If your credit is less than perfect, but you want to rebuild your score while having the convenience of a charge card, a ‘Secured’ card may be exactly what you need.
What is a secured card? It works exactly like a credit card, except the issuer requires you to submit a deposit (usually equal to your credit limit) as collateral in the event a payment isn’t made. You still have the flexibility of making purchases with the card, and paying off the balance monthly so you can rebuild your credit. Additionally, once you’ve improved your credit, you can be issued a new card without the deposit! And the best part is most of these cards also allow you to accrue points on your purchases to be used as cash-back or on things like travel!
Heres a quick list of the current top-rated Secured cards available:
- Chime Credit-Builder Visa
- Discover it Secured Credit Card
- Capital One Quicksilver Secured
- OpenSky Secured Visa