The Best Secured Credit Cards for Rebuilding Credit
Although credit cards sometimes cause more problems than they solve, when it comes to rebuilding your credit, they can be helpful. Depending on your credit, you may not be able to get an unsecured credit card. In that situation, you should consider a secured credit card. The benefit of these cards is that your credit limit is based on the deposit you make. So, for most of them, if you deposit $300, then your credit limit is $300. This makes it easy to watch your spending, but still rebuild your credit. Here are some of the best secured credit cards to help you rebuild your credit.
Digital Federal Credit Union
There are several advantages to this card, which is why it’s a good choice for those looking to rebuild their credit. First, the 11.5% APR is one of the lowest APR’s for secured credit cards. Another benefit of this card is that it reports to all three major credit bureaus. Finally, it doesn’t have an annual fee, which comes part and parcel for almost all secured credit cards. It does have a $500 deposit, so plan ahead if you’re interested in this card.
US Bank Secured Card
The US Bank Secured Card has a $29 annual fee, but the deposit is more flexible than many other secured cards, ranging from $300 to $5,000. The upside to the deposit is that it’s kept in an interest-bearing savings account, which means you’ll be making a little money while it sits there. US Bank reports to all three credit bureaus, and it doesn’t charge a penalty APR if you’re late. One of the best features is that this card offers an upgrade option after 12 months, assuming you’ve paid on-time every month. Just be aware that the qualifications for this card are rather strict given the benefits.
Capital One Secured MasterCard
With this card, you can choose your deposit of $49, $99, or $200 and you’ll get approved for a limit of $200 with no annual fee. You can also make partial payments on your deposit, provided it’s paid in full 80 days from the date you are approved, and you still get access to the full credit line for which you were approved. It also reports to all three major credit bureaus, but one of the best features of this card is that you can track your credit-building with Capital One’s Credit Tracker tool. It shows you how your credit improves the more you use your card and pay it off each month.
Credit cards can be both a blessing and a curse for some people, but when it comes to rebuilding your credit, they are the best way to improve your overall credit standing. There are several types of credit cards on the market, but secured cards are generally the easiest to get when your credit is less than perfect. Using secured credit cards responsibly can help you build a strong credit standing to the point that you may eventually qualify for unsecured cards, mortgages, and low APR car loans.