A secured credit is the best way to build your credit. You must make a deposit before you can make any monthly payments. Ideal situation is to pay off the balance completely each month. The deposits that you make can be refunded once the account is closed. The card can be used for many years before you must start paying the balance.
Capital One Platinum Secured credit card
The Capital One Platinum Secured Card Credit Card is a great option to establish credit history, especially if you have struggled with payments in the past. The minimum deposit required to open the Capital One Platinum Secured Credit Card is $49, $99, or up to $200. Capital One will let your make installments over time, and you will receive your card after you've paid the deposit. The credit limit for this card is $1,000. It's definitely worth looking into.
Capital One Platinum Secured cards have a $200 credit limit at the beginning. It's easy to increase this limit with additional deposits of up to $800. You can apply for a higher credit limit by increasing your initial deposit after six months. In fact, you can get a credit limit increase of up to $1,000 after just six months. This is a great opportunity to build your credit and improve your score. Be sure to make your payments on-time.
Discover it Secured
If you are looking to build credit, the Discover it Secured card is a great choice. This card is free of any annual fees and has a minimum balance. You can earn rewards while rebuilding your credit. It is especially useful for students as there is no annual fee, and you can transfer your balance to an unsecured Discover card after seven months of good payment behavior. Once you've been responsible with your card, you can graduate to a more secure card without a security deposit.
Discover it Secured creditcard also offers $0 annual fees, zero foreign transaction fees, as well as no late payment fees. The card will charge you a late payment fee, but this can be avoided if you make all your payments on time. International purchases will not incur a fee. Balance transfer fees are only three percent of the total balance transfer amount for the first six months, and they increase to five percent after this period. These fees make building credit relatively affordable.
Citi Secured Mastercard
Citi Secured MasterCard is the best secured credit card. With a security deposit between $200 and $2,500, this credit cards allows you to build your credit score and learn responsible financial techniques. You can use the card for up to one year, then upgrade to a higher limit when you are ready.
Citi Secured Mastercard also has a zero dollar annual fee. This is unheard of with most secured credit cards, which charge high annual fees while offering very few benefits and perks. Many unsecured credit card building cards also charge eye-popping fees each year, which tends to increase the cost of the card after the first. Even though this card is low in annual fees, it can still add significant amounts to your monthly bills once you use it.