Maintaining a good rewards credit card requires a lot of discipline. If you have a habit of missing payments, you will not only be burdened with high interests, your credit score will be affected as well. In the long run, this will affect your chances of getting qualified for credit cards. If you’re already having this issue, secured credit cards are your only way out. With these 9 best-secured credit cards, you can rebuild your credit score as most of them report to credit bureaus.
Also, the 9 best secured credit cards are not only for those with poor credit, you can also opt for them if you’re new to credit. It’s easy to qualify for secured cards since you need to make a security deposit to “secure” the credit limit. As long as you’re on time with payments. Your security deposit will be refunded to you when you close your account. Considering important factors such as rewards, credit limit, and pricing, here are the 9 best-secured credit cards of 2019;
01 Best Rewards: Discover it Secured | 9 Best Secured Credit Cards
First, the Discover it Secured Credit Card is a unique secured credit card that pays rewards. You’ll earn two percent cash back at restaurants or gas stations on up to $1,000 in combined purchases each quarter. On top of that, you’ll earn one percent cash back on all your other purchases. As a bonus, Discover will automatically match all the cash back you earn in your first year.
You can make a minimum $200 security deposit to open your credit card. (The maximum security deposit is $2,500). Then, starting at eight months, Discover will review your account history to determine whether you can receive a refund of your security deposit and keep your credit limit.
With the Discover it Secured Credit card you’ll have free access to your FICO score on your monthly billing statements. Discover also offers free Social Security number alerts. Notifying you if your Social Security number is found on risky websites across the internet.
Important Pricing: The APR is 24.99 percent, and there is no annual fee.
02 Lowest Security Deposit: Capital One Secured MasterCard | 9 Best Secured Credit Cards
Secondly, the Capital One Secured MasterCard, you may be able to pay a security deposit of $49, $99 or $200 for a refundable $200 security deposit. Your exact security deposit is based on your credit standing. After you’re approved. You’ll have the option of making an additional security deposit for a higher credit limit if you’d like.
Your on-time payments matter. After making your first five monthly payments on time, Capital One will automatically consider you for a credit limit increase. Without requiring you to make an additional security deposit.
With the Capital One Secured MasterCard, you’ll also have access to additional MasterCard benefits such as an extended warranty on eligible items, auto rental collision damage waiver. Travel accident insurance, and 24-hour roadside assistance.
Important Pricing: The APR is 26.99 percent, and there’s no annual fee.
03 Best No Credit Check: Open Sky Secured Credit Card | 9 Best Secured Credit Cards
The Open Sky Secured Credit card doesn’t require a credit check making it one of the easiest cards to get approved for. This is ideal if you have recent delinquencies or bankruptcy that would make it hard to get approved for other secured credit cards.
You can make a security deposit of from $200 to $3,000 for a credit limit of the same amount. Open Sky offers a variety of options for making your security deposit, even if you don’t have a checking account. You can make the deposit via debit card, wire transfer to Capital Bank, Western Union, or by mailing a check or money order.
Unfortunately, Open Sky doesn’t offer the ability to convert your card to an unsecured credit card. It does report your credit history to the three major credit bureaus. After you manage your account well for several months, you may qualify for an unsecured credit card with another credit card issuer.
Important Pricing: The APR is 19.64 percent, and the annual fee is $35.
04 Best for High Credit Limit: Wells Fargo Secured Credit Card
Fourthly, if you’re interested in a secured credit card with the opportunity for a high credit limit, the Wells Fargo Secured Credit Card is your pick. You can deposit up to $10,000 for a $10,000 credit limit. The minimum security deposit is $300.
Over time, you can become eligible to upgrade to an unsecured credit card if you manage your account well. At a minimum, that means making all your monthly payments on time on all your credit accounts, not just your Wells Fargo Secured Credit Card. Wells Fargo doesn’t specify how long it takes to upgrade your credit card account.
The Wells Fargo Secured Credit Card gives you access to other Visa benefits such as auto rental collision damage waiver, travel and emergency assistance services, and cell phone protection.
Important Pricing: The APR is 20.99 percent on purchases and balance transfers. And the annual fee is $25.
