Secured credit cards need a cash deposit in order to be activated. Secured credit cards require a cash deposit to activate. Once the cash deposit is received, the card will function as an unsecured credit card. You can purchase and pay for goods. However, if you are late in making payments, interest will apply and issuers may pull the deposit from your account. Paying late on your payments will negatively impact your credit score. You need to be aware of the minimum monthly payment.
Capital One Platinum Secured credit card
Secure credit cards such as the Capital One Platinum Secured Credit Card are available. This type of card doesn't require you to deposit collateral with the company. This is an advantage because it maintains your credit history while helping you to repair your credit. You can also make your payments on time, and avoid maxing out the card's balance. You should notice positive changes in credit reports within three months. You can combine the card with another secured card like the Discover It Secured Card.
The Capital One Platinum Secured Credit Card offers you a credit limit of up to $1,000. It also offers a credit line of up to $5,000. Credit score is affected by your credit limit. Therefore, you need to carefully assess your credit utilization ratio. It should be lower than 30%. Once you have established a good credit history, you can move on to unsecured credit cards with better perks. This card should only be used to establish good credit and help you qualify for better perks.
Discover it Secured Credit Card
For those who wish to rebuild credit without paying high fees, the Discover it Secured Credit card is the best option. There are no annual fees and no restrictions on what you can spend. This card allows you to earn rewards and builds your credit history. Discover it Secured Credit Card gives you the best both of them with a low interest. You can use this card for all your monthly expenses. Additionally, you earn rewards for every purchase.
The Discover it Secured Credit Card offers a surprisingly generous welcome bonus and a good cash back program. This card is great for students and those with limited credit histories. It will help you build a strong credit record without the need to submit a credit report. Discover will automatically review your account within seven months and return any deposit that you have not paid on time. You will also receive many perks and rewards for paying your bills promptly and exercising financial responsibility.
nRewards Secured credit card
For people with poor credit, the nRewards secured credit card is a great choice. Individuals can get this card with money to act as collateral against the card's credit limit. People with bad credit or no credit can use this card to build their credit, as it reports credit payment behavior to the major credit bureaus. It has very low interest rates and can be an excellent option for those who want to build credit.
Although there are many other secure credit card options, the nRewards Secured Credit Card offers a unique combination of a low annual fee as well as a security deposit. It's a great option for those who have a restricted budget or are building their credit history. It is a good option for those with poor credit scores, as it has no annual fee and a $200 security deposit. This card is also comparable to other secured credit cards with a $200 security fee.