Best Secured Credit Card for Bad Credit, No Credit, to Build Credit, and Rebuilding Credit. TOP 4, free, no fee, rewards, 2019! ------------------------
In this video I’m going to show you how to get started with the best secured credit cards for bad credit, no credit, and building credit & how to use them.
Secured cards are an important stepping stone to real credit if you currently have no credit history or bad credit, such as bankruptcies or delinquencies. After you keep a secured card open for 6-12months, you should be able to qualify for real unsecured credit cards for the first time, assuming you make 100% on-time payments and you always pay the monthly statement in full.
The basic concept for a secured card is that you will have to pay a security deposit upfront, and that will be your credit limit. They do this so if you skip town with a maxed credit card, they can just keep the security deposit to pay off the debt. But if you stick to the cards on my list here, you will always get this deposit back when your card eventually converts to an unsecured.
However, there are a lot of secured card options out there, many of which are very bad for you because they have tons of fees or they don’t have a path toward graduating or converting into a regular unsecured card. So here’s the 4 best secured cards:
- Discover It Secured Card
- Capital One Platinum Secured Card
- Citi Secured Card
- Bank of America BankAmericard Secured Card
All of them have no fees and are perfect for people with no credit history.
If you have no credit history at all, then any of these I mentioned will work for you. If you have bad credit, then just stick with Capital One and Discover. But either way, Discover stands out as the single best card because they actually have rewards and pay you to use their card & you should probably get it if you can afford the deposit & can get approved.
Here are some super important tips to get you moving in the right direction with these secured cards:
1) Don’t go open all of these cards at once. If you have bad credit, then get 2. If you have no credit, then just get one. Your goal here is to just get one of your secured cards to convert to unsecured, and by that point you will be able to qualify for as many other regular cards as you want. So just be patient and give it a couple months.
2) Always pay your statement balance in full. There’s so much mis-information out there about this, but please god always pay it in full. Never make a partial payment & never pay any interest on these cards. If you always pay in full, they will consider you for a real unsecured card faster. Anyone who tells you otherwise has no idea how credit works; so just pay it in full.
3) Set up free accounts at 2 websites: creditkarma.com and Experian. Using both of these sites together will allow you to monitor your scores and progress at all 3 of the companies that score you. They will also allow you to dispute older negative credit items online for free. So get setup at both of these, but make sure you don’t pay for them.
Good luck with the credit building! Hope this helped!
0 Comments