The 5 Best Secured Credit Cards: Spring 2013

Simon Zhen

By , Staff Writer
Posted on Tue May 7, 2013, Last Updated on Sat Sep 21, 2013

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UPDATE: Check out the Top 5 Secured Credit Cards: Fall 2013!

With little or poor credit, you’re most likely going to have a difficult time getting approved for an unsecured credit card. Oddly, to demonstrate your ability to handle responsibility, you need have line of credit, which puts you in a catch-22 situation.

Using a secured credit card, you can show that you are able to manage a credit card responsibly without too much risk to the lender. Secured credit cards tend to come with annual fees and they require you to provide collateral in the form of cash deposits, which also determine the spending limits on the secured credit cards.

As you make payments toward a secured credit card, card activity is reported the credit bureaus. In time, you’ll be eligible to apply for an unsecured credit card.

There is a sea of secured credit cards available to you, but many of them charge high annual fees, impose an absurd interest rate, or both. Here are five secured credit cards that should be among your top choices if you’re looking to improve your credit history:

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Post a Comment

  • Mike

    This author must be mistaken by the definition of “best” that is to say the least. Visit Digital Credit Union (DCU.Org). They offer a secured credit card with NO annual Fee, 11.50%, 0% cash advance fee, 0% balance transfer fee. Never pay an annual fee if you don’t have to.

    • Frederick Nelson

      Digital Federal Credit Union requires that you have good credit in order to be approved for this secured credit card. If you’re looking to rebuild your credit, this is not the right card for you. There are secured cards offered by other banks which are designed to help people with bad credit improve their credit history and credit score. Not this one. Don’t waste an inquiry on your credit report which will have some negative impact on your credit score trying to apply for this card. Go with what the Author recommends.

    • doctorofcredit

      You need to be a member of DCU though and that requires a yearly donation of at least $15.