Credit score guides to get premium secured credit cards? Who can be approved? Even though secured credit cards are available to people with bad credit, and even though the security deposit reduces the risk to the issuer, approval is not guaranteed for everyone: The issuer will usually (but not always) check your credit report for signs that you’re an unacceptable credit risk. If you’re in the middle of a bankruptcy, for example, or you’re currently delinquent on other accounts, or you’ve opened a bunch of new accounts recently, you’re unlikely to be approved. You’ll also have to show that you have income so you can pay your credit card bill. Yes, the issuer has your deposit, but it will use that money to cover your bill only as a last resort. You’re expected to pay your bill every month, so you’ll need income.
Applicants do not have to have a credit history, and Capital Bank will not run a credit check. As with most secured credit cards, your credit limit is determined by the amount you deposit, between $200 and $3,000. We like that the annual percentage rate for purchases isn’t as bruising as with some secured cards. You’ll pay 17.39% variable APR, which is higher than standard credit card interest rates, but lower than the 20% APR or higher you’ll find on other cards. You don’t need a bank account to apply. The APR is relatively low compared with other secured credit cards. 17.39% variable APR.
First Progress checks your credit when you apply for one of its secured cards, but it’s not a “hard” inquiry, meaning it doesn’t affect your credit score. The First Progress Platinum Elite Mastercard® Secured Credit Card gets the nod here as the lowest-cost First Progress card. Getting a secured card without a hard inquiry on your credit report can be a benefit to those with lower credit scores, when every point counts. The interest rate on this card is decent for a secured card, though it’s best to pay your balance in full every month, especially when building credit. The annual fee of $29 isn’t terrible — but there are good secured cards available with no annual fee at all.
Provided you make on-time payments with a secured card, your security deposit remains untouched and is remitted back to you should you ever close the account. Some issuers even pay you interest on the deposited funds. In time, given a positive record of making payments, issuers may grant you a credit limit that exceeds the security deposit. Eventually, the issuer may also offer you the option to upgrade to a regular—that is, unsecured—credit card. In many cases, that allows the account to remain open, and its increasing age to be an asset to your credit record, which generally rewards having older accounts. If that option isn’t available, though, one can simply close the secured account and apply for an unsecured card once you’ve attained a solid credit score. The free score-monitoring feature offered by most secured cards allows you to track your progress.
The extra security for the lender means they are more comfortable offering credit lines to borrowers without a credit check, as they already have the means to clear the balance if necessary. For borrowers, secured cards are beneficial as they offer access to a credit card without a credit check of any kind; ideal if you have bad or no credit. Ultimately, secured cards are the best way of obtaining a credit card and building a decent credit history if you do not pass credit checks for standard cards. Below, we’ll delve into the best-secured credit cards– so you can peruse the options, and make the decision that makes the most sense for you and your financial history. So, let’s dive right on in… Find additional information on no credit checks.