Secured Credit Card
Secured credit cards are the most common type of credit cards. They are secured by collateral. That means that like secured loans, such as mortgages or auto loans, secured credit cards are directly connected to property that a lender can seize of the cardholder fails to pay. Issuers of secured cards must make use of other means — such as the courts or garnishment — to collect unpaid debts. Customers qualify for secured cards based on their credit history, their financial strength and their earnings potential.
Types of Secured Credit Cards:
1.Capital One® Secured MasterCard®
Unlike with most secured cards, it’s possible to get a credit limit on this card that’s higher than the security deposit you put down. You can get a limit of $200 for a $49, $99 or $200 deposit, depending on your credit.This card reports to the three major consumer credit bureaus.
2. Discover it® Secured Credit Card
The rewards would be pretty decent even if this weren’t a secured credit card; for a secured credit card, they’re unheard of. Rewards never expire, and there’s no minimum redemption amount.There’s no penalty APR for paying late, and no late fee the first time you miss the due date.
3.OpenSky® Secured Visa® Credit Card
You can qualify for this card within minutes. The bank doesn’t run a credit check and doesn’t require a checking account, unlike other major issuers.Because the annual fee is $35, this card is a relatively affordable way to improve a severely damaged credit score.