The Best Secured Credit Cards for Personal and Business here for your review for 2021. Matter of fact we broke the credit cards into top 5’s.
So what is a Secured Credit Card?
Well let’s break it down just in case your clueless about this amazing credit building tool. Very useful to get you to an 800 credit score.
Secured credit cards act a lot like regular credit cards. The main difference is that with a secured card, you pay a cash deposit upfront to guarantee your credit line.
While credit history may be used to determine eligibility for a secured card, the line of credit you can get requires a security deposit. This security deposit is a safeguard for banks to cover any purchases, should you miss payments. Making your monthly payments on time is just as crucial with a secured credit card as with a traditional card. Remember, if you default on your payments, the card issuer may keep your deposit.
A credit card that provides security to the cardholder if he can’t make his repayment is called a secured credit card. A cardholder uses a secured card including the cash deposit in it as collateral. It is provided to those who have a small or poor credit profile.
The functionality of secured credit cards is the same as credit cards. People use it for the improvement of credit scores. Besides, it also helps to establish a credit history for the new borrower. Let’s jump into more details about secured credit cards.
How Does a Secured Credit Card Work?
If you have bad credit, simply relying on cash, prepaid cards or debit cards to make your purchases will do nothing for your credit score because the activity doesn’t get reported to the major credit bureaus. When handled the right way, using a secured credit card to help establish or rebuild your credit can show whoever gave you your credit cards and to the credit reporting agencies that you are a responsible consumer who used credit wisely. To help build your credit—and to avoid interest charges—pay your balance in full every month, before the due date.
Top 5 Secured Credit Cards for Personal 2021
- Citi® Diamond Preferred Card®
- Discover it® Cashback Credit Card
- Capital One Venture Rewards Credit Card
- Harley-Davidson® Visa® Secured Card
- Unity® Visa Secured Credit Card
Top 5 Secured Credit Cards for Business 2021
- Wells Fargo Business Secured Card
- BBVA Compass Secured Visa® Business Card
- First National Bank of Omaha Business Edition® Secured Visa® Card
- Bento for Business Credit Card
- OpenSky® Secured Visa® Credit Card
More on secured credit cards for business
One option to help you build your business credit is a secured business credit card. Using secured business credit cards responsibly and paying your bills on time can help improve your business credit scores and potentially open up more funding options down the line.
The way we prefer to do it is by building up a solid foundation of personal credit and using a PG or an personal guarantee. This will allow you to launch businesses faster without going thru the standard building process. Your personal credit will serve as proof that you can manage funds.
Best overall secured business card for 2021: Wells Fargo Business Secured Credit Card
Who’s it for?
The Wells Fargo Business Secured Credit Card may be a great choice for small-business owners who have several employees and are looking for a card that earns rewards with no annual fee. It may also be a good option for business owners who travel internationally and want to score with no foreign transaction fees.
A awesome choice for anyone looking for The Best Secured Credit Cards for Personal and Business. It can be a great choice for building business credit with a secured business credit card.
Why we dig it
We dig this card because it offers a wide-ranging credit limit based on the amount you deposit — $500 to $25,000 — plus perks, like no foreign transaction fee and a rewards program. New cardholders can enroll in the Wells Fargo Business Card Rewards® Program and select the cash back option to get 1.5% cash back per $1 spent on eligible purchases, with no limit to the cash back you can earn.
Or you can select the Reward Points option and earn one point per $1 spent on purchases, with a potential monthly bonus of 1,000 points when your business spends $1,000 or more in any monthly billing period.
What to watch out for
This card gets our vote for best overall secured business credit card because of its flexability and rewards. But heads-up: Any rewards points you earn expire within three years, and the cash back rewards are credited once per quarter and put into either your credit card account or an eligible designated business checking or savings account.
How to use it
Once you’re approved for this card, your credit limit will be based on the security deposit that you put down. Using the card for your business expenses and making your payments on time could help build your business credit.
Wells Fargo will review your account from time to time to assess if you can upgrade to an unsecured business credit card.
Best secured business card for new business owners: BBVA Secured Visa® Business Credit Card
Who’s it for?
If you just started your business, the BBVA Secured Visa® Business Credit Card is one hell of a good option.
Why we dig it over here
We dig this card for new business owners because it has no annual fee for the first year (then $40 each year) and offers online services to help streamline your business expenses. If you have employees, you can get additional employee cards at no extra cost. You can also rack up rewards through the BBVA Rewards – Business Rewards program, earning 1.5 points for every $1 spent on eligible purchases.
Watch out for
You’ll need to open a Secured Credit Card Savings Account with BBVA in order to qualify for this card, with a minimum opening deposit of $500. On top of that, you should know that the card has a variable APR of 16.24% for purchases and balance transfers and a foreign transaction fee of 3% of each transaction in U.S. dollars.
How to use it
In order to cop this card, you’ll need to drop by in person — the bad news, BBVA only has branches in Alabama, Arizona, California, Colorado, Florida, New Mexico and Texas.
In Conclusion
A bad credit score makes you look risky. So, it is necessary to improve your credit score, whether it is personal or business. Improving your credit score will help you to get other loans or other finance options. So, if you are looking for the best-secured credit card for your business or yourself, you can go for one of the cards mentioned above
If you use your card properly, your credit score should improve over time. Once your score has got better, you have many options. You can keep your secured credit card, close it out, or ask whoever gave you your card about upgrading to an unsecured card, which in my opinion is much better for your credit score than opening a new account.
Well that’s our wrap up on the Best Secured Credit Cards for Personal and Business. We hope you learned something. You should also check out GET AN 800 CREDIT SCORE IN 45 DAYS.