If you’ve struggled with bad credit and you’re looking to make some big decisions in life then you may be ready to start researching getting a secured credit card. We’ve done all the homework for you and have come up with the best secured credit cards of 2011 to help rebuild your poor credit.
Best Secured Credit Card Criteria
How to we determine what the best secured credit cards are? We have several criteria ranging from annual fee amount, sign-up fees to interest rates. Let’s get into more detail of our criteria for choosing the best secured credit cards.
- Application Fees – Many secured cards have an initial sign up fee which is processed when you turn in your application. Most are nominal at less than 10 dollars but you can also find many cards that are absolutely free. In our 2011 survey of best credit cards we found that most cards with no application fee tend to be a bit more difficult to apply for if your credit is extremely low (below 500)
- Yearly Fees – Most secured credit cards have an annual fee associated with them to cover maintenance and service. Yearly fees can be very varied and range from $25/year to over $100. Make sure you read the fine print on your secured credit card application to figure out if maintenance fees are monthly or yearly.
- Interest Rate – While you’re not likely to get a great deal on your interest rate with a secured credit card, they do vary from card to card. If you’re really concerned about your interest rate then you shouldn’t consider getting a secured card. You really need to be paying off your secured credit card each month and keep a zero balance on your card. If you’re late on a few payments you can hurt end up owing more than your balance allows and hurt your credit even further.
- Credit Line – Each secured card has a different credit line amount you’re allowed which is determined through your initial deposit. Some cards are as low as $500 and some are as much as $3,000 or more. Plan accordingly by determining how often you plan on using your card and what you’ll use it for.
- Credit Bureau Reporting – The point of getting a secured credit card is to rebuild your credit so why bother with a secured credit card that doesn’t report to the major credit card companies? All the cards we reviews in our Best Secured Credit Cards of 2011 report to the 3 major credit bureaus.
- Other Fees – We’ll also examine hidden fees such as balance transfers and limit increases. These fees can add up quickly over time so it’s important to pay careful attention to extra fees.
With all those items taken into consideration let’s get right into our report of the best secured credit cards for 2011.
SecuredCreditCardRx.com’s Best Secured Credit Cards for 2011
#1 – Capital One® Secured MasterCard® Credit Card
Capital one has been a leader in secured credit cards for over a decade. They’re very lenient with who they accept into their program and offer very attractive incentives in signing up for a secured card.
Name: Capital One® Secured MasterCard® Credit Card
Application Fees: None
Balance Transfer Fees: None
Annual Fee: $29
Min Initial Deposit: $49 – $200 depending on your credit score
Max Credit Limit: $3000
APR: 22.9%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: None
Exlusive! Read our Full Capital One Secured Credit Card Review
#2 – Applied Bank® Secured Visa® Credit Card
The Applied Bank® Secured Visa® Card made it to number 2 because the card has no application fees, a very low interest rate for a secured card and there is no credit check run when you apply making the card very easy to get even with dismal credit.
Name: Applied Bank® Secured Visa® Credit Card
Application Fees: None
Balance Transfer Fees: None
Annual Fee: $50 first year then $9.95/mo ($119.40/yr)
Min Deposit: $200
Max Credit Limit: $5000
APR: 9.99%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: $100 every time you increase your limit
#3 – Citi® Secured MasterCard® Credit Card
We liked the Citi® Secured Credit Card because of the reasonable interest rate and the fact that they upgrade you to an unsecured credit card after 18 months of activity as long as you stay in good standing. We also like that your deposit grows interest in your savings account – a feature not found from many secured credit cards.
Name: Citi® Secured MasterCard® Credit Card
Application Fees: None
Balance Transfer Fees: 3% of balance
Annual Fee: $29/yr
Min Deposit: $200
Max Credit Limit: $5000
APR: 18.24%
Credit Bureau Reporting: Experian, Equifax, Transunion
Notable Extra Fees: None
Which of our Best Secured Credit Cards for 2011 is Right for You?
The answer to this question will vary from person to person and you need to ask yourself what you plan on doing with your card. Will you be carrying a balance on your card each month? Then choose a card with the lowest interest rate. Are you going to be paying you balance off each month? Then choose a secured card with the lowest yearly fees. Before you make you decision be sure to do your own homework and read all the terms and conditions before you fill out an application for any of the cards on our list of best secured credit cards for 2011. If you make your decision wisely and are diligent about paying your card off every month then you’ll be on your way to great credit in no time.
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