Best Secured Credit Cards


Hey I’m Adam Jusko from ProudMoney.com and in this video I want to talk about the best secured credit cards
on the market today. Before I do that, I would ask you to please subscribe to our
YouTube channel if you haven’t already and if you have I thank you. So we’re
going to talk about the best five secured credit cards. If you don’t know
completely what a secured credit card is, it’s a way to build credit. If you have
bad credit or if you don’t have a credit history and you want to build your
credit, secured credit cards are a way to do it. They are different from regular
unsecured credit cards which is probably what you think of when you think of a
credit card. You use these specifically to build credit and the way that works is
you actually have to put a security deposit down in order to get the credit
card. Now the security deposit is refunded when you no longer want the
credit card or when you no longer need the credit card or maybe if you get
upgraded to a better credit card you might get that back. But no matter what,
you’re putting a deposit down. But this is not a fee, it is a basically a safety
for the bank. If you don’t pay your bills, they’ll grab that security
deposit but otherwise it just sits there sort of as collateral and you get it
back when you no longer need the card anymore. Now, when you get a credit card
that is a secured credit card, you put that security deposit down
but you have to realize that every month you are paying just like a regular
credit card. You use it just like a regular credit card… you make
your purchases, you’re gonna get a bill at the end of the month, you have to pay
it, and if you don’t pay the full balance you’re gonna get charged interest — all
the ways that a regular credit card work are the same for a secured credit card. That security deposit is completely just there as a safety for the bank if
eventually you don’t pay, but your goal is to build your credit, so you are going
to pay and you’re gonna pay on time right? That’s the whole reason that we’re
talking about them and it’s probably the whole reason that you are interested in
this video in the first place. So let’s go talk about what those five best are.
Now I am sticking with the for the most part the major credit card issuers as
far as secured credit cards — number one, because most of them have the best terms, but, number two, a lot of these cards are going to use that secured card
as potentially a way for you to build a relationship with them. And since your
ultimate goal probably is to get some of the more popular credit
cards on the market, it makes sense for you to try to establish a relationship
with some of the banks that are probably going to be issuing those cards that
you’re going to want in the future. So, some of these cards will actually charge that security deposit up front but in the future they may take
away or send you back that security deposit and let you keep using the card,
and that’s eventually the goal — to get that deposit back and either
keep the card or move on to something better. So here are our top five. The
number one is the First National Bank of Omaha secured credit card, which maybe is not something that is familiar to you. But this is actually a fairly large bank
that does a lot of credit card issuing and they actually have what we consider
to be the best secured credit card on the market. There’s no extra annual fee
for this card, which some cards do charge, the interest rate is 19.24% as of this video being made, which doesn’t sound great but in the
secured card market for people with bad credit or who are building
credit that is not a bad interest rate to start with. And the big selling point
here is that you may get your deposit back in as little as eleven months if
you continue to make your credit card payments on time with this card. It’s not
a guarantee, but if you continue to make your payments on time, you could get that
deposit back and then you could go on and continue to use this card in an
unsecured fashion instead of having that security deposit there anymore and
you’ll have that back in your pocket. Number two is the Discover It secured
card. This is another card that has no annual fee, so you have to put your
deposit down but you don’t have to pay any extra for the card on top of that. It
has an interest rate as of now at a much higher place than the last card. This is
at a 24.49%, which is not an interest rate we
particularly like. However, this card has two other selling points that we do like. And one of them is it offers rewards, which is very rare
for a secured credit card. You get 2% cash back on your gas and restaurant
purchases, 1% cash back everywhere else. And this is another card that offers you
a potential upgrade if you make your credit card payments on time. They don’t
sort of give you a specific idea of when that upgrade may happen, but over time
they’re going to look at your account and decide if maybe they want
to send you that security deposit back and let you continue to use that card. For most of these cards you have to figure it’s going to be at the very
least six months before they would consider that. In most cases it’s going
to be closer to a year before there’s a possibility of them sending you your
deposit back. If you’ve had a different experience, someone with a secured card, I would love to hear that as well. But that is generally how it works. So, number
three is the Capital One secured card. This is another card that has no annual
fee, which is good. It has a high interest rate as well, at 24.99%, so that’s not so great. But the third point is, after five billing
cycles of having this card, assuming that you pay your
bills on time and everything and you’re sort of showing that you are responsible
to Capital One, they will consider actually increasing your credit line
without requiring a further deposit from you. Initially with Capital One you’re
probably going to put down $200, you’re gonna get a 200 dollar credit line, but
if you continue to make your payments, they may increase that so, you
know, you may go up to $500 or whatever but without putting a further security
deposit down. The only thing about Capital One that does not make
them quite as desirable is they don’t have any language that really suggests
that after a certain point they will send your deposit back and then let you use the card in an unsecured fashion, so that is very unclear. They are
not, you know, sort of pushing that in their marketing. So you might get that
better credit line down the line, but you’re not necessarily going to be
upgraded to the unsecured card. Number 4, the Bank of America secured card. This one actually does have a $39 annual fee that is
in no way related to the security deposit you make — you’re just gonna pay
that annual fee and that doesn’t come back to you. The yearly
interest rate is 21.74% — not great but not terrible
for a secured credit card. This one, again, a major bank that is telling you that
they will consider you for an upgrade down the line, will consider giving you your security deposit back and letting you continue to use the card. So again this is another way for you to potentially build a relationship with a
major bank so that you can either keep this card, you know, if they do that or
you can even hopefully down the line get yourself to a place where you
have a little bit of a relationship with them and maybe you qualify for even a
better card. And then the last card is the US Bank Secured Card. This card would be higher on our list if they offered any sort of language talking about
upgrading you in the future, because the actual terms and conditions aren’t so
terrible. It does have a $29 annual fee, but it only has an interest rate of 21.49% as of the making of this video, so it’s a little
better in the interest rate area than some of these other cards. But again
doesn’t tell you anything about whether there’s a possibility of an upgrade.
However, establishing a relationship with US bank, another major
credit card issuer, is not a bad thing to do. So, overall, secured credit cards are a
very good way for you to potentially improve your credit history and improve
your credit score — they’re actually probably our favorite way to do it
if you have bad credit or you’re building credit. And these are all
good cards to consider to go down that path. Going with the major banks makes
good sense so you can build those relationships and hopefully move on to
bigger and better things in the future. So, thanks for watching. Please go to
ProudMoney.com, where I will actually leave the link from ProudMoney.com
to these cards if you want to go directly to their pages. And then you can
check out the rest of the site for other “best of” personal finance lists
and credit card reviews and all kinds of other good stuff too. Thanks for watching. Bye.

10 comments on “Best Secured Credit Cards”

  1. Adam D Brown says:

    Citi?

  2. Jose Talks says:

    Great video and explanation thank you. Now do they check for employment or other things in obtaining a secured card? Thinking of getting one for my wife to build her credit up

  3. Jose Talks says:

    Also do all these cards you mentioned do they report to all 3 bureaus?

  4. The Matrix says:

    The FNBO doesn’t issue card to people outside of Nebraska wtf.

  5. jake super says:

    What do you think of Pnc secure card?

  6. Chris Trowelll says:

    Can you add more money to your secured card whenever you want? Like if you start with 300 dollar limit in month June can you add 300 more dollars to you limit after you started?

  7. Demarcus Tanker Boy TV says:

    How much should you put down on an open sky secured card? And does the amount affect your credit score fast…

  8. The Aceman Santana says:

    Do they check on your credit and what kind of score you should have if they do..?

  9. Messiah38 says:

    You don’t pay unless it’s F.P.

  10. ProudMoney - Credit Cards & Personal Finance says:

    You can support our channel by choosing your next credit card via one of the links below (in other words, we make money if you get approved): [Click "Read More" for Advertiser Disclosure]

    – CardMatch™: https://rebrand.ly/p70ubk
    – Credit Cards for Bad Credit: https://rebrand.ly/32q7tj
    – Credit Cards for Fair Credit: https://rebrand.ly/956h4w
    – Cash Back Credit Cards: https://rebrand.ly/8tz84x
    – Credit Cards For Good Credit: https://rebrand.ly/yi47oz
    – Secured Credit Cards: https://rebrand.ly/2is7m1

    ADVERTISER DISCLOSURE: Unless otherwise noted, this channel receives compensation from our partner sites when you click through and are approved for a credit card through the links you see above. Compensation may impact how and where we place these links. While we try to include information on a wide variety of financial companies and products in our videos, we definitely can't guarantee that we've included every company or every available offer.

    NOTE: Credit card information in this video is not guaranteed; we have attempted to confirm all information to the best of our ability but we could simply be wrong or the information could be outdated by the time you watch this video. We are doing our best here, but check our work!

Leave a Reply

Your email address will not be published. Required fields are marked *