Secured credit cards are a credit-building lifesaver if you have been unable to get a credit card due to poor or lack of credit. Although you have to make a deposit (which is held as collateral), secured credit cards can not only help you get a credit card but can also help you build or improve your credit. Finding the right secured credit card with the best perks can be very difficult if you don’t know what’s available. Here is a list of the top 10 best secured credit cards for bad credit and special features of each one.
- Capital One Secured Credit Card
Although this secured credit card may charge you up to 22.9% in interest, you may start with a $200 credit limit by depositing as little as $49. As you prove your creditworthiness, they may increase your credit limit without requiring a higher deposit. It has a low, $29 annual fee. - Citi Secured MasterCard
This card charges an 18.24% variable APR but only charges a $29 annual fee. Citi puts your deposit in an interest-bearing CD. This card even offers some of the perks of a traditional, unsecured card, such as retail purchase protection and car rental insurance. - Digital Federal Credit Union Secured
This card has an APR of only 11.5% and charges no annual fee and no fee for cash advances. The DFCU does not even charge a higher interest rate on cash advances--a rare characteristic indeed. - U.S. Bank Secured Visa
Although this card has a purchase and balance transfer APR of 20.99%, it has an annual fee of only $35 and no other fees. Your deposit, which can be from $300 to $5,000, is put in an interest-bearing savings account. It also offers benefits like car rental discounts and fraud protection. - Wells Fargo Secured Card
This card, with its 18.99 APR, may not be the best for you if you have a habit of carrying a balance, but it hits a home run with it's low annual fee of $25. With good payment history, Wells Fargo offers the option to convert to an unsecured card. - Applied Bank Platinum Zero Visa Card
Although this card has a $9.95 monthly maintenance fee, it does not require a credit check and charges no monthly interest on purchases. It’s ideal if you typically carry balances on your credit cards. - Harley Davidson Secured Credit Card
This card charges a high 22.99% annual fee but no other fees. It has a 24-day grace period and even gives rewards point for each $1 spent, which are redeemable for gift cards. - Navy Federal Rewards Secured Card
This card is designed for military personnel and their families and offers a low 8.99% APR and no annual fee! This card is one of the best options if you qualify because it also rewards you for money spent. After a year of good payments, the card can be converted to an unsecured credit card. - USAA Secured Credit Card
This card is also for military personnel and their families. You deposit from $250 to $5,000, and that’s the amount of your credit limit. The deposit is put into a 2-year interest-bearing CD. It offers a low 9.39% interest rate and a $35 annual fee. - 10. Unity Visa Secured Credit Card
This card has a 6-month, 9.95% interest rate that switches to 17.99% after the introductory period. The $35 annual fee is the only fee you’ll pay. You can deposit from $250 to $10,000.
If you decide to look for a different unsecured credit card, look for one with a low interest rate, low annual fee, and ideally, one that puts your deposit into an interest-bearing savings account.
