Top 6 Secured Credit Cards | What is a Secured Credit Card? Guide, Rankings, and Reviews

RANKING & REVIEWS
TOP RANKING BEST SECURED CREDIT CARDS

Introduction: The Best Secured Credit Cards for Poor Credit and How to Apply for a Secured Credit Card

In years past, finding a credit card with bad credit was like trying to find a needle in a haystack. Credit card companies used to be the privilege only of people with good credit. The problem, of course, was that without access to a credit card, it’s not easy to rebuild your credit.

Many people were left for years without an elemental aspect of our money management and financial livelihoods. Secured credit cards with low deposit, however, have arrived to change that dynamic.

Award Emblem: Top 6 Secured Credit Cards

As the credit card industry has grown ever more competitive, more and more secured credit cards are beginning to pop up from banks. Bad credit secured credit cards are available to almost anyone, making it easier to gain access to credit and avoid loan sharks. A secured credit card for bad credit is often considered the best way to rebuild credit quickly. 

In this brief article, AdvisoryHQ will begin by answering, “What is a secured credit card?” We will then go on to explore the best secured credit cards for bad credit on the market today.

We’ll also look at the benefits that come with having secured credit cards with low deposit, including finding secured credit card with rewards programs. We’ll end by offering a detailed review of the best secured credit cards for bad credit.

See Also: Best Credit Cards for Bad Credit | Ranking & Reviews | Bad Credit Cards

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Banks that offer secured credit cards understand that the millions of people with bad credit or no credit want access to a credit card and that these people represent a huge potential client base. At the same time, these banks with secured credit cards also know that some people with bad credit pose a financial risk for them. 

In order to gain more customers while minimizing the financial risk of clients unable to repay their debt, many banks and other financial institutions have begun offering secured credit cards for poor credit.

A secured credit card for bad credit works just like a regular credit card, as you can use it anywhere the major credit card companies (such as Visa or MasterCard) are accepted.

The main difference between secured credit cards for poor credit and regular credit cards is that the credit line on a secured card is determined by a cash deposit that you put on the card. A secured credit card for bad credit, then, allows the consumers to benefit from a plastic payment option while also limiting the risk to the issuing company.  

AdvisoryHQ’s List of the Top 6 Best Secured Credit Cards for Bad Credit

List is sorted alphabetically (click any of the credit card names below to go directly to the detailed review section for that credit card):

• BankAmericard® Secured Credit Card
• Citi® Secured MasterCard®
• Commerce Bank Secured Visa Credit Card
• Discover it® Secured MasterCard
• Fifth Third Secured MasterCard
• Capital One® Secured MasterCard®

Secured Credit Card for Bad Credit Names	APR % for purchases	Late Payment Penalty Fee	Annual Fee
BankAmericard® Secured Credit Card	20.49%	$37	$39
Citi® Secured MasterCard®	22.24%	$35	$0
Commerce Bank Secured Visa Credit Card	18.49%	N/A	$49
Discover it® Secured MasterCard	23.24%	$37	$0
Fifth Third Secured MasterCard	24.24%	$35	$24
Capital One® Secured MasterCard®	24.99%	$37	$39

Table: Top 6 Bad Credit Secured Credit Cards| Above list is sorted alphabetically

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The Benefits of the Best Secured Credit Cards for Bad Credit

When you apply for a secured credit card, you are gaining access to an electronic payment option that is almost a necessity in today’s world. Without a piece of plastic in your back pocket, you will most likely have to endure long lines at the bank on a daily basis or get used to carrying around a wad of cash with you wherever you go. A secured credit card for bad credit allows you the ease of plastic payment which is now accepted almost universally. 

Furthermore, secured credit cards for poor credit also help you build your credit score quickly and efficiently. If you’ve defaulted on a personal loan and have seen your credit score dip below that dreaded 600 mark, a secured credit card for bad credit can allow you to start the process of rebuilding your credit history. 

Almost all banks that offer secured credit cards report to the major credit bureaus, meaning that these bureaus will see that you are responsibly using a credit card option and thus raise your credit score. If you want a better credit rating in order to apply for a car loan or a mortgage, secured credit cards for poor credit are often the best option. 

While some people may scoff at the idea of paying a deposit, there are virtually no secured credit cards for bad credit with no deposits. Furthermore, the deposits on many bad credit secured credit cards is also refundable if you use your card responsibly. 

Don’t Miss: Best American Express Card Offers & Benefits | Ranking | Compare Top AMEX Card Offers

Secured credit cards with low deposit are usually the best available option for people who want access to an electronic payment option but simply can’t apply for a regular unsecured card because of their low credit score. Furthermore, many foreign nationals who don’t have citizenship can still apply for a secured credit card. Some banks that offer secured credit cards will grant foreign nationals access to electronic payment options through the best secured credit cards for bad credit. 

Furthermore, if you and your family have been dreaming of buying your first home but the bank is offering you a high mortgage rate, it might be worth your time to find out what is a secured credit card. By responsibly using secured credit cards for poor credit, you can quickly raise your credit score and may be able to apply for a better mortgage rate. 

Lastly, though you may not be able to find any secured credit cards for bad credit with no deposits, a secured credit card with rewards programs may make your initial deposit well worth it. If you can earn cash back on your purchases with a secured credit card for bad credit, you may earn enough money to cancel out your initial cash deposit which gives you your credit line. 

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AdvisoryHQ’s Selection Methodology

What methodology does AdvisoryHQ use in selecting and finalizing the credit cards, financial products, firms, services, and products that are ranked on its various top rated lists?

Please click here “AdvisoryHQ’s Ranking Methodologies” for a detailed review of AdvisoryHQ’s selection methodologies for ranking top rated credit cards, financial accounts, firms, products, and services.

Detailed Review – Top Ranking Best Secured Credit Cards for Poor Credit

Below, please find the detailed review of each credit card on our list of banks that offer secured credit cards. We have highlighted some of the factors that allowed these secured credit cards for bad credit with no deposits to score so highly in our selection ranking.

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