What is a secured credit card?
A secured credit card is an instrument that allows you to start or repair your credit history. It works safely for the institution that issues it since you must first make a deposit that will be the one that establishes your line of credit. That is, if you give the bank $ 5,000 to get your guaranteed card, the credit line will be for the same amount. Thus, the bank will be protected if, for any reason, you stop paying. After some time (varies with each institution), you will have back the initial amount with which you opened the plastic, and you can request a new card from the bank.
What banks issue them?
As of today, most important 3 institutions continue to issue guaranteed credit cards. Although banks do not talk much about them, you can request a guaranteed card if you wish and the institutions that issue them must process them.
Are they really a good option?
If you want to start or improve your history, yes. In addition to being a good financial tool, it can be your opportunity to show the bank that you have the ability to handle a credit card well. Another advantage is that guaranteed credit cards give you virtually the same benefits as a normal credit card (points for your purchases in your loyalty program, interest-free month promotions, etc.)
List of best-secured credit cards 2020
|CITI® SECURED MASTERCARD®||⭐⭐⭐⭐⭐|
|The Capital One Secured MasterCard||⭐⭐⭐⭐⭐|
|OpenSky Secured Visa Card:||⭐⭐⭐⭐|
Best secured credit cards 2020: Citi® Secured Mastercard
|APR Intro||APR Tranf. Balance||APR Variable||Annual cost|
|N / A||N / A||27.74%||None|
Best secured credit cards 2020: The Capital One Secured MasterCard
The Capital One Secured MasterCard is one of the few guaranteed cards that allows you to make a security deposit less than your credit limit. This makes this the best card for those with a fixed income who cannot pay their deposit in advance. In fact, this card allows you to pay your deposit in installments, provided that the total amount is paid within 80 days of its approval. If you pay the minimum deposit required, depending on your creditworthiness, you will get an initial credit line of $ 200.
Requirements, fees & APR:
Although the Capital One Secured Mastercard has a relatively high variable APR 24.99%, it has no annual fee. The late payment fee is $ 35.
Best secured credit cards 2020: OpenSky Secured Visa
The OpenSky Secured Visa secured credit card is a great alternative for those who want to open credit in the United States, want to have their first credit card or those who want to repair bad credit. In this analysis, we show you everything you need to know about this card and how you can get the most out of it.
Best secured credit cards 2020 analysis
The OpenSky Secured Visa secured credit card is one of the best-secured cards of 2020 for someone who wants to start their credit, has had a bankruptcy or wants to repair their bad credit. That is why we recommend this card in our list of the best-secured credit card.
This card fills a market need. If some of you are struggling to recover economically and know that you probably cannot be approved for a card if you are scrutinized. Then we applaud Capital Bank for offering this card and avoiding credit checking.
We have received criticism about customer service. Some have complaints, but others had a good experience. If you get this card, we would like to know your opinion about customer service or anything else you would like to share.
Now, this is a golden opportunity to rebuild your credit. Therefore, keep balances low, pay the bill in full before maturity, and be optimistic. Also, pay all your bills on time. Payment history is an important part of your FICO credit score. Do a great job with this card, and you will return to the road to good credit.
OpenSky Secured Visa credit card: Fees and charges – Best secured credit cards 2020
As mentioned, the annual percentage rate on the OpenSky secured credit card dropped a bit. Actually, it is a good price for a credit card with a deposit.
Annual percentage rate: You get a variable rate of 17.39 percent.
Balance transfers: Not applicable.
The annual percentage rate for cash advances: Receive the same rate you make for your purchases, which is currently 17.39 percent. The transaction fee is 5 percent. Keep in mind that the interests of a cash advance are put into motion immediately.
Penalty fee: It is 21.50 percent. You will get this rate if you make a late payment. To avoid such a situation, you can set reminders or automatic payments. Don’t let this happen to you because it will sabotage your reconstruction efforts. You will get an increase in your annual percentage rate, and if it is late enough, it will be reported to the agencies, and this will lower your rating.
Annual fee: It is $ 35. Unfortunately, this is a $ 6 increase. But we will let this happen since there is no credit check.
Foreign transaction rates: It is 3 percent, which is within the normal range.
Other charges you need to know: The inactive account fee is $ 10 per month, after 12 months of inactivity. So, if you are not going to use your card anymore, pay the balance and take steps to close it and recover your security deposit.
