Secured Credit Cards
Buying Guide: What Secured Credit Card Features Matter and Why?
Table of Contents
Credit LimitSecurity Deposit
Rates and Fees
Penalty Fees
Benefits
Balance Transfers
Application
What is the Difference Between a Secured Credit Card and a Prepaid Card?
Credit Limit
Best in Class:
Credit Limit
Capital One® Secured MasterCard®
Platinum Zero® Secured Visa® from Applied Bank
Secured Visa® from Merrick Bank
Credit Limit focuses on the amount of credit that is available for the cardholder using a secured credit card. Some of the more important features relating to Credit Limit are being able to increase the credit line on a card due to good payment history or an additional security deposit. In terms of Credit Limit, the minimum and maximum credit lines are something that any cardholder will need to know. Credit Limit is a significant category for secured credit cards because it touches on the exact reason people need secured credits cards, which is to establish good credit.
Fund Account Online
You can fund your account online.
Increase Credit Limit with Additional Security Deposit
You can increase your credit limit by depositing more money.
Increase Credit Limit with Good Payment History
You can earn credit limit increases based on your credit and payment history.
No Approval Required for Credit Limit Increase
You do not need additional approval for credit limit increases.
Security Deposit
Best in Class:
Security Deposit
First Progress Platinum Select MasterCard® Secured Credit Card
Capital One® Secured MasterCard®
Secured Visa® from Merrick Bank
Security Deposit has to do with the preliminary requirements for obtaining a secured credit card. All of the best secured credit cards will require a minimum security deposit that is fully refundable and FDIC-insured. It's important to be sure that the security deposit is affordable when selecting from a secured or "bad credit card." Some of the best secured credit cards will offer security deposit options that are less than $200.
Deposit Earns Interest
You can earn interest on your security deposit.
Deposit Fully Refundable
The security deposit is fully refundable.
Funds FDIC Insured
The security deposit is FDIC-insured.
No Minimum Deposit
The credit card does not require a minimum security deposit.
Rates and Fees
Best in Class:
Rates and FeesPlatinum Zero® Secured Visa® from Applied Bank
First Progress Platinum Prestige MasterCard® Secured Card
First Progress Platinum Select MasterCard® Secured Credit Card
Rates and Fees refers to the interest rates and costs associated with owning a secured credit card. Rates and Fees highlights introductory and standard rates, the cost of annual membership, and whether the secured credit card charges foreign currency transaction fees. In general, secured credit cards will charge an annual fee and a cash advance fee, but in some cases, cards will not charge a foreign transaction fee. For those who plan on carrying a balance on the card, looking for a lower APR will be a key selling point.
No Annual Fee
The credit card does not have an annual fee.
Annual Fee Less Than $35
The credit card's annual fee is less than $35.
Annual Fee Less Than $45
The credit card's annual fee is less than $45.
Annual Fee Less Than $55
The credit card's annual fee is less than $55.
No Cash Advance Fee
The credit card does not have a cash advance fee.
No Foreign Currency Transaction Fee
The credit card does not have a foreign currency transaction fee.
No Set-up Fee
The credit card does not have a set-up fee.
Penalty Fees
Best in Class:
Penalty FeesCapital One® Secured MasterCard®
First Progress Platinum Select MasterCard® Secured Credit Card
First Progress Platinum Elite MasterCard® Secured Card
Penalty Fees examines the changes in interest rate and any additional fees assigned to a delinquent account. It's common for an secured credit card to apply a late fee and a fee for a returned payment. Most of the best secured credit cards won't charge an over-limit fee. The Penalty Fees category outlines these penalty requirements and allows cardholders to be better informed about some of the consequences of a late payment.
Grace Period
The credit card has a grace period before interest starts to accrue.
No Late Payment Fee
The credit card does not have a late payment fee.
No Minimum Interest Charge
The credit card does not have a minimum interest charge.
No Over-Limit Fee
The credit card does not have an over-credit-limit fee.
No Returned Payment Fee
The credit card does not have a returned payment fee.
Benefits
Best in Class:
BenefitsCapital One® Secured MasterCard®
Secured Visa® from Merrick Bank
First Progress Platinum Select MasterCard® Secured Credit Card
Benefits is focused on the extra things provided by a secured credit card that may be of interest to the cardholder. Secured credit cards offer different benefits than regular credit cards because the benefits are more focused on credit monitoring and automatic credit reporting as opposed to insurance. The benefits for the best secured credit cards are not overwhelming, however, having a card that automatically reports and monitors credit, while also providing fraud liability can be of great help to the cardholder.
Automatic Credit Reporting
The credit card will automatically report your credit standing to the three major credit bureaus.
Free Credit Monitoring
The credit card offers free credit monitoring services.
Fraud Liability
The credit card offers fraud liability protection.
Online Account Access
You can access your account 24/7 online.
Balance Transfers
Best in Class:
Balance TransfersCapital One® Secured MasterCard®
First Progress Platinum Select MasterCard® Secured Credit Card
Secured Visa® from Merrick Bank
Balance Transfers discusses features associated with transferring existing balances onto a secured credit card. Balance Transfers will include information regarding the standard transfer rate, as well as any introductory offers. The majority of secured credit cards don't allow any balance transfers, which makes this category less important for secured credit cards. However, having the ability to transfer a balance is a nice additional feature.
No Balance Transfer Fee
The credit card does not have a balance transfer fee.
Transfer from Credit Cards
You can transfer a balance from another credit card.
Transfer from Loans
You can transfer a balance from a loan to the credit card.
Application
Best in Class:
ApplicationSecured Visa® from Merrick Bank
Capital One® Secured MasterCard®
First Progress Platinum Select MasterCard® Secured Credit Card
Application refers to the different ways to apply for the secured credit card, and whether instant approval is available. Having the ability to apply online is the most important option, but in certain circumstances, it might be convenient to apply on the phone or in person. Instant approval is a feature offered by most credit cards, but it is often dependent upon creditworthiness.
Apply By Phone
You can complete the credit card application process over the phone.
Apply In Person
You can apply for the credit card live in person.
Apply Online
You can complete the entire credit card application process online.
Instant Approval
The card offers instant approval for the credit card.
