topic Re: Best secured credit card? in Credit Cards

Best secured credit card?

Anonymous — Fri, 24 Aug 2012 00:33:24 GMT

Hi everybody, new to myfico. I am hopping that this community could help me out in choosing the best secured credit card. I know that secured credit cards can cost an arm and a leg, but my credit score is so insufficient, I couldn't even get a walmart credit card. I was trying to choose between the capital one secured credit card and the applied bank secured credit card. Does anyone here have any experience with them and know which is better? Im open to other cards as well. Also is their a way I could work my score up without a secure credit card? Thanks in advance

Re: Best secured credit card?

CreditPacMan — Fri, 24 Aug 2012 01:07:45 GMT

Have you thought about the Bank of America secured card?

I think it's the best in the secured CC's market for now.

Re: Best secured credit card?

Revelate — Fri, 24 Aug 2012 03:52:34 GMT

Secured credit cards are pretty much a requirement for a non-student... there's a few unsecured lenders which charge massive fees which personaly I'd avoid.

BOFA is definitely worth a look if you can get it: their secured card now has their 1-2-3 rewards package which is absolutely the best in this strata of card.

Cap One is another good app too.

You want at least 2, and perhaps 3 (anecdotally people have had better results by three), but 1 is absolutely too few. A third card is basically anything you can qualify for, but six months positive history on a pair of credit cards opens up some better options too than a secured (like an Amex Zync among others).

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 03:57:00 GMT

From the countless searches I've done on this site, the besti secured card is Capital One.

Three Reasons:

No Monthly Fee

Reports to all 3 bureaus - (and does not report as a secured card)

For a $49 deposit, you get a $200 CL

Bank of America (BofA) - reports as a secured card as of this year.

The Cap1 card CL can be increased 1:1 on your deposit... give them $300 and your 200 CL will be a 500 CL.

BofA is rumoured to graduate to a non-secured card after 12-18 months.

I would stay away from Citibank because I haven't read anything compelling about their secured card.

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 04:16:11 GMT

Careful, both BofA and partially secured Cap One cards are NOT GUARANTEED APPROVAL. In fact, with BofA , there are lots of denials.

OP, do you have negatives on your credit report or basically just a blank file/thin file?

Here are some guaranteed approval cards that aren't a total ripoff:

firstprogress.com: not too high annual fee and no outrageous terms like no grace period

SDFCU (need to double check this one but pretty sure it is guaranteed with deposit): No annual fee, get interest on security deposit, up to 100k secured card available.

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 04:25:39 GMT

I rebuilt with 3 secured credit cards, but I had 5 large chargeoff on my report. I ythink it is overkill for most.

If you are starting new, I think 1 secured card is enough to start and I would recommend large deposit, or build it up over time. If you are in a hurry and have a lot of cash to deposit you can go to second secured card. But if you let the secured card report for 6 months or longer, you can start getting unsecured store cards or other major cards.

On the other hand, if you have some bad credit history, definitely get 2 secured cards, maybe 3.

Capital One is a good secured card,

It is relatively easy to qualify.

Easy to build up deposit over time.

It includes credit step so you might get extra unsecured limit at 6 months.

It will help get a much better unsecured card from them later.

Annual Fee is low.

Most of the other major bank secured cards are good, but are generally for limited or new credit, check them out if that's you.

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 04:29:25 GMT

2-3 cards will build up FICO score faster. However higher CL on card will help.

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 09:40:32 GMT

I checked my credit report and it says I have one bad mark against me. I broke a lease on an apartment building and they put a 9k mark on my credit last year. Would I still be able to work up my score with this bad mark? Would it even be worth it?

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 09:41:04 GMT

Also is their a place that I can check my score for free?

Re: Best secured credit card?

Revelate — Fri, 24 Aug 2012 12:57:12 GMT

@Anonymous wrote:
I checked my credit report and it says I have one bad mark against me. I broke a lease on an apartment building and they put a 9k mark on my credit last year. Would I still be able to work up my score with this bad mark? Would it even be worth it?

It is always worth it to build your FICO score up .

Yes you can still make improvements, get the secured cards; though as Crashem correctly points out there are some which are more difficult than others to obtain. Worst case go with "high risk" lenders and just eat the fee structure for a year, you absolutely want to get positive history on your report.

I think OpenSky doesn't even do a credit check; I don't know anything about them but people have posted here about it.

Dapper Dan: need two credit cards anyway, secured reporting doesn't matter too much, and BOFA in this case graduates anyway and will grow long-term with an individual. FICO building isn't a short-term endeavour; however, it's a good point that if you don't have much money for the security deposit or AF, it's pretty much impossible to beat C1's offering. I hadn't looked at it that way previously, thank you for making it.

Re: Best secured credit card?

Anonymous — Fri, 24 Aug 2012 13:03:19 GMT

@Anonymous wrote:
Also is their a place that I can check my score for free?

Lots of places offering credit scores and some for free. However only fico score is relevant so learn the difference. Others are considered fake scores or fakos. They can vary in accuracy from person to person. Remember also there are three bureaus andexact has a fico score. In any case, free fako at creditkarma.com (tu), creditsesame.com (ex). In terms of real credit scores, you can buy them here. Also following get free fico scores. Walmart card holders get free monthly fico 08 score off tu report. Dcu provides free eq fico04 score monthly to members. Psecu gives free ex fico04 score to members.

Re: Best secured credit card?

HiLine — Sun, 21 Oct 2012 17:33:36 GMT

@altayar wrote:
Have you thought about the Bank of America secured card?
I think it's the best in the secured CC's market for now.

