Best Secured Credit Cards

Secured Credit Cards, a good option?

We know how difficult it can be to have a credit card, even more so when your credit history in nonexistent or negative credit bureau, so knowing the best secured credit cards will undoubtedly be of great help to start off on the right foot. In the following lines we will explain a little more about What are secured credit cards? And what are the best secured credit cards for 2021?

What are secured credit cards?

Secured credit cards are a tool that provides the opportunity to start or up your credit score, with the backing of Visa or MasterCard, which facilitates their use nationally and internationally. Secured credit cards offer security to the financial institution that issues them, since, in order to access them, one of the indispensable requirements is to make a deposit, which in turn will establish your credit limit.

What is a secured credit card for?

A secured credit card offers the possibility of demonstrating to the financial institution the level of responsibility when it comes to paying the debt, which is why it serves first hand to create your credit history before the credit agency’s credit bureau. These cards are the perfect instrument to open the way to new and better credit options, increasing your credit score.

How does a secured credit card work?

The function of a secured credit card is similar to that of a debit card. By not having a credit history or having negative marks in the credit bureau, it will be very difficult for financial institutions to put your capital at risk, so you will have to make a deposit that establishes your credit limit.

Deposits made and destined to the secured credit card are directed to a special account, therefore, these funds are frozen and you will not be able to touch them. These deposits form the available credit limit and once they are made, you will be able to use the credit card, taking into account that you will have to pay interest if you do not pay the balance at the end of the month.

Characteristics of secured cards.

You should keep in mind that a secured credit card is a payment method that you can use to make online and in-store purchases, while enjoying the benefits offered by the issuing bank, such as participating in rewards programs, points and cash advances.

What characterizes this type of card is the ability to avoid indebtedness, since the money available to you is tied to what you have funded on it, being able to recharge it after use and recover your credit limit, allowing you to create or up your credit profile with any financial institution.

What are the requirements for a secured credit card?

As with other financial or credit products, there are certain requirements that you must meet at any financial institution:
Be over 18 years of age
Have a valid official ID
Proof of address
Make the first deposit of the line of credit