RANKING & REVIEWS
TOP RANKING BEST SECURED CREDIT CARDS
Introduction: The Best Secured Credit Cards for Poor Credit and How to Apply for a Secured Credit Card
In years past, finding a credit card with bad credit was like trying to find a needle in a haystack. Credit card companies used to be the privilege only of people with good credit. The problem, of course, was that without access to a credit card, it’s not easy to rebuild your credit.
Many people were left for years without an elemental aspect of our money management and financial livelihoods. Secured credit cards with low deposit, however, have arrived to change that dynamic.
Award Emblem: Top 6 Secured Credit Cards
As the credit card industry has grown ever more competitive, more and more secured credit cards are beginning to pop up from banks. Bad credit secured credit cards are available to almost anyone, making it easier to gain access to credit and avoid loan sharks. A secured credit card for bad credit is often considered the best way to rebuild credit quickly.
In this brief article, AdvisoryHQ will begin by answering, “What is a secured credit card?” We will then go on to explore the best secured credit cards for bad credit on the market today.
We’ll also look at the benefits that come with having secured credit cards with low deposit, including finding secured credit card with rewards programs. We’ll end by offering a detailed review of the best secured credit cards for bad credit.
What Is a Secured Credit Card?
Image source: pixabay.com
Banks that offer secured credit cards understand that the millions of people with bad credit or no credit want access to a credit card and that these people represent a huge potential client base. At the same time, these banks with secured credit cards also know that some people with bad credit pose a financial risk for them.
In order to gain more customers while minimizing the financial risk of clients unable to repay their debt, many banks and other financial institutions have begun offering secured credit cards for poor credit.
A secured credit card for bad credit works just like a regular credit card, as you can use it anywhere the major credit card companies (such as Visa or MasterCard) are accepted.
The main difference between secured credit cards for poor credit and regular credit cards is that the credit line on a secured card is determined by a cash deposit that you put on the card. A secured credit card for bad credit, then, allows the consumers to benefit from a plastic payment option while also limiting the risk to the issuing company.
AdvisoryHQ’s List of the Top 6 Best Secured Credit Cards for Bad Credit
List is sorted alphabetically (click any of the credit card names below to go directly to the detailed review section for that credit card):
- BankAmericard® Secured Credit Card
- Citi® Secured MasterCard®
- Commerce Bank Secured Visa Credit Card
- Discover it® Secured MasterCard
- Fifth Third Secured MasterCard
- Capital One® Secured MasterCard®
Top 6 Best Banks with Secured Credit Cards| Brief Comparison & Ranking
Secured Credit Card for Bad Credit Names
APR % for purchases
Late Payment Penalty Fee
|BankAmericard® Secured Credit Card|
|Citi® Secured MasterCard®|
|Commerce Bank Secured Visa Credit Card|
|Discover it® Secured MasterCard|
|Fifth Third Secured MasterCard|
|Capital One® Secured MasterCard®|
Table: Top 6 Bad Credit Secured Credit Cards| Above list is sorted alphabetically
The Benefits of the Best Secured Credit Cards for Bad Credit
When you apply for a secured credit card, you are gaining access to an electronic payment option that is almost a necessity in today’s world. Without a piece of plastic in your back pocket, you will most likely have to endure long lines at the bank on a daily basis or get used to carrying around a wad of cash with you wherever you go. A secured credit card for bad credit allows you the ease of plastic payment which is now accepted almost universally.
Furthermore, secured credit cards for poor credit also help you build your credit score quickly and efficiently. If you’ve defaulted on a personal loan and have seen your credit score dip below that dreaded 600 mark, a secured credit card for bad credit can allow you to start the process of rebuilding your credit history.
Almost all banks that offer secured credit cards report to the major credit bureaus, meaning that these bureaus will see that you are responsibly using a credit card option and thus raise your credit score. If you want a better credit rating in order to apply for a car loan or a mortgage, secured credit cards for poor credit are often the best option.
While some people may scoff at the idea of paying a deposit, there are virtually no secured credit cards for bad credit with no deposits. Furthermore, the deposits on many bad credit secured credit cards is also refundable if you use your card responsibly.
When to Use the Best Secured Credit Card
Secured credit cards with low deposit are usually the best available option for people who want access to an electronic payment option but simply can’t apply for a regular unsecured card because of their low credit score. Furthermore, many foreign nationals who don’t have citizenship can still apply for a secured credit card. Some banks that offer secured credit cards will grant foreign nationals access to electronic payment options through the best secured credit cards for bad credit.
Furthermore, if you and your family have been dreaming of buying your first home but the bank is offering you a high mortgage rate, it might be worth your time to find out what is a secured credit card. By responsibly using secured credit cards for poor credit, you can quickly raise your credit score and may be able to apply for a better mortgage rate.
