If you are looking for a way to rebuild your credit, and your options are limited, a secured credit card might work well for you. You will have to pay some deposit upfront which will be used as collateral for your future payments, but you’ll be able to benefit from many of the bells and whistles modern credit cards offer.
How to Choose the Right Secured Credit Card?
There are a few factors you should consider, including:
- Fees – how much does it cost to own some card. Look into the annual fee and deposit amount, as well as balance transfer and foreign transaction fees (if you plan to travel outside of the U.S.)
- Interest – how much interest the bank will charge for the card usage. Bear in mind that secured cards typically come with high APRs so you will be better off paying your balances in full and on time.
- Credit Reporting – will the bank report your spending habits to credit bureaus, so you could eventually transition to a regular, unsecured card?
- Yield on Deposit – will the bank pay you an annual yield on the money held as collateral in the savings account? You won’t earn a fortune from your deposit, though.
Wallet Weekly’s Way – Less is More
The Top 2 Secured Credit Cards Are…
If you just look into fees, this is the card for you. It has no annual, balance transfer and foreign transaction fees. The Capital One® Secured MasterCard®, however, comes with a rather high variable APR of 24.99% on purchases and balance transfers. CaptialOne on its end will regularly be sharing your account activity and payments with three major credit bureaus, including TransUnion, Equifax, and Experian. Also some benefits and perks come included, such as travel and auto rental insurance, price protection, and fraud liability.
» Learn more and apply for the Capital One® Secured MasterCard® today!
This card has an annual fee of $49, while offering lowest APR on a secured card – it’s 9.99%. On the downside, the card has no balance transfer option, and foreign transactions are charged 3%. In order to use the primor® Secured Visa Gold Card, you will have to deposit anywhere between $200 and $5,000. But because that money is held in a savings account, it will accrue interest at a rate of 0.15% APY.
» Learn more and apply for the primor® Secured Visa Gold Card today!
