After you’ve been turned down for multiple credit cards, you might feel that you’ll never get the credit you need. It’s discouraging, to say the least. But if you don’t have a credit history or if you have a low score, getting a card is one of the best ways to build your credit history.
This is easier said than done, especially since banks don’t always make the process easy. The truth is, you’re not going to qualify for any and every card on the market. When applying for credit, you need to take your credit health into consideration, and then look for cards designed specifically for people with a low score or no credit.
It might take time to find the right credit card, but there are cards that everyone can get. Instead of applying for major cards, learn about secured credit cards.
Features of a Secured Credit Card
Although secured credit cards are an option for people with no credit or bad credit, these aren’t bad credit cards. Anyone can apply for a secured credit card, and most people who apply are approved. You’ll receive a credit line like any other credit card, and the bank that issues your card will report your activity to the credit bureaus. If you consistently submit on-time payments each month, your creditor reports this positive activity and your credit score gradually improves
The primary difference between secured credit cards and other cards is that they require a security deposit. The average minimum deposit is $250 to $500. Deposits secure the credit line, just in case you default. Understandably, it’s not the most desirable feature. But after 12 months of timely payments, some banks refund deposits and offer cardholders unsecured credit cards.
Here are three options if you’re looking for a secured credit card to build or establish your credit.
Capital One Secured MasterCard
Apply for this secured credit card and you’ll receive a credit line up to $3,000, depending on your security deposit. Capital One reports activity to the three major credit bureaus on a regular basis. Thus, the more timely payments you submit, the more options to increase your FICO score. Use this credit card wherever MasterCard is accepted. There is a $29 annual fee.
The Secured Visa from Merrick Bank
There is no processing or application fee; and similar to the secured MasterCard offered by Capital One, you’ll receive a credit line up to $3,000. This bank reports regularly to the credit bureaus. Maintain an excellent payment record and you might qualify for credit line increases with no additional deposit. There is a $36 annual fee.
First Progress Platinum Select MasterCard Secured Credit Card
Whether you have no credit or poor credit, this card will help you achieve an A+ rating. Submit your application and security deposit, and enjoy a credit line between $300 and $2,000. Monthly reporting helps build your score faster; and with 24/7 access to your account, you can monitor your credit activity and make payments online anytime. There is a $39 annual fee.