Secured credit cards are perfect for rebuilding credit card history. The credit cards need a deposit and periodically report credit account information to the different credit bureau.
However, a multitude of companies offer secured credit card and it will be prudent to research best credit card. For newbies applying for a secured credit card, it would be vital to note these cards require a security deposit against credit limit. This’s the only way one will use the card.
The deposit is directed to your saving account serving as collateral. And your amount of security deposit will be equal to the credit limit. The higher the deposit the higher amount you can borrow. Some of the secured credit cards include;
The Capital One Secured Master Card
For clients searching for a credit card, they would find this card to be interesting. It’s among the premier secured credit cards, perfect for clients that want to bounce back from a bad credit card rating. It has some pros and cons just as other credit cards.
The first con of this card is it doesn’t offer a reward for purchases. One will not earn points shopping at any joints. If you apply for the card with the intention to build your score ASAP, the latter con will not suit your goal. The minimum security deposit is an attractive offer. And you might want to consider.
The timely one makes payments the higher your credit limit increases.
The card APR rate is 24.99. These are for purchases and cash advances. This’s a standard rate equivalent to what most secure credit cards charges.
Furthermore, for cash advances, there is an additional fee ranging from 3% to 10 %. And for late payments, a standard charge of $35 applies, however, while using the card, don’t miss out to pay the monthly deposits and use the security deposit as a cover
How To Choose The Best Secured Credit Card
If you are living in this technological society, you will find it hard to operate without a credit card. There are tons of credit cards and tons of companies that sprung up offering new credit cards. However, you don’t just shop for any credit card, but look for that one that will guarantee maximum satisfaction.
Secured credit cards help one to rebuild credit card score as well as provide credit limit against security deposits. And you need to get the maximum secured credit card satisfaction, choose the best-secured credit card.
Ask yourself these question before choosing a secured credit card. What fees are applicable? Different secured cards will have variant charges. There are application fees, processing fees among others.
Is it expensive when compared to other secured cards? Is it within the variable range?. It is insensible to pay expensively for a card if you target to build credit card score unless you anticipate increasing credit card limit,
Investigate the minimum security deposit needed. This‘s used as collateral. Differently secured security deposit varies and it will be prudent to check that you want. If you need to build credit card score, choose the card with the lowest security deposit.
Check the APR rate, if there is room to change the card to an unsecured card and the bank that issues the card. This help investigates other salient issues. There are plenty banks that charge high-interest rate that doesn’t befit a secured credit card.
The Chase Secured Credit Card
This’s a premier credit card that’s issued by the Chase bank.- One of the largest banks in the USA. The card works in a similar fashion as e debit card and it’s perfect for individuals who anticipate rebuilding their credit card history.
The card carries a low annual fee and provides rewards on purchases. Customers can use the secured card to pay bills online safe and sound. Any customer can use this credit card regardless of the geographical distance.
Key Chase Secured Credit Card Features
Since this isn’t the only secure card, one must investigate the salient features to see if it will be worth your dollar. There’re salient features that people who want to bounce back from bad credit card score would consider primarily the APR rate and the minimum deposit required.
As previously stated, this’s a secure credit that charge a low annual fee of $29. This’s one of the lowest charges for most secured credit card and when compared to the Discover’s, one will definitely understand where to place the bet.
You will earn a reward when you use the credit card to make purchases at any outlet. There’re are affiliated sites where one must shop to earn more rewards. Notably, you just have to make purchases from anywhere. You will earn rewards.
The rewards vary thus be sure to confirm with the chase secured credit card customer service for best practices. One will earn a 5%cash back bonus on clothing, travel, restaurants, gas and on other affiliated sites. Other purchases made on unaffiliated joints will warrant a 1%cash back discount.
How To Contact The Chase Secured Credit Card Customer Service.
For customer support in the case, you encounter problems while using the credit card contact via these three means. The chase secured credit card phone number is 1-800-432-3117. For Outside US residents, call via 1-302-594-8200.
You can send your credit card query via mail. Address your mail to Card services, P.O.BOX 15298, Willington, DE 19850. There’s still another online method that one can use as live chat, Chase credit card app and the different social media channels.
It will be vital to note that the chase credit card is not listed among the best-secured credit cards for 2018. It variable APR rate I range from 14% to 26 %.
What You Need To Know About Secured Credit Cards For A Bad Credit.
When you apply for a secure credit card you anticipate to: Rebuild credit card history and to graduate from using the secured credit card to unsecured. To accomplish the latter milestone is one hell of a task and takes time.
However what most people fail to understand how to use these secured credit cards responsibly. Applying for one is not a guarantee for a change in your credit card rating.
If you want to revamp your credit card history- one of the reasons for a secured card- one need to change the previous credit card payment problems that landed him/her on the Low FICO scores.
This way this secured credit cards will help rebuild one to bounce back from a bad credit card rating.
Not all people who apply for secured credit cards have a bad credit card history. Individuals who have no credit history records and want to establish one have higher chances with the secured credit card rather than unsecured.
Reasons That Will Make You Lose Your Secure Credit Cash Deposit
The deposit you make for a secure credit card will be used as a collateral for credit. This implies one can either get the collateral back or not. This is similar to applying for a bank loan. If you default in payments, you will no longer be the legal owner of the collateral and the bank will sell the same to recover their money.
Therefore if you applied for a secured credit card and you have defaulted in payment, the credit card company will evaluate if to use the security deposit for payments or not and there’re chances you won’ get the security deposit back.
