When you apply for a loan or a new credit card, your credit history is reviewed thoroughly. With poor payment records, you will be considered a risky borrower, which gives little assurance to insurers. In this case, consider opting for a secured credit card. Depositing a fixed sum of money as a collateral lends reliability to the cardholder and helps build the credit score. Let’s look at the best secured credit cards for bad credit.
Discover it® Secured Credit Card
This credit card has benefits like zero annual fee and rewards. You get 2% cash back after spending upto $1000 per calendar quarter at gas and food outlets. The cash back you earn, right from the day of account approval, will be matched at the end of the year. If you manage payments well, Discover it® may upgrade you to an unsecured card. With no penalty APR and free foreign transactions, Discover it® is a great credit card option for people with bad credit.
DCU Visa® Platinum Secured Credit Card
If you’re looking for a credit card with low interest rates, DCU Visa® fits the bill. It has an ongoing yearly interest rate of 11.50%. With no fee on foreign transactions, balance transfers, or cash advances, you save up on a lot of expenses. It is, however, necessary to either be a member of the Digital Federal Credit Union, or a participating organization. You also have to deposit $500 to get your DCU Visa® Platinum credit card.
Bank of America Cash Back Secured Credit Card
When a large part of your expenses covers household items, it is better to opt for a credit card with good returns on this category. The Bank of America Cash Back Secured card offers 2% cash back at grocery chains and 3% on home improvements, dining, or online shopping. You can opt for the best from a variety of categories every month for the cash back as per your expenses and save up accordingly.
OpenSky® Secured Visa® Credit Card
Passing the credit review is often a prerequisite to get approved for a credit card. Also, many companies make it mandatory to own a traditional bank account. With OpenSky®, none of these requirements hold you back from getting a credit card. If you have a bad credit history, you have more chances of getting your account approved by OpenSky® than elsewhere. Pay a yearly fee of $35, and rebuild your credit easily.
Navy FCU nRewards® Secured Credit Card
With free balance transfer and no annual fees, this secured credit card is good if you are a member of the Navy Federal Credit Union. For each dollar you spend, you are given a point. Also, there are no limits on the rewards earned and points can be traded for gift cards, cash, or merchandise. It is a great deal for those who spend regularly.
