Contact Me
Barclaycard Arrival World MasterCard $400 BonusBarclaycard Arrival $200 BonusBest Card BonusesCardMatch Bonuses

2014′s Best Secured Credit Cards For Bad Credit Scores Here!

by Tony Phan on February 21, 2014. Updated March 20, 2014 · 11 comments

in Credit Cards For Bad Credit

If  you’ve happen to come upon this page looking for the best credit card for bad credit, there are some really good options listed below.  Whether you’ve made bad choices and developed bad credit, or you’ve recently become an adult and just haven’t had the opportunity to build your credit, there are still options out there.

*Scroll down to view all the best credit cards for bad credit below if you want to go straight to the options.

*Before going with a secured credit card meant for poor credit, see if you’re able to get approved for a good rewards credit card for Average credit, like the Barclaycard Rewards MasterCard here.

bad-credit-scores

Bad Credit Won’t Get You Rewards!

Everyone needs a credit card these days.  Not only for convenience, but to really help establish a good credit foundation.  If you’ve been looking around at all the most popular credit cards in the market, you’ve probably come to realize that they all require good to excellent credit.  After all, creditors aren’t likely to risk issuing high credit limits, rewards, miles, and bonuses to a consumer who might not be able to pay back their debt.

Rebuild With Secured Credit Cards…

If you really do have poor to fair credit, then it’s time to take steps towards rebuilding.  Fortunately, Secured Credit Cards exist for this sole purpose.

Secured credit cards are quite different from your traditional credit cards (unsecured credit cards) in many ways.

The main difference is in how your credit limit is determined.  With a traditional credit card that offers many benefits, your credit limit is determined by your credit score or credit profile.  The more credit history you have, and the better your score is, the higher your credit limit will generally be.

With secured cards, your credit limit is instead determined by a security deposit that you send in with your application.  So, let’s say you send in a security deposit of $750.  Your credit limit will then default to $750.  Since you’re securing it with your own money, the issuer has no problem with approving you for a credit card.

It’s important to point out that your security deposit with a secured card doesn’t work the same way as a prepaid card would work, where your deposit is used to pay off your spending balances.  Rather, that security deposit is simply stored away in a savings account waiting to be returned to you after you’ve closed the account in good standing.

Also, unlike prepaid cards, your secured credit card account will be reported to the major credit bureaus, which in turn CAN affect your credit in a positive way if you’re responsible.

grow your credit score

The Bad That Comes With Secured Cards…

Well, if you have bad credit, then secured cards are kind of a necessity.  You just don’t have another choice.

Even though this is the case, I should still point out all the negatives that come with carrying a secured credit card.

As I spoke about above, these cards offer no value in using them other than the fact that they can help you rebuild your credit, and I suppose having the convenience of using a credit card.  But, you’ll earn no miles, no rewards, no cash back, and no bonuses with them.

Probably the most important thing to prepare for with these secured credit cards are all the fees!  ALL of these credit cards will have higher regular interest rates and/or annual fees.  Although there are exceptions, the general rule is if the card has a higher annual fee, then the interest rate will be lower – and vice versa.  So, keep that in mind when choosing which is the best credit card for bad credit for your particular situation.

Here’s how I would go about it.  If you KNOW you are well prepared to be responsible and pay off your monthly balances on time, all the time, then I would pick a card with the lowest annual fee.  Because you’ll be paying it off in full monthly, you won’t have to worry about interest accruing.

On the other side, if you have a feeling there will be months where you’ll be carrying a balance, pick the card with the lowest regular interest rate.  The annual fee will probably be higher, but at least you won’t be penalized too much with the interest on your balance.

Browse The Features Of All The Cards Below Before Deciding:

usaa secured platinum american express

USAA Secured Platinum American Express Card

  • It’s a real credit card – not a prepaid or debit card, that helps you build or improve your credit score.
  • When you apply – you’ll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
  • Your CD is a security deposit – the money you put in upfront, from $250 to $5,000, is the card’s credit limit.
  • Earn interest on your CD – your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don’t default on your payments.
  • Start building your credit – opening a CD lets you get a credit card even if you don’t have a credit history or have bad credit.
  • Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
  • If you are not eligible, USAA credit cards and other products may still be available.
  • Regular APR: 9.90%(Variable)
  • Annual Fee: $35

*Note: this card is targeted to the military, military family, and veterans

Apply Now

usaa secured platinum mastercard

USAA Secured Platinum Card

  • It’s a real credit card – not a prepaid or debit card, that helps you build or improve your credit score.
  • When you apply – you’ll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
  • Your CD is a security deposit – the money you put in upfront, from $250 to $5,000, is the card’s credit limit.
  • Earn interest on your CD – your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don’t default on your payments.
  • Start building your credit – opening a CD lets you get a credit card even if you don’t have a credit history or have bad credit.
  • Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
  • If you are not eligible, USAA credit cards and other products may still be available.
  • Regular APR: 9.90%(Variable)
  • Annual Fee: $35

