Best Secured Credit Cards

People with bad credit or no credit can establish or build a credit history through secured credit cards. The card issuer is going to report your payment history to the 3 major credit bureaus every month. You can apply for secured credit cards online, but you will not receive the card until you have deposited an amount into a bank account. The amount of money deposited now become your credit line on the secured credit card, which can be used just like a regular credit card in stores, for car rental reservations or cash advances. You can be approved regardless of credit history and choose your own credit line, since there is no risk for the card issuer. Credit history is not going to be built or established overnight, but requires patience that will be rewarded down the road. Once you have had the secured credit card for 9 to 12 months you can try to request an upgrade to an unsecured credit card or submit an application with another card issuer.

Applied Bank® Secured Visa® Gold Credit Card

Choose Your Credit Limit - Simply open an FDIC Insured Deposit Account in your name at Applied Bank.
Your deposit will secure your new Visa Credit Card with a credit limit equal to the amount of your deposit - from $200 up to a maximum of $5,000.
Guaranteed Approval Regardless of Your Past Credit History.
9.99% Low Fixed APR - Your Rate Won't Change Even if You Are Late.
Highest Ratings for Financial Strength and Security in the Country.

Introrate (purchases)

N/A *

APR (purchases, fixed*)

9.99% *

Annual fee

$50.00 *

How to Establish a Credit History

Having a credit card is almost a necessity. Not only is it convenient to carry a card that is accepted worldwide, but it can also be the required payment method. When checking in at a hotel, you may need to have a credit card on file even if paying cash. This will allow the hotel to charge for any damage to the room, and also for any use of the mini bar. Car rental companies also need the ability to charge in case of damage, so traveling really becomes a hassle without a credit card.

Individuals with no prior credit on their report are finding out how difficult it is to establish a credit history. There are very few creditors wanting to be the first to risk their money, without knowing the likelihood of being paid back the loan. Someone denied credit is probably going to continue to submit applications, and probably also going to continue being denied. The reason is that new creditors can see the recent denial of credit, which is going to decrease your chances of approval.

There are a couple of guaranteed ways to build your credit. The best way is through a joint account, which makes you an authorized user and the activity is reported monthly to the credit bureaus for as long as your name is on the account. The joint account holder does take a risk, and therefore it may not be possible to find a willing participant.

Secured credit cards are also guaranteed to build credit. The way it works is by establishing an interest bearing savings account with the card issuer, where the balance is used as collateral towards your credit line. However your payments must be made like a regular card and the security deposit can not be used for that purpose.

Fees are unavoidable when it comes to secured credit cards, whether it is an application fee or annual fee. Considering the card can be cancelled once you have proven to be a responsible borrower, it is a small price to pay.

* Please see the online credit card application for details about terms and conditions. Reasonable efforts are made to maintain accurate information. However all credit card information is presented without warranty. When you click on the "Apply Now" button, you can review the terms and conditions on the credit card issuer´s official website.