I know that feeling when you think I can get good credit by paying my current bills on time. But the truth is; you will surely need credit to sort out some things or probably an emergency. So you absolutely need a credit card!
Building a credit card for consumers for the first time can be a confusing decision to make especially with the release of systems that use additional information like utility payments or banking information to calculate your credit score.
However, imagine after calculating your credit score as a consumer it is found out that you have a terrible credit score judging directly from your past credit scores either from complaints of poor debts management or failure to pay debts on time.
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This situation reduces your credibility of getting a new credit card because no credit card company would want to run the risk of issuing out a credit card with such terrible credit score history.
Now, you are left with the decision of rebuilding your credit scores which is impossible when you can’t get a credit card to boost up your credit.
With this you are only left with an option to get a secured credit card obviously, you will definitely need a credit card to run your life, especially in a country like the US.
Getting secured credit is a way to rebuild your credit score history which will make you eligible to get access to a new credit using a credit card. If you are having previous issues with your credit score history then, you need to get a secured credits card to rebuild your credit score history.
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A secured credit card is one of the most common ways to rebuild your credit score where you apply for the card, and if you’re approved, you pay a security deposit to open it. Consider the deposit as some sort of collateral.
A secured credit card gives you access to a small line of credit in exchange for a security deposit (normally, it could be the same amount as your credit limit).
Remember that a secured card is an opportunity to show responsible credit habits.
Now the question is; can I rebuild my bad credit scores? Yes, you can!
Here are 10 best-secured credit cards to rebuild credit according to your unique situation:
1. Discover it secured credit card:
Discover It Secured Credit Card offers those with bad credit scores an opportunity to rebuild their credit score. It has no annual fee. You even cash and rebuild your credit with responsible use.
It helps you rebuild your credit history with the three major credit bureaus, which prepaid and debits card can’t do. You will have to create your credit line with your fixed return by providing a refundable security deposit of at least $200.
You earn 2% cashback at Gas stations and restaurants on up to $1,000 in combined purchases each quarter. It also offers a new cardholder bonus offer.
However, it requires a minimum deposit and a high APR. Fun fact, it tells you when to graduate to a regular card and get your deposit back at 7months. It starts a review to see if you are qualified for an upgrade.
2. Bank of America Customized Cash:
Bank of America Customized Cash helps you to rebuild your credit while you also earn 3% cashback on any category of your choices such as gas, online shopping, dining, travel, drugstores, home improvement, and other cashback in other categories as well.
A minimum security deposit of $300 is required to open the account. Your Maximum credit limit will be determined by the amount of the security deposit you provide, your income, and your ability to pay the credit line is established.
Once your account is reviewed, you may be qualified to have your security deposit returned to you.
3. U.S Bank Cash + Visa Secured Card:
This doesn’t need your credit history or scores because it is a secured card aimed at people who want to establish or rebuild their credit. You can get zero approval or Zero credit history.
However, a minimum deposit of $300 is needed to activate the account. And a maximum credit line of $5,000 for a secured credit card.
The security deposits for the U.S Bank secured Visa is deposited in an interest-bearing account at U.S Bank and as long as your credit card is open, you can receive yield. Which is kept as a security deposit and not used for payment.
You get it back once you close your account if there ain’t any unresolved charges. However, there are no rewards for this, your credit line is tied directly to the security deposit, these make up its cons.
4. Capital One Quicksilver Secured Cash Rewards Credits Card:
This card allows consumers to earn cashback as they rebuild their credit, but the variable APR of 26. 99% means you should avoid carrying a balance. This card can help you boast a credit profile with responsible use.
The card has no annual fee. It has a minimum deposit of $200. It also has a free tool to keep a check on your credit score and $0 fraud liability which means, you won’t be responsible for unauthorized charges.
However, you have to avoid carrying a balance because this card charges a variable APR of 26. 99%. Of course, you should expect a security deposit.
5. First Progress Platinum Select Master Card Secured Credit Card:
Trust me, if you are looking forward to rebuilding your credit score history with a no minimum credit requirement, then this card should be an option for you. It offers you a considerable interest rate for a secured card.
However, there is an annual fee of a $200 minimum deposit and few cardholder benefits. For instance, there are no rewards programs or purchase protections. It is actually a good option since it doesn’t consider a credit check.
However, consider the lower-fee option from this card, if you can avoid carrying a balance, and look into secured cards without an annual fee from other companies.
6. Kohl’s Card:
This option is suitable if you shop at Kohl’s department stores and you want the chance to rebuild credit with a store card first.
It has zero rewards and also a zero annual fee. But it can qualify you for a special discount of up to 30% off your purchase throughout the year. You can also secure 35% off your first purchase when you apply for the card.
Also, if you spend at least $600 per year on your Kohl’s credit card, you can be eligible as Kohl’s most valued customer. This level comes with a free shipping event.
7. Petal 2 “Cash Back, No Fees” Visa Credit Card:
Petal 2 does not rely on credit scores only to determine if a consumer is qualified and it does not require any fee. You will even get rewards.
The card runs on the visa network is one of the best of the bunch when it comes to cards aimed at those with less-than-stellar credit.
With the Petal 2 card, you won’t be required to pay an annual fee or put down a security deposit and eligible purchases will earn 1% cash back rewards. With a consistent early payment attitude, that number will boast into a healthy 1.5% cashback.
8. Opensky Secured Visa Credit Card:
By applying for this card, you don’t have to go through the process of a credit check and you certainly don’t need a bank account to be qualified, making it obtainable for people with bad credit score history.
A deposit of $200 minimum and $3,000 maximum is required. Some of the features that makes it different from a traditional bank account is when a consumer can pay bills wire transfer checks or money orders with a debit card.
Opensky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5years. You can get considered for a credit line increase after 6months and also report to all 3 major credit bureaus monthly.
Your refundable deposit of $200 becomes your Opensky Visa Credit limit. However, there is an annual fee of $35.
9. Chime Credit Builder Visa Credit Card:
Interestingly, this card has no minimum deposit requirement charges nor does it have an annual fee or interest. It doesn’t require a credit check too. You are never late to automate your payment.
However, you can only get it if you are banking with Chime as their customer. Chime is considered a financial technology company and not a bank.
You can use your secured credit builder card everywhere Visa is accepted excluding everyday purchases like gas and groceries. It helps you rebuild your credit history with your money.
It increases your credit score by an average of 30 points with a regular one-time payment.
10. Capital One Platinum Secured Credit Card:
This is extremely good for rebuilding a credit score. It doesn’t charge annual or monthly fees. And it reports account information to all three major credit bureaus on a monthly basis.
With responsible use, you can rebuild your credit score and get upgraded to an unsecured credit card. Can I get qualified even with a bad credit score?
Surprisingly, yes! However, it comes with no rewards and also requires a deposit of $200 which is refundable. It does not charge any foreign transaction fee.
Florence is a personal finance writer, who is passionate about helping others attain financial freedom. She covers topics from side hustles and debt payoff to investment and retirement.