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.
Unnecessary to say, PNC Bank has been around for years with diverse products and features thrown to the market. Among many products, PNC secured credit card seems to be the contentious one. According to some reviews, that credit card has got a very low score. They earned 1.1 stars out of five. However, the score happened without reason. It is much wiser to get to know the PNC secured credit card cons and pros.
To start with, PNC credit card is pretty easy to get no matter you are new or you have a really poor credit history. Just like the other secured card, it needs a minimum deposit as collateral. You have to submit $200 as the minimum deposit—however, you may upgrade up to $2,000. That deposit will be your PNC credit limit. That is noted as a good thing of PNC secured credit card because $200 stands in the nominal side.
In addition to the fine side of PNC secured credit card, the deposit is also refundable. That means you may refund the account deposit whenever you are done with it. Unluckily, it is not that simple to get the refund. You can’t simply walk to the cashier and ask for the refund. You should make PNC savings account to withdraw your PNC secured credit card deposit. That is surely not that easy because you should open a deposit account aside from the secured credit card.
Coming to the cons, essentially there are many things to talk about. Let’s talk about the annual fee. PNC secured credit card takes $3 every month for an annual fee. You might count how much it charges for a year. Aside from the annual fee, another disturbing issue comes from the fact that they don’t report your card as secured one. Instead, they report it as the standard credit card.
Also, some secured card providers will turn your secured card into unsecured automatically. However, you can’t hope this from PNC secured credit card. You should make application on your own in case you would ike to change into an unsecured credit card—pay attention to your credit score because unsecured credit card needs a high credit score.
Secured credit card applications are same as other credit card applications in that they need your basic financial information, as well as your permission to make a credit check. But they differ in that a secured credit card application will also need your bank account and routing number for submitting a refundable security deposit.
Once you have been approved and put down your deposit, a secured credit card functions much like its unsecured match: You’ll receive a statement every month, and you should try to pay your balance in full every month by the due date to avoid interest charges on new buying.
You will enjoy the security and convenience of a credit card, as well as any benefits or awards that the card might offer. For instance, it can be much easier to reserve a hotel room or rent a car when you have and may use a credit card.
How Do Secured Credit Cards Differ From Debit Cards and Prepaid Cards?
Prepaid cards, secured credit cards, and debit cards all require account holders to provide funds before any buying can be made, but that is fundamentally where the similarities end. With debit and prepaid cards, the amount of every purchase is immediately subtracted from the balance of the account. But with a secured credit card, the money you put up — the refundable security deposit — is uninfluenced when you make a buying and is not used to pay the account balance.
On the contrary, your charges will appear on your monthly record with an amount due for that month. Your on-time monthly payments are discrete from the money you put down initially.
Whereas most debit and prepaid cards usually do not report to credit bureaus, most secured credit cards do. This is why they are a charming way to build credit — your liable use counts for something.
And that is why it is critical that secured credit card users make on-time payments every month in order to build a strong credit history.
The Bank of America BankAmericard Secured Credit Card is styled to help cardholders rebuild or establish their credit. The card charges an annual wage of $39 and wants a minimum security deposit of $300. The APR for buying and balance transfers is 22.49 percent variant.
Deposit return: Bank of America might have a look at your account and return your security deposit. But, as the decision is based on your whole credit history, not all customers will qualify for a deposit return.
FICO credit score access: Bank of America BankAmericard Secured Credit Card owners receive monthly FICO credit score access for free, so you can check your credit score. Cardholders also get mobile and online banking, shopping protection and other client benefits.
Reasonable balance transfer fee: You may transfer your balances from another credit card to the Bank of America BankAmericard Secured Credit Card for a relatively low three percent ($10 minimum) balance transfer fee. Most of the other credit cards require a %5 balance transfer fee.
No awards program or sign-up bonus: The Bank of America BankAmericard Secured Credit Card doesn’t present a rewards program or sign-up bonus.
%0 APR introductory period: Unlike, many other credit cards, the Bank of America BankAmericard Secured Credit Card doesn’t offer a %0 APR introductory period on buying or balance transfers for new cardholders. The standard APR is %22.49 variable.
Annual fee: Although many secured credit cards don’t charge an annual fee, an annual fee of $39 is required for the Bank of America BankAmericard Secured Credit Card.
Bank of America BankAmericard Secured Credit Card Advantages
Bank of America BankAmericard Secured Credit Card owners have access to banking and consumer benefits including:
0 fraud liability (Zero)
The temporal credit card number for internet shopping
You have free access for monthly FICO credit score
Overdraft protection if you connect your card to a suitable Bank of America checking account.
If you do not yet have a credit card, a chase secured credit card can be the answer to your plastic troubles. After all, there are a lot of valid reasons why an unsecured credit card cannot be in your immediate future. A chase secured card may be a great alternative. Wondering if a chase secured credit card is correct for you? Those tips will help you with that.
Do You Qualify For a Secured Card?
One of the surest marks that a chase secured card is correct for you is if you do not qualify for unsecured credit. Whether it is unpaid medical bills or a case of incorrect identity, it might take months (or even years) to maintenance your credit. Why go cardless by the way? A chase secured card may get you over the barriers to come.
Wish to Rebuild Credit?
If you do not have credit or need to rebuild it, a chase secured credit card may be the perfect answer. Unlike prepaid credit cards, a chase secured credit card is noticed to the credit bureaus. That means that your chase secured card activity may help you qualify for an unsecured credit card in the future.
Required To Get Into The Credit Card Swing?
If you want to get into the credit card swing of things, a chase secured credit card is excellent for you. It operates just like an unsecured card. You make buying (up to your credit card limit) and pay the bill when it comes in. The only distinction between the traditional unsecured credit card and a chase secured credit card is that a secured card is secured by a savings account whereas unsecured cards are not. That makes this card excellent for learning the credit card ropes.
Have You Got The Credit Card Blues?
Maybe the most significant factor in determining whether or not you need a chase secured credit card is if you have the credit card blues. What is the credit card blues? Do you find yourself facing disappointment every time you have to rent a car or book a hotel room? Is it from a lack of a credit card? If yes, you may need a chase secured credit card.