Introduction

Having bad credit can make it difficult to access credit cards with reasonable interest rates and favorable terms. However, that doesn't mean you are completely out of luck when it comes to finding a credit card. Secured credit cards are a great option for those with bad credit, as they require a security deposit that acts as collateral for the credit limit. This makes them less risky for lenders and can help you rebuild your credit score over time. In this blog post, we will discuss three great secured credit cards for those with bad credit.

1. Discover it Secured Credit Card

The Discover it Secured Credit Card is a popular choice among those with bad credit. It offers a minimum security deposit of $200, with a credit limit of up to $2,500. One of the standout features of this card is that it offers cash back rewards, with 2% cash back on gas and restaurant purchases and 1% cash back on all other purchases. Additionally, after eight months of responsible credit use, Discover will review your account to see if you qualify for an unsecured credit card, potentially getting your security deposit back.

Another perk of this card is its lack of an annual fee, making it a budget-friendly option for those looking to rebuild their credit. It also offers free access to your FICO credit score, allowing you to track your progress as you work towards improving your credit score. With responsible use, this card can help you rebuild your credit and earn rewards along the way.

2. Capital One Secured Mastercard

The Capital One Secured Mastercard is another popular choice for those with bad credit. It requires a security deposit of $49, $99, or $200, depending on your creditworthiness, with a credit limit of up to $1,000. This card also offers no annual fee and the opportunity to earn a higher credit limit with responsible credit use.

One unique feature of this card is the option to pre-qualify without impacting your credit score. This can be helpful for those who are unsure if they will be approved for a secured credit card. It also offers access to a higher credit line after making your first five monthly payments on time, giving you the opportunity to increase your credit limit without having to deposit more money.

3. OpenSky Secured Visa Credit Card

The OpenSky Secured Visa Credit Card is a great option for those with bad credit who may have difficulty getting approved for other secured credit cards. It requires a security deposit of at least $200, with a credit limit of up to $3,000. This card does have an annual fee of $35, but it also reports to all three major credit bureaus, helping you build credit history and improve your credit score.

One unique feature of this card is that it does not require a credit check for approval. This means that even if you have a bankruptcy or no credit history, you can still be approved for this card. However, it's important to note that this card does not offer any rewards or benefits, so it may not be the best choice for those looking to earn rewards.

Conclusion

Secured credit cards can be a great tool for those with bad credit to rebuild their credit score and gain access to credit. When choosing a secured credit card, it's important to consider the fees, credit limits, and potential rewards or benefits offered. We hope this post has helped you discover three great options for secured credit cards for bad credit. Remember to use your card responsibly and make timely payments to see the best results for your credit score. Good luck on your journey to improving your credit!