What Is The Best Secured Credit Card?

Knowing the best secured credit card is helpful when deciding to apply for a new credit card. Even people with poor or bad credit may find credit card offers out there that will meet their needs. The trick is in finding the best secured credit card with the features and terms that you can live with.

Not all secured credit card offers are the same. This is a benefit to you if you have bad credit because, depending on the reason for your credit situation (i.e. temporary unemployment, medical bills, etc.) your ability to demonstrate personal responsibility goes a long way in improving the options available to you. There are a few things however that you should always look for when searching for the best card offer.

Cards with a Low APR

One feature that makes one card better than another is the amount of interest it charges on credit balances. This is the annual percentage rate or APR. The APR is based on the fees, charges and interest rate stated for the card. The lower the APR, the lower the cost to you.

As you compare offers, look for a secured credit card with as low an APR as possible. You should also look for a card that does not charge a different APR for cash withdrawals from ATMs, which is the case with many unsecured cards. The fees can also add up and increase the APR so look for a card that keeps the various charges and fees to a minimum.

Finally, the best unsecured card should offer a decent APR that is continuous through the life of the card (and may even go lower as a reward for responsible credit card use) and is not some low teaser rate like 0 percent APR that increases dramatically after 6 months to 1 year.

Cards with Low Fees

The best secured credit cards do not hit you with both annual card fees and a monthly maintenance fee on top, as well as a transaction cost and higher charge for ATM usage. The lower the fees, the better the card offer that you are receiving. Look for those issuing companies that charge reasonable fees and compare several offers to ensure that you are receiving a fair offer.

Cards That Help Build Credit

Those secured credit cards that report periodically to the three major credit-reporting agencies are the best cards to have. What the issuer is doing for you is helping to increase your credit score by reporting positive payment history. The longer you keep the care and are responsible with paying your balances every month, the better your will become. This is very important if you are looking to reestablish a good credit history.

Cards That Become Unsecured Credit Cards

A secured credit card that has terms which allows you to convert to an unsecured credit card is one of the best offers available. With these types of cards, you are rewarded for reestablishing your credit after a period of a year or 2. This type of secured credit card will hold a deposit amount in an account under your name and return the collateral amount to you at the end of the period once you have proven your capability to use credit properly.

There are certainly other factors that makes certain secured credit cards the best. It is a good ideal before accepting any offer for a card to check around and see what other terms may be available. It is through this comparison shopping that you will uncover the best deal and the best terms for you and your situation.

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