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The Best Secured Cards of 2017 For Credit Repair And Credit Building

The Best Secured Cards of 2017 For Credit Repair And Credit Building

If you’re having trouble getting a credit card due to bad history or no history, getting a secured card may be the solution for you. The “secure” in a secured card means that you have to put down a deposit which the bank will use as security just in case you can’t make the payments. But alas, not all cards the same. Here are some of the best secured cards for getting started building credit or for credit repair.

1. Capital One® Secured MasterCard®

cap1card

Pros

  • No annual fee
  • No foreign transaction fee
  • Reports to the three major credit bureaus
  • Get a $200 limit that’s higher than your deposit of $49, $99, $200 depending on your credit
  • 80 days to make partial payments to your deposit. Your account, however, will not be activated until the deposit is fully paid
  • Get access to a higher credit line without an additional deposit after you make your first 5 monthly payments
  • Manage your account 24/7 by phone, online access or through their app

Cons

  • High 24.99% Variable APR
  • You need a checking or savings account
  • You cannot have a discharged bankruptcy and your rent cannot be almost high as your income (this is generally the case with all credit cards)
  • No rewards

Verdict

This is definitely a great card if you don’t want to spend a lot of money upfront on your deposit.

Online Customer Reviews

The card seems to really work for first-time credit builders and those who are trying to fix their credit. Many customers praise the Capital One® Secured MasterCard® for giving you the ability to easily check your balance. There’s also a credit tracker option which helps you easily monitor and improve your credit score. Most people use it for emergencies and very low purchases. People do complain about the high APR. Vigilance and steadfastness is required in paying on time. Great card to get for those who have been rejected by other companies.

2. OpenSky® Secured Visa® Credit Card

open-sky

Pros

  • Qualify with bad or no credit
  • Qualify within minutes
  • No checking account or credit check required
  • The card reports to the three major credit bureaus

Cons

  • Has an annual fee of $35
  • No rewards
  • You generally can’t upgrade to a unsecured card

Verdict

This is the best secured card for someone who has bad credit or no checking account.

Online Customer Reviews

Many customers complain that they can’t upgrade to an unsecured card. As a result, they use it mainly to build credit and then end up getting an unsecured card with a different card company. Customer service also seems to be a problem. Customers complain that payments take a while to post, so they need to pay well in advance of the due date. Overall, it’s still a great option for people who have been rejected by other card companies. It’s still one of the best secured cards because even for customers who have complaints, they were able to actually fix their credit score or start building credit.

3. Discover it® Secured Card

discover-it

Pros

  • No annual fees
  • Cash back on every purchase. Rewards never expire. Earn 2% on all gas and restaurant purchases up to $1,000 per quarter. Earn 1% cash back on all other purchases.
  • Get your FICO score for free with your monthly statements and online
  • Qualify even if you’ve filed for Chapter 7 bankruptcy
  • After 7 months, Discover will do reviews of your account, and you have the chance to upgrade to an unsecured, standard credit card. You can have your deposit refunded and even get a higher credit limit
  • No penalty APR for paying late, and no late fee for missing for your first due date

Cons

  • 23.49% variable APR
  • Deposit equal to the credit limit. A security deposit of $200 or more is required

Verdict

It has great rewards for an unsecured card. Just make sure to pay off your bills in full to avoid the steep APR interest.

Online Customer Reviews

Many customers actually get upgraded to an unsecured card in addition to getting their deposit back. And many seem to do so quicker than they expected. Just make sure to never make a late payment. Users like the ability to quickly increase their credit scores. It takes about two weeks to receive your card. You can also get a Discover iPhone App for easy access.

A Comparison of Benefits

Which of the best secured cards is best for me?

Which one is the easiest to apply to?

The OpenSky® Secured Visa® does not apply a hard credit check, so you won’t lost points on your record. On top of that, you’re able to qualify in a manner of minutes. 

Which one has the cheapest deposit?

This may be a stickler for many people because chances are if you’re struggling with building or fixing your credit, you may be low on cash. On secure credit cards, many have a deposit requirement of $200 which may be too much for some people. So, if you’re looking for a low deposit, Capital One® Secured MasterCard® may be a good choice for you.

Which card offers a rewards program?

Because most secured cards focus on getting customers to build up their credit, rewards usually aren’t offered. This is what makes the Discover it® Secured Card one of the best secured cards. Its ability to earn you 2% cash back on all gas and restaurant purchases and 1% cash back on all other purchases may very well make it one of a kind.

Which card allows you to upgrade to an unsecured card?

Due to the no-frills, low credit limit nature of secured cards, many users eventually wander to other cards which offer better options. However, instead of applying for another card with a different company, the Discover it® Secured Card allows you to upgrade to a unsecured card with a returned deposit and a higher credit limit.

Which card allows you to not have a checking account?

Having a checking account may not be an option for some people. For this reason, the OpenSky® Secured Visa® Credit Card may work well for you. Although you may not need a checking account for opening an account, you probably need one to make payments.

Which card has the lowest annual fees?

Many users don’t like the annual fee because if you add up the interest rate and paying down the balance, the money really adds up. Plus, if you’re not really using your card, you may forget that you even have one. Both the Discover it® Secured Card and Capital One® Secured MasterCard® have no annual fees.

Which card has the lowest interest rates?

Among the three secured credit cards, the OpenSky® Secured Visa® has the lowest purchase APR of 17.64% Variable. However, they do have a penalty APR of up to 21.75% variable and a cash advance of 17.64% APR variable.