Secured credit cards are one of the most trusted ways of building or rebuilding your credit. And recently, that just got better! Did you know you can know apply for secured credit cards that will offer you DOUBLE your security deposit as your credit limit?
How do secured credit cards work?
A secured credit card is one where you open a savings account at the bank that is issuing the secured credit card. Traditionally, the amount that you put in that savings account will be your credit limit. Until now. You can now apply for a secured credit card that will DOUBLE your credit line based on your security deposit!
How will opening a secured credit card improve your credit?
By doing this, you’ll get a brand new line of credit, that will report to all 3 of the major credit reporting agencies (Experian, TransUnion and Equifax). When you use it responsibly, secured credit cards make a great foundation for credit building / credit repair.
Benefits of secured credit cards:
- They can report to all 3 of the major credit reporting agencies
- They add a new positive trade line to your credit report
- Guaranteed approval – many of the secured credit card banks don’t pull a credit check.
- Perfect first credit card for people with no credit
- Your security deposit gets refunded to you – usually after a year of on time payments
Why are secured credit cards that will double your security deposit a big deal?
Secured credit cards have always been a relatively safe way for lenders to extend credit to people with bad credit. Or even people with no credit. Since the security deposit equals the credit limit, lenders didn’t have to worry about not getting paid. If the consumer failed to pay on their secured credit card, they would simply KEEP the security deposit to pay off their debt.
Secured credit cards that offer double your security deposit as your credit limit
- Put down $200, which becomes your credit line. Then, if you qualify, double your credit line to $400 without making another deposit.
- Double your $200 credit line by making at least your minimum payment on time each month for the first 7 months your account is open.
- Secured Credit Cards are great for people looking to build or rebuild credit and are available to people with all kinds of credit backgrounds.
- Unlike a debit card or a pre-paid card, it helps build your credit history. We report your payment history to all three major credit-reporting agencies.
- Get 100% U.S.-based customer service & get your FICO® Credit Score for free each month.
- Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with available Auto Pay and account alerts.
- Card issued by Merrick Bank, Member FDIC.
- Credit lines range from $500-$1,350 which double to $1,000-$2,700 after your account qualifies. No security deposit required.
- Double your credit line by making at least your minimum payment on time each month for the first 7 months your account is open.
- See if you are pre-approved within minutes, without affecting your credit score.
- Build or rebuild your credit. As you pay your bill every month, we report to all three major credit reporting agencies.
- Get 100% U.S.-based customer service & get your FICO® Credit Score for free each month
- Fraud coverage if your card is lost or stolen. Access your account 24 hours a day, 7 days a week. Get help staying on track with Auto Pay and account alerts.
- Card issued by Merrick Bank, Member FDIC.
Keep the following tips in mind when choosing a secured credit card:
People with poor credit know how it feels to be rejected by lenders and to never get the opportunity to build their credit. Secured credit cards offer a safe and effective way for them to start building good credit.
But not all secured credit cards are the same. Always keep in mind the following:
- Choose a secured credit card from a reputable bank
- Think about how much you have to put down for a security deposit. Some secured credit card companies will allow security deposits up to $5000.00
- Comparable credit will help you get approved for larger lines of credit. So if you can put down a large security deposit, then do so. You want to have a few credit cards where the credit limit is over $1000.00
- Don’t forget about secured credit card companies that will double your security deposit. Maybe you only have $200 to put down as a security deposit. But by using one of the double your credit limit secured credit cards, your credit limit will be $400 not $200.