Secured credit cards are a good way to begin building credit. This card requires that you make a deposit and then pay the minimum monthly installment. The best situation is to pay the full balance each month. After closing the account, any deposits made are refundable. You can keep your card open for several years before having to start paying back the balance.
Capital One Platinum Secured credit card
The Capital One Platinum Secured Credit Card is a great way to start a credit history if you've previously had trouble making payments. A low deposit of $49, $99 or $200 can be used to start your credit history. Capital One allows you to pay your deposit over time. You can also mail your card after you have paid. It's possible to expect a credit limit of $1,000, so it's worth looking into.
Capital One Platinum Secured card comes with a $200 initial credit limit. This limit can be increased by adding $800 to your initial deposit. You can apply for higher credit lines by increasing your deposit after six months. In fact, after six months you can increase your credit limit up to $1,000. This is a great opportunity to build your credit and improve your score. Make sure that you pay all your bills on time.
Find it Secure
The Discover it Secured credit card is an excellent option for anyone wishing to build a positive credit history. This card comes with no annual fee and no minimum balance. It will help you rebuild credit and earn rewards. It is especially useful for students as there is no annual fee, and you can transfer your balance to an unsecured Discover card after seven months of good payment behavior. Once you've been responsible with your card, you can graduate to a more secure card without a security deposit.
Discover it Secured credit-card features include $0 annual fee, foreign transaction fees free of charge, and late payment fees. You can avoid late fees by paying all of your bills on time. International purchases are exempt from fees. Balance transfer fees only 3 percent of the total balance transfer amount in the first 6 months and then they go up to 5 percent after that. These fees make building credit relatively affordable.
Citi Secured Mastercard
While there are many great secured credit cards, the Citi Secured MasterCard stands out as a top choice. This credit card offers a low security deposit, ranging from $200 to $2,500. It allows you to build credit and teach responsible financial habits. In return for a card with no annual fee, you can use it for up to a year and then upgrade to a higher limit if you're ready.
Citi Secured Mastercard offers a zero-dollar annual fee. This is a rare feature among secured credit cards that charge high annual fees and offer very few benefits or perks. Many unsecured credit card building cards also charge eye-popping fees each year, which tends to increase the cost of the card after the first. This card will increase your monthly bill even though it has a low annual charge.