Even though credit card companies make money on consumers who use them poorly, a consumer with poor credit will have a very hard time getting approved for an unsecured line of credit. One of the few ways someone with a bad credit history can improve their credit score is by signing up for a secured credit card. A secured credit card is similar to an unsecured credit card except for one key fact. Secured cards require an initial deposit. If a cardholder doesn’t make payments, the credit card issuer can simply draw from the deposit.
Unfortunately, many secured credit card include high fees and unfavorable card terms. As a result, finding a quality secured card can be difficult. This is a short list of the best secured credit cards available for consumers today from our list of credit card offers for 2013.Fees, rewards and overall usability were taken into account when organizing this list. All of the cards listed here report to the three major credit bureaus, so if used wisely they will be helpful in building or repairing your credit.
Platinum Zero® Secured Visa® Credit Card from Applied Bank®. One of the best benefits of this card is that card holders can make all purchases without paying interest. In exchange for this benefit, Applied Bank makes up for the 0% APR with a $9.95 monthly maintenance fee. The credit line on the Platinum Zero® Secured Visa® Credit Card from Applied Bank® can be anywhere between $500 and $5,000. If you need to make a cash advance, which should be avoided if at all possible with any secured credit card, the cash advance APR is 9.99% fixed.
Applied Bank® Secured Visa® Gold Credit Card. The Applied Bank® Secured Visa® Gold Credit Card does not change an account set up fee or a monthly maintenance fee however they charge consumers a $50 annual fee. There is no grace period for purchases, so the interest rate will be charged the day following all purchases. This card comes with a fixed 9.99% APR and the credit limit can be between $200 and $5,000.
For someone building or fixing their credit — an important factor when you need to acquire a loan or mortgage within a year or two — secured credit cards are good options when unsecured cards are unavailable for any number of reasons. The fees or high interest rates, as listed above, do not make these cards great options for everyday spending. Those who do need a secured credit cards should think about moving to unsecured credit as soon as possible, and as listed above, some of these cards make that transition process simple.
Updated May 1, 2013 and originally published March 18, 2011. If you enjoyed this article, subscribe to the RSS feed or receive daily emails. Follow @flexo on Twitter and visit our Facebook page for more updates.