Millions of Americans conflict the problem of lousy credit. This issue generally comes from lack of knowledge of credit when the person is quite young and just starting out after high school. Improper use of credit cards, like overspending beyond one’s means, not paying invoices or paying invoices late are a few of the most usual matters that can cause an individual’s credit taking a downward spiral. Nevertheless, all hope isn’t lost as there are bonded cards which can help someone with poor credit to enhance their credit score and standing.
Secured Credit Card
Secured credit cards are an excellent means to rebuild your credit and may be used to pay for goods and services. The required savings deposit for a secured card may range between a couple hundred to several thousand dollars. Generally, a bank will pay interest on the security deposit they hold. Moreover, you also might need to pay application and processing fees that can occasionally total hundreds of dollars. Before you apply, make sure you ask what the total fees are and whether the upfront fees will be refunded if you are denied a card. Generally, a secured card requires a yearly fee and has a higher rate of interest than an unsecured card. Making your payments on time monthly will raise your credit rating.
If you’re contemplating a secured card as a means to construct or reestablish a credit record, ensure that the issuer reports to a credit bureau. Your credit history is kept by companies called credit bureaus; they gather information reported to them by banks, mortgage companies, department stores, and other lenders. If your card issuer does not report to a bureau, the card will not help you construct a credit history.
Before applying for a secured card, please take a moment to view are editor reviewed list of second chance unsecured credit cards for bad credit.
Below are a list of secured credit cards accessible to people who have poor credit:
The Capital One Secured MasterCard is among the top rated secured credit cards for people with poor or even no credit. There’s a $29 yearly fee, and use is generally reported monthly to the three leading credit reporting bureaus. It’s an excellent card to use for building or enhancing credit, and it has a potential to create a line of credit of up to $3,000.
The Applied Bank Secured Visa Gold credit card is a fantastic alternative for people with poor credit or no credit history. It carries an APR of 9.99% and a $50 yearly fee. There’s no fee for balance transfers. The user can begin with a minimal down payment of $200 but can raise the person’s line to a maximum of $5,000.
The First Progress Platinum Prestige MasterCard is simple and quick to get approved for, and no credit history or even a minimal credit score is needed. The yearly fee connected with the card ranges together with APR on purchases, determined by the kind of card applying for.
The Secured Visa from Merrick Bank is an excellent secured credit card which allows the consumer to construct or repair their credit. Use is reported to the three leading credit reporting bureaus. Over time, the person can raise their credit line to up to $3,000. There’s a zero APR and no fee on balance transfers initially, with the number rising to 17.45 percent later on. The card carries a $36 yearly fee.
The BankAmericard Secured Credit Card has no application or required activation fees but it has a $39 yearly fee. Credit lines from $300-$4,900. Has a $0 Obligation Guarantee, which protects you from fraudulent card transactions.
The Open Sky Secured Visa Credit Card has a yearly fee of $50. Security deposit between $200-$3000 at time of application which is going to be equal to your credit line. The down payment is completely refunded after all obligations are filled. No credit check is needed for acceptance comes with great advantages including automatic auto rental insurance, travel and crisis aid, and emergency card replacement. $0 Fraud Liability and FREE 24/7 On-Line Account Access.
The U.S. Bank Secured Visa Card requires a security deposit that ranges from $300 to $5,000 which is going to be equivalent to your credit line. When you’ve managed all of your credit obligations responsibly consistently for 12 months they might have the ability to transfer you to an unsecured credit card merchandise.
Wells Fargo Bonded Card is a secured card that functions like any other credit card, and can be used wherever Visa credit cards are taken, but demands a down payment to open your “Security Account”. You deposit $300-$10,000 into a “Security Account.” Your credit line will directly represent the sum of your down payment. There’s a yearly fee of $25. Comes with auto rental advantages and travel services.