There are many types of secured credit cards available on the market today. Most major banks offer some type of secured credit card as well as credit card providers like Capital One. These credit cards are a great way for someone to establish or repair their credit history.
The free online credit card chaser tool can help you find the perfect secured credit card today!
After being approved for a card you can then learn more about the best ways to use it from sites like SmartMoney and MyMoney. Read on for an explanation of secured credit cards, and specific examples of the ones that are available.
What is a secured credit card?
A secured credit card is a special type of card the is designed for someone that either has no credit history at all or has made mistakes with credit cards in the past. This card requires a down payment to act as a form of security deposit.
Most providers require a minimum deposit of at least $200. If you have a tight budget this might be a lot of money to pay all at once. Luckily, many secured credit card providers will let you make installment payments. Once the minimum deposit amount is reached, the provider will send you the credit card. This deposit is refundable so if you cancel the card you get your money back.
To start, the credit limit for this card will be the same amount as the security deposit. If you want a higher credit limit, all you have to do is add more money to the deposit. This deposit protects the card provider if you stop making payments. If you make all of your payments on time and show that you can handle the responsibility of a credit card well, the provider will start raising your credit limit with no additional deposit.
These credit cards help you build or rebuild you credit score because they report directly to the three credit bureaus. The three credit bureaus are Experian, Equifax, and Trans Union.
What are the details for the Capital One Secured credit card?
The Capital One Secured Master Card requires a security deposit of $49, $99, or $200. The initial deposit amount is determined by your personal credit score. The credit line for this card can range from $200 to $3,000. You can make a larger deposit to instantly increase your credit line, but if you make payments on time, eventually Capital One will raise your credit line with no additional deposit.
The annual fee for this credit card is $29. The annual percentage rate is a variable 22.9%. A variable annual percentage rate changes with the prime rate of the credit card market. The annual percentage rate for balance transfers is also 22.9%, but the rate for cash advances is a bit higher at 24.9%.
Credit card interest can quickly cause debt to get out of control. To avoid interest payments all together, try to pay off your balance in full each month. There is no transfer transaction fee for this card. There is a cash advance fee of 3% with a fee minimum of $10. There is a late payment fee of $19 and a fee of $35 for a returned payment.
What are the details for the BankAmericard Fully Secured Visa credit card?
This secured credit card is offered through Bank of America. This card offers a credit line of $300 to $4,900, which is based off your annual income and security deposit payment. This card also comes with a credit education program to help you build a strong financial foundation.
Bank of America will review your account after one year and if you are eligible, they will upgrade you to an unsecured credit card. This card has a lower annual percentage rate than the Capital One card at 20.24%. This low annual percentage rate is not set in stone, if you make a late payment with this card your annual percentage rate will jump to 29.99%.
The annual fee is $39 and the balance transfer fee is 4% with a minimum of $10. This same fee amount applies to cash advances. The foreign transaction fee is 3%. The penalty for a late payment is $35 and the fee for a returned payment is $25.
No matter which secured credit card you choose, always remember to read the fine print to avoid any unnecessary fees.
Use the credit card chaser to compare credit cards today!
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