Lastly, though you may not be able to find any secured credit cards for bad credit with no deposits, a secured credit card with rewards programs may make your initial deposit well worth it. If you can earn cash back on your purchases with a secured credit card for bad credit, you may earn enough money to cancel out your initial cash deposit which gives you your credit line.
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AdvisoryHQ’s Selection Methodology
What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top rated lists?
Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top rated credit cards, financial accounts, firms, products, and services.
Detailed Review – Top Ranking Best Secured Credit Cards for Poor Credit
Below, please find the detailed review of each credit card on our list of banks that offer secured credit cards. We have highlighted some of the factors that allowed these secured credit cards for bad credit with no deposits to score so highly in our selection ranking.
BankAmericard® Secured Credit Card Review
The BankAmerica® Secured Credit Card is one of the best secured credit cards available. For a minimum deposit of $300 dollars you can gain access to a decent credit line. For people wanting a larger credit limit, this secured credit card for poor credit allows you to deposit a credit line up to $4,900 dollars.
Image source: bankofamerica.com
If you use this best secured credit card responsibly, Bank of America will even return your deposit and upgrade your card to an unsecured, regular credit card. The $39 annual fee that comes with this secured credit card for bad credit is a little on the high end, but it is still a small price to pay to quickly build your credit.
Citi® Secured MasterCard® Review
The Citi® Secured MasterCard® is another top secured credit card for bad credit. You can gain access to this secured credit card for bad credit for a deposit as low as $200. Among banks with secured credit cards, the Citibank card is one of the few that comes with no annual fee. That means that you can effectively begin the process of rebuilding your credit for free!
Image source: citi.com
Furthermore, this secured credit with rewards also comes with a number of extra perks. If you use this best secured credit card to rent a car, you may also qualify for free theft or damage insurance. Worldwide travel accident insurance is also yours for any flight or trip you book with this secured credit card for poor credit.
Commerce Bank Secured Visa Credit Card Review
Among banks with secured credit cards, the Commerce Bank Secured Visa Card is a quality option that offers one of the lowest purchase APR rates. At only 18.49%, this secured credit card for poor credit is between 5 and 10 percentage points below most of the other options offered by banks with secured credit cards.
Image Source: commercebank.com
Furthermore, the Commerce Bank Secured Visa Credit Card also allows you to draw interest on your initial deposit. While this secured credit card for bad credit has one of the higher annual fees at $49, it has zero balance transfer or cash advance fees. If you deposit a large amount on this best secured credit card, you may even make enough interest to cover the annual fee charge.
Discover it® Secured MasterCard Review
When it comes to banks with secured credit cards, the Discover it® Secured MasterCard is the best secured credit card with rewards. This best secured credit card has no annual fee and also allows you to earn quality cashback rewards.
For purchases at restaurants and gas stations with this card, you can earn up to 2% cash back, plus 1% cash back for all other purchases. This rewards programs offered by Discover is one of the best among secured credit cards for bad credit and even outcompetes certain unsecured reward credit cards. Furthermore, the 23.24% APR for purchases is better than a number of other competing banks with secured credit cards.
Fifth Third Secured MasterCard Review
The Fifth Third Secured MasterCard is also one of the top secured credit cards for poor credit. If you are looking to build credit quickly, this card promises that all of the important account information related to the best secured credit card will be shared with the three major credit bureaus.
What’s more, this top secured credit card for bad credit also comes with a Cell Phone Protection plan. If you pay your monthly cell phone bill with your Fifth Third Secured MasterCard, you qualify for free damage and theft protection for your phone.
Capital One® Secured MasterCard® Review
The Capital One® Secured MasterCard® also qualifies as one of the top options from banks with secured credit cards. If you are extremely strapped for cash, you can get a card for as little as a $49 deposit. The deposit is 100% refundable as well.
Image Source: capitalone.com
Furthermore, this top secured credit card for poor credit has no annual fee and allows you unlimited access to visit and monitor your credit score. If you need a secured credit card for bad credit that will help you build your credit quickly and efficiently, the Capital One card allows you to gain access to a card for the lowest possible amount as you see how your credit score improve over time.
Conclusion – Top 6 Banks With Secured Credit Cards
There are a number of banks with secured credit cards out there because banks understand that secured credit cards for poor credit are a useful tool for people seeking to rebuild their credit and retake control of their financial livelihoods.
Any of the six secured credit cards for poor credit reviewed above is a great option to get you access to credit as you start to improve your economic situation.
Read More: Top Credit Cards | Ranking & Reviews
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Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.
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