Whether you have bad credit or no credit, having a credit card is a vital part of having good credit. For me, I am working on increasing my score and I need a credit card. I haven’t had a credit card in years and I do not have many things on my credit report. I need to diversify my credit report. If you are in my shoes where you need to beef up your credit report, responsibly using a credit card is the perfect way.

Let’s talk about the facts.

Secured Credit Card

  • Good if you have no credit or bad credit

  • Requires a deposit as collateral

    • Ex: You give them $500 and you will have a $500 credit limit, if you give them $1000 you will have a $1000 limit

  • If you close the card or your card is converted to a unsecured credit card you will receive the deposit back

  • Reports to all 3 credit bureaus

Unsecured Credit Card

  • Typically requires an establish credit history which is deemed fair and up credit history

  • Reports to all 3 credit bureaus

When you are building your credit a secured card is a great way to do it. It is not glamorous nor does it come with all the cute credit card perks but it will get you there. 

So what are my options? In this order:

Discover It – Secured Credit Card

  • $0 Annual Fee

  • 1% – 2% Cash Back

  • Cash Back Match (first year)

  • $200 Minimum (deposit)

Open Sky – Secured Credit Card

  • No Credit Check

  • No annual fee

  • No Cash Back 

  • $200 Minimum

Credit One Bank Platinum Visa for Building Credit

  • Unsecured Credit

  • Fee – $0, $35, $55, $95 – then yearly $99

  • $200 – $300

  • This is your LAST resort. It has high fees!!!!

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