Just because your credit score and history in 2013 was not perfect that does not mean you cannot make an effort to improve your credit in 2014. Secured credit cards are one of the best options to reestablish your credit. These cards are designed for people who cannot obtain a credit card elsewhere due to bad credit.
A secured card is one that requires a down payment of cash to use as collateral to open an account. The amount you use as a down payment establishes your credit line for that card. So by putting down $300 in cash to open a secured credit card, your credit limit would be that amount.
Like all other credit cards, there are variations on what particular secured credit cards have to offer. Some offer low interest rates with little to no perks, and others offer higher interest rates with some valuable perks.
As 2013 comes to a close, check out this list of the best secured cards for this winter.
U.S. Bank Secured Visa Credit Card
Allow the money you put down to collect interest with a U.S. Bank secured Visa card. A savings account that earns interest is opened and left untouched as long as your account is open and in good standing. The credit card makes up for its high 20.99% APR by providing car rental discounts. It also allows you the possibility to upgrade to a regular credit card within as little as a year if you pay your monthly bill on time.
- 20.99% APR
- 23.99% APR (for cash advances)
- $35 annual fee
First Progress Platinum Elite MasterCard Secured Credit Card
For those looking simply to just reestablish their credit, the First Progress Platinum Elite MasterCard Secured Credit Card is worth noting. All applicants are approved as long as a deposit of at least $300 is made into the account. The amount deposited does not collect interest, but you do gain a sense of security in knowing that you will be approved for this card.
- 19.99% APR
- 24.99% APR (for cash advances)
- $29 annual fee
First Progress Platinum Prestige MasterCard Secured Credit Card
The First Progress Platinum Prestige MasterCard Secured Credit Card is another solid secured card. It works just the same as the Platinum Elite MasterCard Secured Credit Card, except for one key difference. For a higher annual fee, you can open a secured credit card account that has a lower interest rate. The interest rate on this credit card is 11.99 percent APR. If you can spare the annual $44 fee, this card may be worth it.
- 11.99% APR
- 18.99% APR (for cash advances)
- $44 annual fee
Capital One Secured MasterCard
When you open a Capital One Secured MasterCard, you gain the unique option of one day increasing your line of credit without having to make any additional deposits. Make all of your monthly payments on time and you could be eligible for a credit line increase.
- 22.99% variable APR
- $29 annual fee
- Free CreditInform membership
- Opportunity for credit line increase with no additional deposit
Wells Fargo Secured Visa Credit Card
Looking for a secured credit card with a high credit limit? Get a credit line of up to $10,000 with the Wells Fargo Secured Visa Credit Card. You can still open an account with as little as $300 down, but you have the option to significantly increase your credit limit with additional down payments.
- 18.99% variable APR
- $25 annual fee
- $300-$10,000 credit limit