People with bad credit have a hard time when they are dealing with financial institutions. Lenders will in most cases refuse to give loans when your track record with other lenders is not good. Even after you pay off your loan, your record is still available and it is important to find a way to fix it. You will not get a credit card from several financial institutions when you have bad credit.
It will be beneficial to know the best secured credit cards for bad credit so that you can apply and get credit for your needs. Even with bad credit, you still need to be able to afford some basic items and this is why you need to apply for a secured credit card. You can get a credit card with low fees and rates so that you can repay and rebuild your credit.
- 1. OpenSky Secured Visa Credit Card
- 2. Secured Mastercard From Capital One
- 3. Discover it Secured Credit Card
- 4. Citi Secured Mastercard
- 5. Green Dot Primor Gold Secured Credit Card
- 6. Unity Visa Secured Credit Card
- 7. U.S. Bank Secured Visa Card
- 8. BankAmericard Secured credit card
- 9. DCU Visa Platinum Secured Credit Card
- 10. Wells Fargo Business Secured Credit Card
The 10 Best Secured Credit Cards For Bad Credit
Many financial institutions offer secured credit cards in the market today. Some have low rates and fees that will help anyone with no or bad credit to improve their credit scores. You can easily apply for one and be able to shop for what you need and pay so that you can get other better rates.
The following are the top ten best secured credit cards for bad or no credit:
1. OpenSky Secured Visa Credit Card
If you have bad credit, you need a credit card that will help you rebuild your credit so that you can get better rates with other cards. You will not require a credit check when you are applying for this card and therefore they will not ask you for a credit report. Although you will not get any rewards with the card, you can use it and repay so that you have better credit for better loans in the future. It will not report your credit movement to the credit bureau agencies, giving you a chance to improve your credit.
2. Secured Mastercard From Capital One
If you need a card with a low deposit, this is the ideal credit card for you. It does not have an annual fee and you will get a minimum deposit based on your creditworthiness. After you apply for the card, you will get it in 2-3 weeks and they check your account regularly. This is to see the activity so that you can improve slowly as you build your credit. If you make the first five payments on time, capital one will give you a higher credit limit so that it can act as an incentive.
3. Discover it Secured Credit Card
With the discover it credit card, you can make purchases and also earn cashback rewards. You can earn 2% back when you spend up to $1000 in combined spending in gas stations and restaurants. Other purchases will earn you 1% cashback and in the first year, the card will match the rewards you got in the year. You can also monitor your credit for free with this card because they will send you alerts regularly. In your monthly statement, you will get to look at your credit score. This will help you know when you have improved and can apply for higher credit limits.
4. Citi Secured Mastercard
With no annual fee, this credit card gives you a chance to build your credit so you can apply even with low credit. After you have been approved for the card, you can choose to deposit between $200 and $2500 so that you can get started. With proper management and on-time repayment, you can get better credit in a few months. You may not get cashback rewards or any other notable perks when you have this card but you can improve your credit score and get better deals after a few months.
5. Green Dot Primor Gold Secured Credit Card
This is one of the best secured credit cards for bad credit because it has a low APR so that you can make more purchases and you can pay back the loan easily. Even with bad or no credit, you can still get approval for it and you can use it on several purchases. You will however have to pay an annual fee when you have this card. With this card, you will pay a deposit of $200 and your first credit limit will be $101. With timely payments, you can build your credit so that you have a higher limit. The card will report your movement to all three credit reporting agencies so that you can also get better credit from other financial institutions.
6. Unity Visa Secured Credit Card
If you apply for the unity visa credit card, you will get approval despite the state of your credit. You can also get help to consolidate a high-interest debt at a lower rate. Also, you will pay a low APR on balance transfers for six months before it goes back to the fixed rate. You can pay a transfer rate of either $10 or you can pay 3% of the amount of every transfer whichever is greater. With this credit card, you will pay an interest rate of 17.99% on purchases and balance transfers after the introductory offer after the first six months.
7. U.S. Bank Secured Visa Card
With the US bank credit card, you have an opportunity to build your credit as you continue to repay your credit card on time. You can reach a limit of up to $5000 as you continue over a period. They will periodically review your credit activity so that you can get a higher limit. Your credit behaviors will also be reported to credit reporting agencies so that other financial institutions will see your activity and offer you credit. The card attracts an interest rate of 23.99 variables on balance transfers and purchases.
8. BankAmericard Secured credit card
If you have a minimum deposit of $300, you can start building your credit with this credit card. You will not pay an annual fee and you can get different credit-building tools that will ensure you get better credit in the future. The interest rate is a 22.99% variable on purchases and balance transfers and even with thin credit lines or imperfect credit, you get approval. Every month, you will get a free credit card statement with your updated credit score. You will also get alerts about your account and you can access your account from your smart mobile decide at any time you want.
9. DCU Visa Platinum Secured Credit Card
If you are looking for a credit card with low-interest rates, this is the ideal one for you. It gives an APR variable of 11.50% and if you are faithful with your payment monthly you can build your credit fast. It has a minimum security deposit of $500 when you are opening the card. You will get some perks like travel insurance and auto collision damage when you have this card. There are several ways you can join this card and there are some employers that can contribute to as low as $10.
10. Wells Fargo Business Secured Credit Card
With this credit card, you will not pay an annual fee. If you need a card with a low deposit, it is the ideal credit card for you. It does not have an annual fee and you will get a minimum deposit based on your creditworthiness. After you apply for the card, they check your account regularly so that you can qualify for higher limits. This is to see the activity so that you can improve slowly as you build your credit.
What To Consider When Picking A Secured Credit Card
Even with bad credit, you can get a secured credit card so that you can make more purchases. You must choose the right one for you when you are applying for a credit card. The following are some factors to what out for when you are applying for a credit card
- Annual fees: it would be best if you choose a credit card that does not have an annual fee. Some secured credit cards have upfront fees that you will have to pay if you want to get the card. Ensure that you will be able to afford the fees as well as repaying the credit you have.
- Minimum deposits: check the minim deposit amount that the card will give you when you are getting started. It might be smaller in the beginning but you should compare it with other credit cards so that you can get the best option for you.
- Fees: ensure ha you check the fees that you will pay when you have the credit card. Look at the annual fee and any other hidden fees that you will pay. To find this out, read the fine print carefully so that you have all the information at hand before you can apply for the card.
- Reports to credit bureaus: a major reason why you are applying for this credit card is that you want to improve your credit history. This means that you need to keep a great track record when you are repaying the card. If the credit card reports your activity to credit agencies, your information will be available to other lenders. This means that if you manage your account well, you can build your credit and get approval for higher limits and other credit cards you want.
As you apply for the secured credit card, ensure that you check the details of the card well. This will help you build your credit score to qualify for a better limit in the future. With the best secured credit cards for bad credit, you will have a chance to get approval for a credit card that can help you. Ensure that you keep up with your payments to have a better chance with other lenders. You can apply for other cards with better terms when you have better credit.