Secured credit cards work against cash security deposits. They are very useful, especially if you are looking to rebuild your credit score. The deposit usually equals the credit line offered to you. This is held on to by the card-issuer until such time that the account is closed or you move to an unsecured credit card.
Let’s take a look at some of the best, secured credit cards in 2021.
Secured Mastercard from Capital One
The reason this card makes it to the list is the flexibility it offers for your security deposit. It also gives you the rare advantage of increasing your credit line beyond your initial deposit. It’s a top choice for someone starting with a credit card, though it may not be very suitable for someone who has a damaged credit score. Moreover, it has no noticeable rewards program, and some cardholders may find that the APR is too high.
Discover It Secured Credit Card
No annual fee, no penalty APR, 1% unlimited cashback on all purchases, plus a 2% cashback if you spend up to USD 1000 on gas and restaurants every quarter. You can start with a minimum deposit of USD 49 that will offer you a credit line of USD 200. You can also increase your credit line by increasing your deposit (the maximum is USD 1000).
OpenSky Secured Visa Credit Card
If your credit is badly damaged, this card might be the right pick for you. The card does not involve either a credit history check or a bank account. It also has a fairly low annual fee of USD 35, and the APR is manageable as well. The security deposit starts at USD 200 and goes up to USD 3000.
Citi Secured Mastercard
Here is a card that offers no rewards and no frills. However, you also don’t have to worry about fees charged upfront or an annual fee that other secured credit cards might charge. Best to pay on time and not keep a balance on this card because it has a high APR. The incentive is that you can upgrade to an unsecured card if you pay on time for 18 months.
U.S. Bank Secured Visa Card
If you’re looking for a higher credit limit, this might be the card for you. It’s a basic card with no annual fees and a decent APR. The credit limit can be increased to USD 5000, depending on your security deposit. You can also set up auto bill pay to avoid late payments.