Digital News Report – Credit scores declined last year and many Americans find it difficult to qualify for a credit card. Although the number of applications sent-out by credit card companies jumped last year, banks are still cautious when it comes to approvals.
There are cards designed specifically for applicants with a poor or bad credit history. Some cards require a security deposit while others do not. Cards that do not require a deposit will carry a high interest rate, up to 60% or more.
Secured cards are different from pre-paid credit cards because payments are reported to the credit reporting bureaus. On-time payments, this can help improve credit scores.
The Capital One® Secured MasterCard is a popular card. Users can reserve hotel rooms, rent cars and make online purchases.
The card has an ongoing APR of 22.9%. The same rate applies to balance transfers. The annual fee is $29.
There are some benefits to staying current. “Your refundable security deposit can get you a line up to $3000”, the bank said in a statement. A portion of your security deposit is refundable. “
By Tina Brown