Second this. Not only does BofA report to all credit bureaus, the secured card also gives you the same rewards and benefits as the unsecured BankAmericard, including cash back rewards, extended warranty and car rental insurance.

Re: Best secured credit card?

cashnocredit — Sun, 21 Oct 2012 17:52:37 GMT

I'm a fan of Cit secured. While it uses a secured CD as collateral, it almost always graduates when the CD matures at 18 months.

The Citi secured is the only reason my CLs are as high as they are with a short file as it graduated and I then PCed to a World MC.

Re: Best secured credit card?

HiLine — Sun, 21 Oct 2012 17:54:50 GMT

@cashnocredit wrote:
I'm a fan of Cit secured. While it uses a secured CD as collateral, it almost always graduates when the CD matures at 18 months.

The Citi secured is the only reason my CLs are as high as they are with a short file as it graduated and I then PCed to a World MC.

Out of curiosity, does the Citi secured card give you regular credit card benefits? Inquiring minds want to know.

Re: Best secured credit card?

cashnocredit — Sun, 21 Oct 2012 19:41:22 GMT

@HiLine wrote:
@cashnocredit wrote:
I'm a fan of Cit secured. While it uses a secured CD as collateral, it almost always graduates when the CD matures at 18 months.

The Citi secured is the only reason my CLs are as high as they are with a short file as it graduated and I then PCed to a World MC.

Out of curiosity, does the Citi secured card give you regular credit card benefits? Inquiring minds want to know.

The regular MC benefits like auto ins and such. However, the AF is $29. The main thing I liked about it was the "virtual CC" capability. You can create multiple vitual CCs and set the exp date as well as the total amount that can be charged to that CC number. All virtual CCs may only be used by one merchant (the first one that uses it) which cuts down on phone order and internet fraud. I've even used it for overseas orders at small shops that you have to buy through email. I'd never send a non virtual over email.

Main bennie is that they almost always unsecure if your payment history with them is good.

Citi secured also has a watered down "thank you points" but I find them close to useless.

Re: Best secured credit card?

Anonymous — Sun, 21 Oct 2012 20:41:46 GMT

@HiLine wrote:
@altayar wrote:
Have you thought about the Bank of America secured card?
I think it's the best in the secured CC's market for now.

Second this. Not only does BofA report to all credit bureaus, the secured card also gives you the same rewards and benefits as the unsecured BankAmericard, including cash back rewards, extended warranty and car rental insurance.

Curious where you found this info. I don't see this on the page to apply. Can you show please?

Re: Best secured credit card?

dude11 — Sun, 21 Oct 2012 21:22:20 GMT

@Anonymous wrote:
@HiLine wrote:
@altayar wrote:
Have you thought about the Bank of America secured card?
I think it's the best in the secured CC's market for now.

Second this. Not only does BofA report to all credit bureaus, the secured card also gives you the same rewards and benefits as the unsecured BankAmericard, including cash back rewards, extended warranty and car rental insurance.
Curious where you found this info. I don't see this on the page to apply. Can you show please?

You can't apply for the secured rewards directly. However you can apply for the Bofa secured card and after being approved you can call them and they can convert the card or add the rewards to it. The card will still remain secured however.

I actually did this a few months ago. Now if I'm not mistaken and someone please correct me if I am wrong but, I believe if you apply for the rewards card and are not approved you may be countered offered for the same card but the secured version. This I am not 100% sure though.

Re: Best secured credit card?

HiLine — Sun, 21 Oct 2012 22:04:41 GMT

@Anonymous wrote:
@HiLine wrote:
@altayar wrote:
Have you thought about the Bank of America secured card?
I think it's the best in the secured CC's market for now.

Second this. Not only does BofA report to all credit bureaus, the secured card also gives you the same rewards and benefits as the unsecured BankAmericard, including cash back rewards, extended warranty and car rental insurance.
Curious where you found this info. I don't see this on the page to apply. Can you show please?

I applied for this card through a personal banker, who informed me of the cash back rewards and the credit reporting parts. For the other benefits, I wasn't told up front, but later figured out through www.benefitinformationcenter.com. I was going to show the BofA link to the BankAmericacard but I noticed the picture doesn't match my card; mine has the word 'Rewards' on it. If I find a link to the rewards secured card I'll let you know. Others can chime in on this as well.

Re: Best secured credit card?

HiLine — Sun, 21 Oct 2012 22:07:30 GMT

@cashnocredit wrote:
@HiLine wrote:
@cashnocredit wrote:
I'm a fan of Cit secured. While it uses a secured CD as collateral, it almost always graduates when the CD matures at 18 months.

The Citi secured is the only reason my CLs are as high as they are with a short file as it graduated and I then PCed to a World MC.

Out of curiosity, does the Citi secured card give you regular credit card benefits? Inquiring minds want to know.
The regular MC benefits like auto ins and such. However, the AF is $29. The main thing I liked about it was the "virtual CC" capability. You can create multiple vitual CCs and set the exp date as well as the total amount that can be charged to that CC number. All virtual CCs may only be used by one merchant (the first one that uses it) which cuts down on phone order and internet fraud. I've even used it for overseas orders at small shops that you have to buy through email. I'd never send a non virtual over email.
Main bennie is that they almost always unsecure if your payment history with them is good.

Citi secured also has a watered down "thank you points" but I find them close to useless.

The virtual CC sounds like a great feature, even though with the current level of protection provided by banks and credit card companies I don't know if it would be as useful. I can see myself using it for overseas transactions though.

Re: Best secured credit card?

HiLine — Sun, 21 Oct 2012 22:12:02 GMT

Or for charity donations and membership dues and such