Secured credit cards are a good way to begin building credit. This type of card requires you to make a deposit, and then pay at least the minimum monthly payments. The ideal situation would be to pay off the balance in full each month. After you close your account, all deposits are refundable. This means that your card can be used for years before you have the to pay back the balance.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Card Credit Card is a great option to establish credit history, especially if you have struggled with payments in the past. Start with a small deposit of $49 to $99, and even $200. Capital One allows you make monthly payments and will mail your card once you've made the deposit. You can expect a $1,000 credit limit, so it's worth checking out.
Capital One Platinum Secured cards have a $200 credit limit at the beginning. This limit can be increased by adding $800 to your initial deposit. You can apply for a higher credit limit by increasing your initial deposit after six months. After just six months, you could get a credit limit extension of up to $1,000. This is a great opportunity to build your credit and improve your score. Just make sure you make all of your payments on time.
It's Secure!
The Discover it Security credit card is a great option for anyone looking to build positive credit histories. This card has no annual fee or minimum balance and will help you build your credit history while also earning rewards. Students will find it especially helpful as there is no annual charge and you can transfer your balance into an unsecured Discover Card after seven months. Once you have been responsible for your card, you will be able to move up to a secure card without the need for a security deposit.
Discover it Secured credit card also has $0 annual fee, no foreign transaction fee, and no late fees. The card will charge you a late payment fee, but this can be avoided if you make all your payments on time. International purchases are exempt from fees. Balance transfer fees do not exceed three percent of the balance transfer amount for the first six month, and rise to five per cent after that time. These fees are a reasonable option for building credit.
Citi Secured Mastercard
There are many excellent secured credit cards available, but the Citi Secured MasterCard is our top pick. With a low security deposit of $200 to $2,500, this credit card allows you to build your credit history and learn responsible financial practices. In return for a card with no annual fee, you can use it for up to a year and then upgrade to a higher limit if you're ready.
Citi Secured Mastercard also has a zero dollar annual fee. This is unusual among secured credit cards which often have high annual fees but offer few benefits or perks. Unsecured credit building cards can also have eye-popping annual charges and increase in price after the first one year. Although this card has a low annual cost, you will still be charged a significant amount once you start using it.