*Note: this card is targeted to the military, military family, and veterans

Apply Now

first progress platinum elite secured mastercard

First Progress Platinum Elite MasterCard® Secured Credit Card

  • Nationwide Program though not yet available in NY, IA, AR, or WI
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • 24/7 Online Access to Your Account
  • Annual Fee: $29

Apply Now

first progress platinum prestige secured mastercard

First Progress Platinum Prestige MasterCard® Secured Credit Card

  • Nationwide Program though not yet available in NY, IA, AR, or WI
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • 24/7 Online Access to Your Account
  • Annual Fee: $44

Apply Now

first progress platinum select secured mastercard

First Progress Platinum Select MasterCard® Secured Credit Card

  • Nationwide Program though not yet available in NY, IA, AR, or WI
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $300 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • 24/7 Online Access to Your Account
  • Annual Fee: $39

Apply Now

horizon gold credit card

Horizon Gold Credit Card

  • Guaranteed Approval
  • Bad Credit Accepted
  • No Employment Check
  • Reports to a Major Bureau
  • Regular APR: N/A
  • Annual Fee: $24.95 benefits plan membership will be auto-debited monthly

Apply Now

open sky secured visa

Open Sky Secured Visa® Credit Card

  • Build Your Credit with our monthly reporting to all 3 credit bureaus.
  • Control Your Finances, start with a security deposit and credit line as low as $200.
  • Apply in less than 5 minutes, No credit check necessary.
  • Avoid paying interest, no interest charged on new purchases if the balance is paid in full by the due date each month.
  • Extra Credit When You Need It, increase your credit line up to $5000 (subject to approval).
  • Easy funding options, with 4 ways to fund and No checking account needed.
  • Annual  Fee: $29

Apply Now

*Tip: Before applying for a secured credit card, take a look at the best rewards credit card for Average credit – the Barclaycard Rewards MasterCard.

About Tony Phan

I work as a full-time optometrist and spend any spare time I have on HappyDoctorBlog. I love to travel, live a healthy lifestyle, and find new ways to earn a living. Through this blog, I'd like to share my experiences. Find Me: Google+, Facebook, Twitter, Pinterest

{ 4 comments… read them below or add one }

Pay Rockin'dat Petry

more of a question here. Has anyone had experience with Barclaycard? thanks

Reply

Henderson

STAY AWAY FROM FIRST PROGRESS. They will take most of your own money you put into you account and it will take three months to get it back. Most of the time you get a wrong number when trying to reach customer service. Very scam like business operations.

Reply

Alex

Awesome breakdown here for people that are struggling with fair or poor credit. There really are a lot of options out there for the people that have no idea where and how to start establishing or rebuilding their credit profile. Remember, none of these ideas will be effective if your not prepared to live within your means. You have got to be responsible and patient if you want the finer things in life. There is no secret formula here, so go about this thing the right way and don’t allow anyone to tell you any different. Great job, thanks.

Reply

R. KEEFER

Regarding the First Progress cards:

Horrible company! BEWARE! This company doesn’t have an option of auto pay. Here is what happened to me. I went online to there site and filled out the form that looks like your writing a check. I filed out everything and clicked the “make payment” button. the screen flashes blank and everything looks good to go. A few months later I get credit score alert that my scores have dropped over 50 points! When I look at my report I see First Progress has reported my account over 30 days late! I call First Progress right away and tell them this has already been paid. They said they payment never went through. I was shocked. I said I have never been late before and I will pay everything in full right now with you on the phone. They said I had to do it online and they could take my card over the phone. It took 4 times for me in input my information before it would go through. The prior 3 times the screen would just flash like the payment went through. I wouldn’t get an error message but I check my online back to see the charge show up. each time it didn’t I would enter the info again. The 4th time it went through I finally got an email conformation. I called back and told them about the system issue and they didn’t care at all. I asked that they remove this 30 day late as their system is messed up and I did everything I could to pay this balance in full and on time and that I never been late before. They didn’t care and were more than happy to ruin my credit so they could keep me stuck paying there high interested fees. After many more calls to reason with them and remove the 30 day late which has cost my family our home loan! I have cancelled the card. I will never have a credit card that doesn’t offer auto payment options. This is one terrible company in my opinion.

Reply

I'd Love To Hear From You Below : )

{ 7 trackbacks }

Previous post:

Next post: