Credit score guides to obtain the best secured credit cards 2021? If your issuer can’t or won’t upgrade you — and keep in mind that not all secured-card issuers even offer unsecured cards — you can apply for unsecured cards separately. Eventually you’ll want to close the secured card to recoup your deposit. Several issuers specialize in unsecured credit cards for people with bad credit, but NerdWallet generally doesn’t recommend them. That’s because these “subprime specialist” cards tend to charge high fees that can easily add up to much more than a typical minimum security deposit — annual fees up to $99, application fees, “activation” and “processing” fees, monthly maintenance fees and so on. And unlike the deposit on a secured card, those fees are money you can’t get back. Our roundup of the best and worst cards for bad credit has more information on cards to avoid.
Applicants do not have to have a credit history, and Capital Bank will not run a credit check. As with most secured credit cards, your credit limit is determined by the amount you deposit, between $200 and $3,000. We like that the annual percentage rate for purchases isn’t as bruising as with some secured cards. You’ll pay 17.39% variable APR, which is higher than standard credit card interest rates, but lower than the 20% APR or higher you’ll find on other cards. You don’t need a bank account to apply. The APR is relatively low compared with other secured credit cards. 17.39% variable APR.
You don’t have to undergo a credit check to apply, and you don’t need a bank account to qualify. If these are areas of concern for you, the OpenSky® Secured Visa® Credit Card is definitely worth a look. If not, there are better (and cheaper) alternatives. The issuer doesn’t run a credit check on OpenSky® Secured Visa® Credit Card applicants, making this an attainable option for people with severely damaged credit. You can make your deposit — minimum $200, maximum $3,000 — and pay your bills with a debit card, wire transfer, check or money order, making it one of the few secured cards that doesn’t require a traditional bank account.
The ideal recipient of a secured credit card is someone who has never owned a credit card or any other type of credit account, such as a loan. Such prospective customers have what’s known as a “thin file”, with minimal data at credit bureaus about their payment activity, and so will especially benefit from the credit history a secured credit card will help to build. Those with poor or bad credit, because of irresponsible credit behavior in the past, can potentially gain the same advantage from a secured card. More even than credit newcomers, these customers’ actions—such as habitual late payments, credit defaults, and bankruptcy declarations—can make lenders apprehensive. And that can leave those consumers with few if any options to rebuild their credit other than a secured card.
The extra security for the lender means they are more comfortable offering credit lines to borrowers without a credit check, as they already have the means to clear the balance if necessary. For borrowers, secured cards are beneficial as they offer access to a credit card without a credit check of any kind; ideal if you have bad or no credit. Ultimately, secured cards are the best way of obtaining a credit card and building a decent credit history if you do not pass credit checks for standard cards. Below, we’ll delve into the best-secured credit cards– so you can peruse the options, and make the decision that makes the most sense for you and your financial history. So, let’s dive right on in… See extra details on best secured credit cards.