Types of Credit Cards You Should Know About

If you’re looking to build or repair your credit score, secured credit cards are among the best options. These cards can help establish a positive credit history over time, often taking several months for noticeable improvement. Here are some top secured credit cards that can help you strengthen your credit profile:

• Discover it Secured Card
  Offers 2% cashback on gas and dining up to $1,000 per quarter, plus 1% on other purchases. It’s ideal for credit building with no annual fee. After eight months, it may be upgraded to an unsecured card.
  Cons: Requires a minimum $200 deposit and has a credit limit up to $2,500. Unbanked individuals may find it limiting.

Another popular choice is the OpenSky Secured Visa. Designed for people with bad credit or without traditional bank accounts, it doesn’t require a credit check for approval. The deposit ranges from $200 to $3,000, payable via debit, wire transfer, or money order. With an 18.14% APR and a $35 annual fee, it provides an accessible way to rebuild credit.

The Capital One Secured MasterCard stands out because its deposits do not need to match your credit limit. For instance, a deposit of $49, $99, or $200 can yield a limit of corresponding amounts, with the possibility of increasing your limit after five on-time payments. The APR is 24.99%, and approval requires a checking account, savings, or rental history.

The Digital Federal Credit Union Visa Platinum Secured Card has no annual fee, no balance transfer fees, and a low APR of 12.50%. Unlike other secured cards, there’s no minimum deposit requirement, but membership in Digital Federal Credit Union is necessary. Paying bills in full each month is the best way to build credit with this card.

The Citi Secured Mastercard is another reliable option, offering no annual fee and an APR of 23.49%. Deposits start at $200, with a maximum of $2,500. Ensure no recent bankruptcy before applying.

The Wells Fargo Secured Visa caters to higher credit limits, with a minimum deposit of $300 and a maximum of $10,000. While it provides a pathway to upgrading, the high deposit may be a challenge for some. It promotes responsible credit use to facilitate unsecuring your account over time.