Top 3 Secured Credit Cards to Rebuild Credit

Three secured credit cardsHaving good credit is something most responsible people strive to achieve. Good credit opens doors to purchase a vehicle, home, or even a business. For those who have damaged credit or are just starting out with credit, a secured credit card can be a great option.

A secure credit card comes from a financial institution and is meant precisely for people who have bad or no credit. It requires a cash deposit from the individual. This cash acts as collateral for the line of credit, rather than extending it based on previous credit. The deposit amount will usually be the amount of credit given, so a $300 deposit nets a $300 line of credit. The deposit doesn’t function like a bank account, and in most cases it won’t earn interest. A secure card isn’t meant for major purchases. It’s possible to increase the credit limit, but that involves depositing a larger cash amount.

Capital One Secured MasterCard

Capital One secured MasterCard credit card

The Capital One Secured MasterCard is one of the best options for building credit. Beyond the minimum security deposit, there is no application fee. Capital One treats this as an opportunity to help build credit rather than taking advantage of those in a bad situation.

The minimum deposit for this card will be $49, $79, or $200 depending on creditworthiness. The deposit is required within 80 days of being approved for a card, and doesn’t need to be paid off in one payment. The max credit limit for this card is $3000. Some key points to note about this card:

  • Annual Fee: $29
  • 22.9% for purchases, transfers, and cash advances
  • Limit increase with no additional deposits after several months

First Progress Platinum MasterCard

First Progress Platinum Select secured MasterCard credit card

First Progress offers three options for secure credit cards. These are known as the Platinum Select, Platinum Elite, Platinum Prestige, with the best deal being the Platinum Select card<. However, each card offers a different APR and annual fee.

  • Platinum Select: $39 Annual Fee, 13.99% APR
  • Platinum Elite: $29 Annual Fee, 19.99% APR
  • Platinum Prestige: $49 Annual Fee, 9.99% APR

The minimum deposit for this card is $300 with the maximum limit being $5000 over time. This is after on-time payment balances have been made, and you’ve received approval for a raised limit.

First National Bank Secured Visa Card

First National Bank secured Visa credit card

One of the largest family-owned banking company in the United States, First National Bank offers a “Kickstart” Visa card. The card features an initial $300 credit limit, plus:

  • $29 Annual Fee
  • 20.99% APR
  • Limit increases within 7 months without additional deposits

Those who remain in good standing with First National Bank by making on-time payments and actively using their card for 11 months may be eligible for an unsecured card. That means that the entire security deposit will be returned and your credit line will remain.

For more information about secured credit cards and how they work, visit the “Learn at Equifax” center.

Posted on November 10, 2014 by in Credit Cards, , ,

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