Many consumers make the mistake of turning to prepaid debit cards for their main credit card when their credit score is low. Not only is this unwise, but it is very costly. The worst part is that a prepaid debit card will not build up your credit score. If you want to seriously improve your credit score this year, then you need to be looking into secured credit cards.
Living in San Francisco can be incredibly expensive, and you don’t want to drive yourself further into debt. However, with the right secured card you can rebuild your credit within a year while keeping yourself in the green.
1. Provident Credit Union’s Share Secured Visa
Obtaining a secured card through your local credit union can be wise due to the high level of member service and competitive rates these financial institutions offer. If you ever need assistance, you can just walk into a branch of your local credit union instead of being put on hold for an hour with other credit card companies.
Provident Credit Union has 15 locations in San Francisco and offers a secured Visa for those with poor or no credit. Provident Credit Union’s interest rates are also lower than the national average, with a variable APR starting at 8.35%.
2. First National Bank of Omaha’s Kickstart Secured Visa
What makes this secured credit card stand out is the high credit limit and the opportunity to quickly improve your credit’s health. Most secured cards have a limit of $300. The credit union’s Kickstart Secured Visa’s limit ranges from $300 to $5,000, depending on your credit score. This card also allows you to get more unsecured credit after only six months of use, without an additional deposit. In as few as nine months, you might qualify for an unsecured credit card through First National Bank of Omaha.
3. Capital One’s Secured MasterCard
One of the best rated secured cards is from Capital One. The downside of this card is that it comes with a 22.9% APR and a $29 annual fee. However, this card also features a free membership to CreditInform, which will help you monitor and understand your credit score better. With text alerts for low balances and payments due, there is no excuse to make a late payment!
4. Merrick Bank’s Secured Visa Card
The number one benefit of the Secured Visa from Merrick Bank is that you receive a free credit report each month, which can be very encouraging and helpful as you strive to improve your score. The annual fee and APR are comparable to other secured credit cards, and the credit line is up to the user’s discretion, ranging from $200 to $3,000.
5. USAA’s Secured Credit Card
For those who like the benefits that come along with American Express or wish to obtain a MasterCard, the USAA Secured Credit Card is a great choice as users have the option of either of these card types.
Pat yourself on the back for taking the right steps in rebuilding your credit. Remember to keep your monthly charges low, to always pay off your monthly balance on time. It might seem like a slow process at first, but before you know it your credit score will noticeably improve.