navy Federal nRewards Secured Visa
Courtesy of Navy Federal
The Navy Federal nRewards Secured Visa is one of the rare secured credit cards that pay awards – one point for each dollar you spend to be exact. You may redeem your points for merchandise, gift cards, statement credit or cash back.
Best for Boosting; First National Bank Secured Visa Card
First National Bank Secured Visa Card
Courtesy of First National
With the First National Bank Secured Visa Card, well credit behavior pays off. You will qualify for a credit rise in as little as 7 months if you make all your monthly payments in time. Then, you can qualify to get your security deposit back in as little as eleven months. Again, you will have to provide a good credit history to boost your account to an unsecured credit card. You may open your account with a security deposit between 300 USD and 5.000 USD.
Many people want to find an American Express secured credit card, as American Express is known for their rich rewards. American Express is both a card issuer and a payment network, they don’t issue a secured credit card currently. But other financial foundations do offer a secured credit card that runs on the American Express payment network. Additionally, American Express does offer an alternative to a secured credit card.
Secured Credit Cards That Work On The American Express Payment Network
There is currently just one secured credit that works on the American Express payment network, keep in mind that this card isn’t issued by American Express (much like cards that work on the Visa payment network are not issued by Visa).
USAA Secured Platinum Card
Minimum Security Deposit; 250 USD
Maximum Security Deposit; 5,000 USD
Interest Rate; 9.90 Percent
Introductory Interest Rate; None
Grace Period; 25 days
Foreign Transaction Fees; 1% of the per transaction in U.S. dollars
Annual Fees; 35 USD
Application Fees; None
Rewards Program; None
Signing Promotion; No
Interest Earned on Security Deposit; Yes, the security deposit is placed into a USAA CD for 2 years.
Alternative To A Secured Card in American Express
Instead of offering a secured card such as other card issuers, American Express gives a number of prepaid cards. These cards don’t build your credit history like secured cards, however, they do have lower fees than some other secured cards. Here is the list of the reloadable prepaid cards American Express offers:
Serve (there are actually 6 different flavors in total)
Clients who apply for secured cards usually have lower credit scores, so they are viewed as riskier borrowers. And, greater risk often means higher APRs. But, not all secured card charges high interest. In fact, you may find top-notch cards which also have low APRs.
Take a look and choice a secured card with low APR that’s best for you.
Applied Bank® Secured Visa® Gold Preferred® Credit Card
That secured card may help you rebuild your credit with an initial deposit of 200 USD to 1,000 USD.
*48 USD annual fee
*9.99 Percent fixed APR on purchases
*Credit limit up to 1.000 USD depending on deposit
SDFCU Savings Secured Visa Platinum Card
If you are looking for a low-APR card, you can end your search with the SDFCU Savings Secured Visa Platinum Card. It presents a very low 14.24% variable APR for buying, balance transfers, and cash advances. It is also cheaper than its competitors, charging no annual fee.
To have that card, you have to become a member of the State Department Federal Credit Union. To do that, you may join the American Consumer Council for 5 USD. You also have to open an SDFCU savings account with a minimum of 1 USD. Learn more about how to join SDFCU.
DCU Visa® Platinum Secured Credit Card
This credit card does not have the lowest interest rates but it does have one of the lowest minimum deposits — $5. It presents a respectable 13.5 percent variable APR across the board and has not an annual fee.
You may get this card by joining the Digital Federal Credit Union. For that, just join Reach Out for Schools for 10 USD when you open a DCU account. Then deposit your DCU savings account with a minimum of 5 USD. In total, it will cost as little as 15 USD to open your secured card.
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.