As a business owner, having a credit card in your pocket is a convenient way to make purchases. You buy what you want and within minutes you’re on your way to complete your next project. Whether you’re looking for the best small business credit cards or ones available for bad credit, it’s important for you to compare their differences.
That’s why we’ve compiled a list of the best secured credit cards in 2019 for you to consider when you aren’t sure which one to get. Likewise, there are alternatives to using secured credit cards you may not have thought about.
What is a Secured Credit Card?
If you have bad credit or haven’t established a credit history, a secured credit card provides you with a limited amount of available credit. As you make monthly payments on time, you can build credit to qualify for unsecured funding. However, have in mind that a secured card implies you’ll need to make a deposit to cover part or all of the credit limit before lenders issue a card. That way, the lender has a cushion of money to fall back on should you default on payments. In that situation when you fail to repay the loan, there’s a good chance your deposit won’t be returned.
Here’s more information detailing how a secured credit card works.
Best Secured Credit Cards 2019
This comparison list of best secured credit cards will help you choose one with the features to match your business’s financial needs. Keep in mind, the information provided below is current as of this writing. Card issuers may change their terms and conditions annually or more frequently.
|Card Issuer||Annual Fee||Regular APR||Minimum Credit Score Required||Intro APR||Other Features||Link to Apply|
|Green Dot Primor Visa||$49||Fixed 9.99%||No minimum – poor rating is okay||None||No processing or application fees, no penalty rates charged, reports to 3 nationwide credit bureaus||Green Dot Link|
|First Progress Platinum Prestige MasterCard||$49||10.74% Variable||No minimum – poor rating is okay||None||Deposit is refundable when you pay off balance, 24/7 online access to account, reports to 3 major credit bureaus||First Progress|
|Discover It||None||24.99% Variable||300 – 629||10.99% on balance transfers for 6 months, cash back earnings matched at the end of your first year||Earn cash back, credit bureaus notified, automatic reviews after 8 months to transition to unsecured line of credit, alerted if social security number found on dark web sites||Discover It|
|Capital One Secured MasterCard||None||26.99% Variable||300 – 629||None||Reports to 3 major credit bureaus, you can qualify for security deposits less than credit limit, access to higher credit limit after 5 months||Capital One|
|OpenSky Secured Visa||$35||19.64% Variable||300 – 689||None||No credit check or bank account required to qualify making it attractive for individuals with severely damaged credit, reports to major credit bureaus||OpenSky|
|DCU Visa Platinum Secured||None||13.75% Variable
$500 minimum deposit
|300 – 850||None||No fees or higher rates for balance transfers and cash advances, borrow against DCU savings account, no cap on deposit amount||DCU|
|Citi Secured||None||24.24% Variable
$200 minimum deposit
|Limited history required||None||No one-time fees, auto pay and account alerts available, reports to 3 major credit bureaus, flexible payment due dates||Citi|
|Applied Bank Secured Visa||$48||Fixed 9.99%
$200 minimum deposit
|Bad credit okay, no minimum score required||None||No credit check, reports to 3 national credit bureaus, make additional deposits any time to increase credit limit||Applied Bank|
|Merrick Bank Secured Visa||$36||19.45% Variable||Poor credit okay||None||After one year you can increase line without additional security deposit, credit line up to $3,000, updated FICO score monthly, reports to 3 major credit bureaus||Merrick Bank|
|Armed Forces Bank Credit Builder||$35||23.24% Variable
$300 minimum deposit
|300 – 689||None||Credit limits between $300 – $3,000, increase credit limit in increments of $50, money in your savings account accrues interest, reports to 3 major credit bureaus, upgrade to unsecured||Armed Forces Bank|
Keep in mind…
- As you can see from the comparison table, terms and features vary widely among card issuers. Depending on those terms and features, there should be one of the best secured credit cards that seems more suitable for your business.
- However, remember: if you have trouble paying off debt, even the best secured credit card won’t help build credit if you aren’t a disciplined spender. After making purchases, it’s a good practice to pay off what you owe. Then, the interest rate is inconsequential because you never carry a balance.
- We recommend when choosing the best secured credit card that you make sure the card issuer reports to the major credit bureaus. They should report not only missed payments but when you pay on time. If they don’t, the card is simply a prepaid credit card that doesn’t build a credit rating. Secured credit cards should always help you build credit.
- Pay attention to cards with variable rates. The rates fluctuate because they’re tied into the U.S. Prime Rate which means minimum monthly payments go up or down.
Did you know there’s another way to get the funding you need without paying a deposit to secure the loan?
Other Alternatives to These Best Secured Credit Cards
If you don’t have collateral or would rather not offer your assets to secure funding, you can apply for one of our unsecured business loans. At Camino Financial we don’t require collateral or a deposit in exchange for extending credit to borrowers. That’s a relief for many small business owners who are just starting out and have few or no assets.
At Camino Financial we strive to follow our motto “No Business Let Behind”. The fact that we don’t require collateral is proof of it.
Our lending process is fast, simple and transparent: we offer fixed terms, interest, and monthly payments. There are no unpleasant surprises like rate increases, fluctuating payment amounts or additional fees. You can find out more about our loan process by reading, Why Camino Financial Doesn’t Require Collateral for Their Business Loans?