Security deposit: A minimum of $ 200 and a maximum of $ 3,000, depends on approval. This used to go up to $ 5,000, but we don’t recommend making such a large security deposit anyway. You don’t earn interest on the deposit, so don’t put more in the account than you need.
Credit limit: Your credit limit is based on your security deposit. If your deposit is $ 500, the limit will be $ 500. The annual fee will be charged to your account, so your initial available credit will be equal to your deposit minus the $ 35 fee.
Credit limit increases: You can call and request a credit limit increase. If approved, you will be instructed to send an additional deposit. The website says it would have to pay a fee for the limit increase. It doesn’t express how much the surcharge is, but it used to be $ 25, you can use that as a guide.
Guide to customers about credit cards
Find out about credit cards and loans
Do you need to borrow money? Both credit and loans are ways to borrow money. Some types of loans are safer than others. Find out about credit cards, payday loans and the best ways to borrow money. Learn about credit cards and loans
What is a credit card?
You can use a credit card to make payments instead of using cash. To pay in a store you put a small plastic card in a machine. You can enter or say the card number and password by phone or online.
Credit cards are simple and safe to use to make purchases and pay bills. But they carry risks. If you do not pay off your credit card every month, you will have to pay interest. Interest is the amount you pay for borrowing. The longer it takes to pay, the more interest you owe. Many people in the United States have large debts due to credit cards. Check this article for more information.
Benefits of Credit history
You may not want to use a credit card due to the risk of borrowing. But it can be useful for another reason: to start your credit history. Your credit history is a record of the money you have borrowed and where there is information on how well it has been paid. A good credit history helps strengthen your credit. If you reinforce your credit, you can borrow money when you need it for important things like buying a car or a house.
Therefore you need a credit card to reinforce your credit history. But credit card companies will not grant you a credit card unless you already have good credit!
How to have a credit history without a credit card?
You can start with a secured credit card. Stilt offers guaranteed credit cards to immigrants and others who have difficulty generating credit. Guaranteed credit cards do not involve genuine credit because you have already contributed the money, or someone has promised to pay for you. However, they allow you to form good credit. Also, banks and credit card companies have secured credit cards. Stilt has lower interest rates and a simpler application process than other companies. This is how credit cooperatives also work.
How to join a credit union?
Credit unions are like banks, but they try to help people achieve their goals. All account holders are the common owners of the credit union. Credit unions offer their help through the loan of money or the granting of credit cards to people with low incomes and no credit history. They will also help you save money. Find a credit union nearby.
What are Personal Loans?
There are several different types of loans that you can get. Some are for short-term emergencies, while others are for a long time for long-term situations, such as buying a home.
What are Payday Loans?
These loans are for those who need cash quickly. Money is requested from a lender and amortized on the day the salary is received. However, payday loans often cause more serious monetary problems than those with which you start. Obtaining this type of loan means that you already have less money to hold until your next check. In addition, payday lenders apply a very high interest. This way, you return much more than what is requested. And if you don’t pay on time, you will have to pay even more interest.
What are Alternative Payday Loans (PAL)?
Credit unions can provide you with a better option for emergency situations than a payday loan: an alternative loan (PAL). A PAL is a short-term loan, so you don’t have to apply for a payday loan. You can ask for up to $ 1,000, and you will not be charged as much interest. Before you can get a PAL, you have to be a member of the credit union for a month before.
What are Mortgages Loans?
Mortgages are loans to buy a house. You have to make a considerable payment every month. But sometimes that amount is nothing more than the payment of rent, and in the end, you will have your own home! It can be difficult to get mortgages. But your credit union can help you. Read about mortgages for non-US citizens. The Federal Housing Administration teaches you about different loans and can teach you how to save money on your new home.
What are Commercial Loans?
Several programs in the United States help refugees and immigrants start their own businesses. They offer loans and other types of support, such as business advice and financial workshops. These are some examples:
Sacramento, CA: Opening Doors
New Hampshire: NH New Americans Loan Fund
New York City: Business Center for New Americans
Washington DC and Baltimore: Latino Economic Development Center
Atlanta, Georgia: On the Rise Financial Center
What CDFIs stand for?
Community development financial institutions (CDFIs) are like credit unions. They do not intend to take advantage of their services. Instead, they want to help people reach their goals. CDFIs lend money to small businesses, new businesses and for the construction of affordable housing.