Secured Credit Card Ratings

Basics of a Secured Credit Card

A secured credit card is an excellent way for students or young adults to establish credit and for consumers who have poor credit histories to re-establish credit. To obtain a secured card you will be required to deposit money in a savings account or certificate of deposit (CD). The amount of money you deposit will be your credit line on your secured credit card. Your deposit must remain in the account or your card will be cancelled. The deposit, and any money you add to it, will earn interest.

As you use your card, you are using your savings account or CD as collateral instead of the bank issuing a credit line. Most cards allow you to add to your account if you want to increase your available credit.

The secured credit card can be used at retail, online, in banks and at ATMs in the same way as an unsecured credit card. Most card issuers report card activity monthly to major credit bureaus. This reporting helps a cardholder to start to build a positive credit history with the credit bureaus if they are paying their credit card bill on time.

Selecting a Secured Credit Card

Many issuers of unsecured credit cards also offer a secured credit card. Generally the fees and annual percentage rate are higher than those charged on an unsecured card. There may also be a processing fee and a monthly maintenance fee.

Look for a secured credit card with the features that meet your particular needs:

• High credit line – Look for a card that allows you to deposit up to $15,000 in your collateral savings account.
• To carry a credit card balance – Look for a card that has a reasonable APR.
• To receive cash from your credit card – Look for a card with the Visa or MasterCard logo so you can use ATMs worldwide to receive cash advances.
• If you travel – Look for a card that provides auto rental collision damage waiver and travel accident insurance benefits.

The Top Secured Credit Card Ratings

Websites such as Best Credit Card Offers, CreditCards.com and Ask Mr Credit Card review the features and rates of the available secured credit cards. The information they provide can be helpful in determining which card might be the best fit for your needs. Of all the secured credit cards available, three cards are highlighted by all of these sites – the Orchard Bank Secured MasterCard, the New Millennium Bank Secured Platinum Visa or MasterCard and the Centennial Secured MasterCard.

Orchard Bank Secured MasterCard

The Orchard Bank secured card is issued by HSBC, one of the largest financial institutions in the world. It is highly rated because it has a reasonable APR and relatively low fees, making it an excellent choice if you plan to carry a balance or if you need a larger credit line.

The card's features include:

• Credit lines from $200 to $15,000 depending on the balance in your savings account
• Reasonable APR
• No one-time processing fee
• Low annual fee – actual fee varies from $0 to $39 depending on your credit history
• Reports monthly to all 3 major credit bureaus
• Cash at over 740,000 ATMs
• All the standard features of a secured MasterCard including:
  • Zero Liability Fraud Protection
  • Emergency Cash and Card replacement

New Millennium Bank Secured Platinum Visa or MasterCard

The New Millennium Bank secured card is another highly rated secured credit card. It has a somewhat high APR, so it is best for a cardholder who plans to pay off their balance each month. The guaranteed approval makes this a good choice for someone who has a poor credit history.

The card's features include:

• Credit lines from $300 to $5,000
• $99.95 one-time processing fee
• $59 annual fee
• Reports to all 3 major credit bureaus
• Cash at over 740,000 ATMs
• Guaranteed approval regardless of credit history
• Emergency cash transfers
• Auto rental insurance
• $100,000 travel accident insurance
• Extended warranty protection

Centennial Secured MasterCard

This is another highly rated secured credit card. Like the New Millennium Bank Secured MasterCard, the Centennial Secured Card has a somewhat high APR, so it is best for a cardholder who does not plan to carry a balance. There is no one-time processing fee but there is a monthly account maintenance fee.

The card's features include:

• Credit lines from $200 to $5,000
• No one-time processing fee
• $69 annual fee
• $3 monthly account maintenance fee
• $3.95 one-time Internet access fee
• Reports to 4 credit bureaus
• Cash at over 740,000 ATMs
• All the standard features of a secured MasterCard including:
  • Zero Liability Fraud Protection
  • Emergency Cash and Card replacement

Select the Right Card for You

Many credit card issuers offer secured credit cards to provide credit to individuals who don't have a sufficient credit history to be approved for an unsecured credit card. Be sure you get the card that is best for you. Narrow you’re your options first by reviewing the secured credit card ratings. Then, review the benefits and fees of the highest rated cards to select the best credit card for your particular cash management needs.