05 Best for Military: Navy Federal nRewards Secured Visa | 9 Best Secured Credit Cards
The Navy Federal nRewards Secured Visa is another unique secured credit card that pays rewards – one point for every dollar you spend to be exact. You can redeem your points for gift cards, merchandise, statement credit or cashback.
Rewards expire four years from the month you earn them. There’s no limit on the number of rewards you can earn, and you can redeem once you earn 1,000 points (that’s $1,000 in spending).
If you’re a member or veteran of the Armed Forced, a DoD civilian, or a family member of one of these. You may be able to join Navy Federal Credit Union and apply for the Navy Federal nRewards Secured Visa. You must make a deposit of at least $200 into a qualifying Navy Federal account to apply for the nRewards Secured Visa.
Important Pricing: The APR is 10.99 to 18 percent depending on your credit rating and there’s no annual fee, balance transfer fee, or foreign transaction fee.
06 Best for Upgrading: First National Bank Secured Visa Card
With the First National Bank Secured Visa Card, good credit habit pays off. You’ll qualify for a credit increase in as little as seven months if you make all your monthly payments on time. Then, you may qualify to receive your security deposit back in as little as 11 months. Again, you’ll have to maintain a good credit history to upgrade your account to an unsecured credit card. You can open your account with a security deposit between $300 and $5,000.
As a First National Bank cardholder, you’ll receive a free FICO score each month with your monthly billing statement. Your FICO gives you an indication of your creditworthiness and shows you how your credit score changes over time.
Important Pricing: The APR is 11.99 to 19.99 percent on purchases and balance transfers. And there’s no annual fee.
07 Best for Earning Interest: USAA Secured American Express
When you apply for the USAA Secured American Express, you’ll also open a two-year certificate of deposit (CD) which holds your security deposit and pays a variable interest rate on your deposit. You can deposit from $250 up to $5,000 to secure your credit limit. The more you’re able to deposit, the more interest you can earn. USAA will report your credit card history to the three major credit bureaus, which will help your credit score as long as you’re on time with your payments.
You must be a member of USAA to apply for the USAA Secured American Express. Membership is open to military members and their families.
Important Pricing: The APR is 8.90 to 27.90 percent, there is no penalty APR, and the annual fee is $35.
08 Best for Small Businesses: Wells Fargo Business Secured
Next, Wells Fargo Business Secured is ideal for small businesses with employees who have little to no business credit history. New cardholders can earn unlimited 1.5-percent cash back on credit card purchases with no fee. Rewards are paid automatically at the end of each quarter to a Wells Fargo Business Credit Card or to a linked checking or savings account.
Furthermore, your business can obtain a credit limit between $500 to $25,000 depending on your security deposit. The larger the security deposit your business makes, the greater your purchasing power. Plus, you can add up to 10 employee cards to your account — each with an annual fee of just $25 per card.
Wells Fargo will review your account periodically to determine whether to upgrade you to an unsecured credit card.
Important Pricing: The regular APR for purchases is the Prime Rate + 11.90 percent.
09 Best Interest Rate: State Department Federal Credit Union Savings Secured Visa
Lastly, State Department Federal Credit Union Savings Secured Visa Platinum offers one of the best interest rates. To apply, you’ll first have to become a member and deposit at least $250 into a savings account. Then, once you’re approved, your credit limit will be based on the amount in your savings account. You’re automatically enrolled in the Flexpoints rewards program which allows you to earn 1 point for every dollar you spend on your credit card.
Also, redeem your rewards for travel, merchandise, gift cards, event tickets, or donate to charity. You’ll get a 25-day grace period on purchases which gives you a few extra days to pay your balance in full and avoid paying interest.
Next, there’s no income verification and only new members are subject to a credit check. There are a number of options for joining the State Department Federal Credit Union. You can join if you’re an employee of the U.S. Department of State, an affiliate of an eligible organization, or have an immediate family member who is a member. You can become a member by joining the American Credit Union for $8.00.
Important Pricing: The regular APR is 8.99 to 16.99 percent. There’s no annual fee, balance transfer fee, or foreign transaction fee.