Many people looking for a credit card when they don’t have established credit or need to rebuild damaged credit, have a few options. A Secured credit card is the best credit card option to choose in these situations. These cards require a deposit usually equal to your credit line. Other credit cards do offer unsecured credit card options for bad credit, but these options often come with higher interest rates and fees. If you are determined to rebuild or establish credit start with the following cards. Remember using credit cards not only regularly but, responsibly will help improve your credit score.
Discover It Secured- A great option for a secured credit card. This card requires a security deposit starting at $200. You can put up to $2,500 for a deposit. This card does not have an annual fee and you can earn 2% cash back at restaurants and gas stations and 1% on all other purchases. Discover will match all the cash back earned at the end of the first year of opening the account.
Capital One Secured Mastercard- Another great secured credit card option. This card doesn’t have an annual fee. You will have an initial $200 credit line after making your security deposit in the amount of $49, $99 or $200 based on your credit. If used correctly in the first 5 months by paying monthly payments on time you could qualify for a credit line increase with no additional deposits.
Citi Secured Mastercard- Flexible payment due dates and free FICO score access makes this secured credit card a great option for rebuilding your credit. A security deposit between $200 and $2,500 is required and the deposit amount will be your credit limit.
Secured credit cards still check credit scores and you can be denied for these cards just like unsecured cards.