The Best (and Worst) Secured Credit Cards for Rebuilding Credit
This list of popular secured credit cards should be a valuable resource for all of you. Going forward, when I review a secured credit card, I’ll rank it and add it to this list so we have a “master list” of secured credit cards.
I’ve ranked them in tiers: Top, middle, and bottom. Nothing fancy. I reviewed every aspect of each card and even took into consideration some intangibles, such as customer service. With almost any credit card you have — whether it’s secured or unsecured — you’ll encounter issues from time to time. I learn a lot about customer service and other issues from all the emails and comments I get from readers. I appreciate this valuable information. See, I listen to y’all!
Don’t despair if you can’t qualify for a secured credit card in the top tier. Just use this list as a starting point to examine choices. I put them in a ranked order to give you an idea of which cards to look at first, second, third and so on. Just proceed with caution the further you go down the list.
If you only qualify for a secured credit card in the bottom tier, you need to be on your toes and be aware of what you’re dealing with. Keep in mind that I have a lot tips on my site to help you survive the experience while you rebuild your credit. I do understand that there are situations where you simply can’t qualify for better options.
The Top Secured Credit Cards
The APR is a variable 8.99 percent, you get one point for every dollar spent, and there’s no annual fee. The downside, though, is that to be eligible for this card, you have be in the military or related to someone who is.
You get a variable rate of 9.9 percent, which is almost as awesome as the APR for the top-rated Navy Federal card. Unfortunately, it shares the same downside. To be eligible for this card, you have be in the military or related to someone who is.
Citibank invests your deposit in an 18-month Certificate of Deposit (CD) savings account. You’ll earn 1.01 APY (annual percentage yield) on your deposit. You get a variable rate of 18.24 percent. The annual fee is $29 per year.
You get a variable rate of 18.99 percent. The annual fee is $25 per year. If you use the card responsibly, you’ll be considered for an unsecured credit card.
You get a variable rate of 20.99 percent. The annual fee is $35 per year. After 12 months of responsible use, you’ll be considered for an unsecured credit card.
The Middle Secured Credit Cards
#6: Capital One Secured MasterCard Credit Card
This card almost makes the top tier. You get a variable rate of 22.9 percent. The annual fee is $29 per year. Capital One doesn’t charge foreign transaction fees so if you have bad (or limited) credit and you need to travel overseas in the near future, this is a very good choice.
#7: BankAmericard Secured Visa Credit Card
You get a variable rate of 20.24 percent. The annual fee is $39 per year. If you use the card responsibly, you’ll be considered for an unsecured credit card.
#8: First Progress Platinum Secured MasterCard Credit Card
The APR is a variable 14.99 percent, which is very good. The annual fee is $39 per year. The downside is that they put a 10-day hold on your payment, which can create confusion about how much available credit you have.
The Bottom Secured Credit Cards
#9: First PREMIER Bank Secured Credit Card
You get a 19.9 percent APR, which isn’t bad for a secured card. But there are so many other fees to worry about, it’s not worth it. And you definitely don’t want to move up to this bank’s unsecured credit card, which has a 36 percent APR.
#10: Applied Bank Secured Visa Gold Credit Card
You get a fixed rate of 9.99 percent, which sounds like a dream for a secured credit card. But wait, it can turn into a nightmare in a hurry. There is no grace period, which means you can’t avoid paying interest. The annual fee is $50 per year.
#11: Open Sky Secured Credit Card
You get a variable rate of 14.25 percent, which is very good. The annual fee is $50 per year, which is a bit high. There is no grace period, which means you can’t avoid paying interest. Interest starts accruing when your purchase is posted to your account, which is very, very bad for your wallet.
#12: The Matrix Secured Credit Card
There’s also an unsecured version of this card. The APR is a variable 29.9 percent, which is ridiculously high. The annual fee is $75 per year. You get a $300 credit limit, but the $75 is removed right off the bat. So your credit limit is only $225. There’s a $12 a month maintenance fee, which is waived for the first year. To get a feel for this card, I recommend reading the comments section following my review. My readers have been very generous about sharing information.
Note: Credit card agreements change frequently. So my reviews were based on the information that was in effect on the posting date. Be sure you read all the disclosure statements carefully so you’re aware of any changes.
Tags: Citi Secured Mastercard, Credit Cards, Rebuilding Credit, Secured Credit Cards, The Best Secured Credit Cards, The Top Secured Credit Cards, The Worst Secured Credit Cards, U.S. Bank Secured Visa Card, USAA Secured Credit Cards, Wells Fargo Secured Card