Bad credit can affect your life in more ways than one. Luckily, there are things you can do to help build up your credit such as signing up for a secured credit card. This is a simple card that requires you to put down a deposit that more often than not matches your credit limit on the card. Should you fail to make payments, this deposit is taken from a designated account and used to pay off what you owe to the card issuer. In this post, we’ll take a look at the top 5 best secured credit cards for 2018 as well as the unique selling point for each card.
The Wells Fargo Secured Credit Card
This is a card that offers low interest rates as well as the ability to keep up with your credit card use via email alerts. In order to get one, you’ll have to put down a minimum amount of $300 which is usually refundable as long as you don’t go into delinquency with regard to paying off your credit card payments and bills. It comes with an 18.9% APR which can be considered to be decent for most credit cards. With a low annual fee of $25 as well as a 25-day grace period, this is one card that gives other secured credit cards a run for their money. Lastly, you may be able to qualify for an unsecured credit card if you make your payments in time for up to a year.
The BankAmericard ® Secured Credit Card
We decided to feature this card because it has a high grace period as well as low annual fee among other benefits. The APR on this card stands at 20.24% which isn’t exactly the best, but not the worst either. You don’t get charged a cent if you apply for this card, and you only pay an annual fee of $39. It comes with no monthly charges, and bundles travel accident insurance for those of us who find themselves on the road every other day. You will however be required to put down a $49 security deposit and $300 at the time of signing up and allows you to qualify for a real credit card should you make your payments on time. This, however, is at the discretion of the Bank of America, the card issuer.
The Capital One ® Secured Credit Card
This card is issued by Capital One Financial, one of the most recognized and biggest banks in the country. You won’t get charged an application fee, and with a low yearly fee of just $29, it is obviously a winner. The bank also reports automatically to all three major credit bureaus once you start using the card which is essentially a good thing since it’s this kind of prompt reporting that will go a long way in rebuilding your credit score. Lastly, the card is served by a responsive 24 hour customer support team. Your credit line with the Capital One ® secured credit card ranges between $200 to $3,000, and comes with an incredible 50 cents interest charge.
Whatever card you choose to pick, please be aware that these cards should be used to specifically build your credit score so you can reclaim the benefits of having a high score.