If your poor credit has kept you from obtaining a credit card, you might think you’re in a catch-22, as making credit card purchases and paying the balance on time is a means of strengthening credit. You do have options though, as secured credit cards are easy to obtain and are designed for this very purpose.
Choosing the right type of credit card is important if you are looking to rebuild or establish credit. But with so many options in the market, it can be hard to choose the right card for your needs.
4 Best Credit Cards for Improving Your Credit Score
1. Seattle Bank’s Secured Visa
If you need to establish credit, or were turned down for a credit card in the past, then Seattle Bank‘s Secured Visa card is a great option for you.
With the Seattle Bank Secured Visa, you’ll enjoy the benefits and convenience of a credit card while improving your credit score. Because it is a secured card, it is linked to a savings account with deposited funds to secure your balance.
This card comes with an annual fee of $35 and a variable APR of 20.99%. You can select a credit limit from $300 to $5,000, depending on how much you want to deposit in the linked savings account. And as a bonus, with this secured credit card you’ll also earn interest on your deposited funds.
2. Seattle Metropolitan Credit Union’s Secured Visa
Obtaining a secured credit card and making on-time payments is a great way to rebuild your credit. But many secured credit cards come with an annual fee.
This is not the case with Seattle Metropolitan Credit Union‘s Secured Visa credit card, as it doesn’t charge an annual fee and comes with a maximum 17.99% APR.
And because Seattle Metropolitan Credit Union provides credit reporting to the major credit bureaus, you can be assured that by making on-time payments, your credit score will improve.
Seattle Metropolitan Credit Union provides financial services to anyone who lives or works in the state of Washington, including employees of the City of Seattle.
3. Salal Credit Union’s Secured Visa
The Salal Credit Union Secured Visa is a good tool to build or re-establish credit. To be eligible for a card, you must have a savings account with the credit union and have funds equal to 110 percent of your desired credit limit, which will be held as collateral. This card also comes with a fixed interest rate of 18% APR.
These conditions might sound more onerous than some other secured credit cards, but the Salal Credit Union Secured Visa also comes with no annual fee and your security deposit will earn interest. Anyone who lives or works in Washington state is eligible to join this credit union.
4. Sound Credit Union’s Visa Blue Secured Card
The Blue Secured Visa credit card is available to all Sound Credit Union members who want to improve their credit scores. If you live or work in Washington state, you are eligible to join the credit union.
With this secured card, members can use funds in their savings accounts or other deposit accounts as security against their credit card balances. Cardholders can obtain a credit limit that’s up to 75 percent of their collateral account balance.
The card has no annual fee and a variable APR ranging from 8.95% to 17.95%, based on your credit history. The Blue Secured card also comes with a number of extra features, including personal identity theft coverage of $1,000, travel accident insurance coverage of $400,000 and an auto rental collision damage waiver. And of course, online purchases are protected through Verified by Visa.