Legal. Fast. Easy, Joe Sainz Credit Repair Expert
Credit Cards For Bad Credit
Having bad credit or a very limited credit history makes getting a credit card tough. But secured credit cards are generally easier to get, and in some cases, they can help you improve your FICO score enough to qualify for an unsecured card. With a secured card, you make a cash deposit, which the issuer holds as collateral in case you don’t pay your bill. The deposit reduces the issuer’s risk, which is why secured cards can be an option for those with bad credit.
Types of Secured Cards are:
1.Capital One® Secured MasterCard®
Benefits of the Capital One® Secured MasterCard®:
1.You don’t have to make your collateral deposit all at once. You can pay in installments, as long as the deposit requirement is met within 80 days of account opening.
2. You may be able to get a credit line of $200 with a deposit of only $49 or $99, depending on your credit. Most secured cards set your credit line equal to your deposit.
3. Over time, you may qualify for a higher credit line without putting down an additional deposit, a rare opportunity among secured cards.
4. The card’s $0 annual fee is low compared with other secured cards.
Drawbacks of the Capital One® Secured MasterCard®:
1.This card has a high interest rate: The ongoing APR is 24.99% (Variable).
2.The Capital One® Secured MasterCard® card doesn’t offer a rewards program. This is common for secured cards, but it’s possible to find those perks elsewhere.
The bottom line
The Capital One® Secured MasterCard® is an excellent choice for people who are short on cash but want to work on building or rebuilding their credit. It offers flexibility when it comes to making a collateral deposit, and responsible use of the card could score you a higher credit limit without having to cough up additional funds. Also, because the card is issued by a major bank, it may be easier to upgrade to one of the bank’s unsecured cards later.
2. Navy Federal nRewards Secured:
Benefits of the Navy Federal nRewards Secured:
1.The Navy Federal nRewards Secured earns rewards, which is very rare among secured credit cards.
2. The card’s annual fee is $0 — another unusual benefit for a secured credit card.
3.This card charges a comparatively low interest rate. 2.99% for 12 months on balance transfers, and then the ongoing APR of 9.24% – 18% Variable
Drawbacks of the Discover it® Secured Credit Card – No Annual Fee*:
1.Only members of Navy Federal Credit Union can get the Navy Federal nRewards Secured. You must be a Department of Defense employee (including military members) or the family member of a Department of Defense employee to join.
2. The card’s minimum deposit is $500, which is high compared with other cards.
The bottom line
The Navy Federal nRewards Secured is undoubtedly the Nerds’ secured credit card of choice — if you meet the eligibility criteria for Navy Federal Credit Union membership. It has a low cost, offers rewards, and reports activity to the major credit bureaus. This is a rare trifecta of benefits.
3. US Bank Secured Card:
Benefits of the US Bank Secured Card:
1. The US Bank Secured Card allows a credit limit of up to $5,000, if you’re able to provide that amount for a deposit.
2.U.S. Bank will evaluate your account after 12 months. If you’ve been responsible with your card, you may be eligible to upgrade to an unsecured card. This is a faster opportunity to transition to unsecured credit than many other cards provide.
3.The card’s annual fee is $29, which is low compared with many secured credit cards.
Drawbacks of the OpenSky® Secured Visa® Credit Card:
1. As of December 2015, U.S. Bank doesn’t offer free FICO score access to secured credit card holders. This could make it hard to track your credit progress over time. (The bank does offer lesser-used TransUnion scores for free.)
2. The ongoing APR is 19.24% — a pretty steep interest rate compared with some other options.
The bottom line
This card is a first-rate choice if your main goal is to switch from a secured card to an unsecured card as quickly as possible. Since many secured cards force you to wait 18 months or more to transition, the US Bank Secured Card’s evaluation at 12 months could be a great opportunity for responsible cardholders.
4.Digital Federal Credit Union Visa Platinum Secured Credit Card:
