Which secured credit card should i get

Any card you graduate to will work quite differently. Chime has been the subject of multiple complaints related to the way it freezes customers' funds. Chime is a financial technology company, not a bank. Credit Builder card issued by Stride Bank, N. No credit check to apply, no annual fees or interest, and no minimum security deposit required.

No stress! Additional terms apply. Use your secured Credit Builder card everywhere VISA is accepted, including on everyday purchases, such as gas and groceries. Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card no minimum deposit required! Turn on Safer Credit Building and have your monthly balance automatically paid on time.

Increase your credit score by an average of 30 points, with regular, on-time payments. Turn on transaction notifications to receive real-time transaction alerts. See www. So-called "alternative credit cards" can also be a good option for those with no or poor credit. Such cards are typically from smaller companies and startups, and many of them do not require a security deposit at all.

The issuers behind these cards can opt to use proprietary, nontraditional underwriting standards — such as income, employment and bank account balances — to evaluate the risk of lending to you.

Thanks to a unique underwriting process, it could be a good choice if you have less-than-ideal credit. It can evaluate your bank information to get a clear picture of how you manage income, savings and spending. The card is light on fees, reports to all three credit bureaus, and even offers the chance at earning rewards.

You may be required to link your bank account in order to get this card, and the rewards it does earn are only with select merchants. Earn a credit limit increase in as little as 6 months. Terms and conditions apply. No credit score? No problem. If eligible, we'll create your Cash Score instead.

Petal's mobile app makes it easy to manage your money, track your spending, and automate payments. See if you're pre-approved within minutes without impacting your credit score.

Click the card name to read our review. Our pick for: Rewards and upgrading. Unlike most others, it offers rewards. But what really makes it stand out from the competition is its upgrade possibilities. The issuer has a process in place for automatically reviewing accounts for possible transition to an unsecured card. Read our review. Oh, and 1. Our pick for: Low deposit. Further, you can be automatically considered for a higher credit line with no additional deposit in as little as six months.

Our pick for: Basic card for thin credit. One note: This card is for people just starting out with credit, rather than people with bad credit from past mistakes. Our pick for: No credit check or no bank account. First, there's no credit check required. Second, you don't need a traditional bank account; you can fund the deposit or pay your bill with a money order or Western Union payment. Our pick for: Easy account management. This card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late.

But to get it, you must be a Chime banking customer, which is an extra hoop to jump through — and which comes with its own considerations when it comes to customer service. Our pick for: No-deposit alternative. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts.

And there's no annual fee, late fees or foreign transaction fees. Our pick for: Adjustable credit limit. Our pick for: Military. Our pick for: Low fees and interest.

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.

Ideally, the card you get will report your account activity to all three most cards do , but two is better than nothing. A credit card that doesn't report account activity to the credit bureaus is not a card worth having. This is the one dealbreaker if you want to build your credit.

The security deposit is what makes a secured credit card an option for people with bad or no credit. You pay an amount of money when you open the account, and the card issuer holds that money as collateral. Your credit limit is typically equal to your security deposit, so you can't charge more on the card than you've deposited.

When you upgrade your account or close it in good standing, you get your deposit back. You can deposit more money to get a higher limit. If you have extra money available, the maximum deposit amount might be as much a consideration as the minimum when choosing a secured card.

And, if you don't, consider saving up for a secured credit card deposit. Some secured credit cards require you to make your deposit immediately upon approval, while others give you a little time to get the money together. Failing to fund the deposit in time can result in your application status being moved from approved to rejected, so having the money in hand when you apply is your best bet.

Many of the best secured credit cards don't charge an annual fee. If you're going to pay a fee, you ought to get something for it, such as a lower interest rate or the ability to qualify without a credit check. With a good secured card, the annual fee should be the only unavoidable fee.

Don't go for cards that charge a fee to apply or for "processing" before you open your account. Some cards have monthly "maintenance" fees or tack on an extra charge every time you use your card or pay your bill online.

These cards aren't designed to help you build credit; they're designed to bleed you dry. Just because you have bad credit doesn't mean you deserve a bad credit card. If you're using your card responsibly, you shouldn't be paying late or getting cash advances, actions that typically incur fees.

A secured credit card should not be a long-term proposition. Use it to build your credit, then get a better card. Some of the top secured credit cards come from issuers that also offer products for good or excellent credit. When you've improved your credit enough, you can upgrade your account to an unsecured card and get your deposit back. You might also want to look for a card geared toward consumers with low credit that don't require a deposit.

CNBC Select has a few suggestions in our roundup of the best cards for building credit. Skip Navigation. Follow Select. Our top picks of timely offers from our partners More details. SoFi Personal Loans. LightStream Personal Loans. We may receive a commission from affiliate partner links.

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