The Best Secured Credit Cards of 2017
Secured credit cards offer those with limited, poor, or no credit a chance to get a credit card. The best secured credit cards offer low fees and a chance to build credit. The help consumers build credit by reporting the monthly credit card payments to the credit bureaus.
A secured credit card is different than an unsecured credit card because your approved credit limit depends on the amount of your initial deposit. Unsecured credit cards provide cardholders credit without having to put anything up for collateral. A secured credit card, on the other hand, works only when the cardholders deposits an initial amount of money to the card issuer.
That amount is the amount of credit the cardholder will receive. If the cardholder defaults, the issuer can simply draw from the deposited funds to cover the default. Secured cards generally come with unfavorable terms and high fees but we’ve compiled a list of our favorite secured cards that offer good terms with very low fees.
One important benefit of a secured credit card is the ability to build credit. Secured cards report your payments to the credit bureaus, enabling you to build credit. It’s critical to make your monthly payment on time.
- No annual fee. No late fee on your first late payment.
- No increase to your APR for paying late.*
- Earn 2% cash back at restaurants & gas stations on up to $1,000 in combined purchases each quarter. Earn 1% cash back on all other purchases.
- Discover doubles all the cash back you've earned at the end of your first year. New cardmembers only.*
- Your credit line will equal your security deposit amount of $200 or more.*
- Monthly reviews start at 12 months to see if you qualify to get your security deposit back while you continue to enjoy your card benefits.*
- Reports to 3 major credit bureaus so you can build or rebuild credit with responsible use.*
- See your FICO® Credit Score for free on monthly statements & online.*
- Build Your Credit fast with our monthly reporting to all 3 major credit bureaus.
- Choose your credit line as low as $200 up to $3000, secured by a fully-refundable* security deposit.
- Security deposit needs to be submitted before the credit card can be issued.
- No credit check necessary and no checking account required; apply in less than 5 minutes.
- Extra credit when you need it, increase your credit line up to $5000.
- Access to online financial education.
- *View our Cardholder Agreement located at the bottom of the application page for details of the card.
Topics: Credit Cards