Know I hope you understand why the application for the secure credit card is not a passage for building a good credit card score. The secret is to pay your credit card to maintain a good credit card history.
If you can’t rebuild your credit card score, there’re other companies that approve credit card application with a bad credit card history. Even here you will need to pay debts. No shortcuts.
Some Secured Credit Card For Bad Credit
Some of the secured credit card for bad credit include the chase secured credit card, discover secured credit card, and best-secured credit cards among others. There are tons of companied that offer secured credit card for people with b credit card score.
Even if you think you are the one person with the worst credit card history in the US – there‘re credit card companies that’ll approve your credit card application. However, it will be a give and take scenario.
First, the credit card rates might be the highest one for a credit card that you won’t benefit much until you prove you’re willing to change things. Most cards will now move you to the next credit card category that comes with higher perks and good offers.
What Is A Secured Credit Card?
As the name suggests this’s a credit card issued when one deposits a security deposit that will be used as a collateral just in case you default in payments. Individuals who don’t qualify for the unsecured credit card will want to build their credit card history before applying for some selected unsecured travel credit cards.
The secured credit card is their only passport. This is not a unique credit card but it’s similar to the normal credit card however for this one you will need to secure the credit card with a cash deposit. The way these card works is similar to babysitting.
First, you need to open a secured credit card and deposit some cash deposit to your creditor account- the credit card company.
Your creditor will store the deposit in an inaccessible account and the moment you will default in payments, your credit or lender will transfer money from your security deposit to make the overdue payment on your behalf.
The secured credit card is not similar to a prepaid credit card but the deal here is your creditor promises to pay the amount once you default. This is not similar to a promissory note. However, if the creditor continues to clear your payment mess, your credit card rating will drop, irrespective of the use of your own security deposit.
The Benefits and Drawbacks with Secured Credit Cards
The secured credit card is quickly approved since there is collateral, which reduces your creditor’s risks. Furthermore, the secured credit cards charge a lower APR rate than the other credit cards for people with a bad credit card history.
Most of the secured credit cards are issued with a lower credit limit implying you won’t spend much as for unsecured credit cards with no credit limit that may probe impulse buying.
Finally, for individuals who apply and get verified for secured credit cards, they are given the opportunity to graduate to the use of unsecured credit card if they’re worth it.
The major limitation of the secured credit card is one will pay a large sum as initial deposit.
The deposit will vary for different credit cards but the higher the deposit the higher the credit limit and vice versa. Furthermore, the low credit limit may hamper your credit card score.
Secured Credit Card Bottom line
I would recommend you to find a details list of the secured credit cards, investigate the different secured credit card features, to determine the best-secured credit card.
Some Secured Credit Card Features for You to Consider Include: the APR fees, initial deposit, and credit limit. Do some research, collect the different secured credit card limits, initial deposits and APR see to come with the best-secured credit card.
The Bank Of America Secured Credit Card
Some of the key features of the credit card include A regular APR rate of 21.74, annual fee of $39 and no monthly fees. The card credit line range from $300-$4900. The credit line will depend on the amount of security deposit.
The bank of America secured credit card reports accounts information to three major credit card bureaus. This can help rebuild your credit card history especially for individuals with a bad credit card score.
The bank periodically reviews your account and if you do a good job- paying off your debts, you will get back your secured credit card deposit. For clients who have proved to rebuild their credit card history without hitches, they will qualify to apply and get verified for other Bank of America Unsecured credit cards.
Other considerate facts about the credit card include Fraud monitoring, overdraft protections, $0liablitliy guarantee among others. These features are installed for maximum user benefit. Furthermore, the bank of America provides Mobile banking features. Their mobile is available for download and it’s compatible with plenty of devices.
Is The Bank Of America The Best Secured Credit Card?
When compared to other secured credit cards, it’s fair to say some of its features are average. For guys who want to build or rebuild their credit card score, this’s the perfect credit card. Their fixed APR rate and other card features are close to similar secured credit cards.
The application approval process for the Bank of America Secured Credit Card is super –easy. Compared to Discover’s and chase banks’. Furthermore, the secured credit card offers no rewards and incentives which is uncommon for others’.
To get better BoA secured credit card services, one must have a BoA saving and checking account. If you decide to close the BoA saving and checking account to only use their credit card, you won’t access other online banking services.
One of that service is the bill pay feature that one must operate the BoA saving and checking account. The feature is excellent enabling one to make payment to the BoA account from other banks.
This drawback make the BoA secured credit card not to par with others like the Chase, discover among other secured credit cards.
The Discover Secured Credit Card
This is an excellent secured credit card that carries no annual or monthly fee perfect for guys who want to rebuild their credit card history. To get verified, you will pay a refundable security deposit though this is not a guarantee. If you default in payments, you might end up losing the security deposit.
The least security deposit for credit card approval is $200. However, you will have to submit your bank account statements and information for security deposit confirmation. It would be a plus if you operate an account with the discover bank.
Once you’re verified, it’ll take 8 months for the Discover to review your account. This’s to verify if you can graduate to the unsecured credit card. The major benefit of applying for the secured credit card is one earns rewards, unlike the BoA.
You’ll earn 2% cash back at selected joints like the gas station, restaurants, and affiliated shops. There is still 1% cash back on other purchases. This is incomparable with the BoA secured credit card that offers no rewards.
Other considerate facts include: receiving security alerts, using the chip technology and mobile app payment. The card APR rate is 24.49(variable.), no annual and monthly fees. This is an excellent secured credit card.