Once you're ready to apply, here’s what to consider when choosing a secured credit card that’s right for you: What’s the security deposit?īefore applying, check to make sure the card’s minimum and maximum security deposits fit your budget. Be mindful of any recent name or address changes, as this can affect your credit. Inaccurate information in your credit history could cause issuers to deny your card applications. Working on your credit will get you closer to qualifying for cards with better features and benefits.īefore applying for a secured card, you should correct any errors on your credit report. When used responsibly, secured credit cards can help you build or rebuild credit. Next, you can evaluate how much you’re willing to spend, how flexible you want your credit limit to be and if you want a better chance to earn rewards. When deciding between a secured or unsecured card, know your credit score. Often in exchange for lending to a “riskier” borrower, these unsecured cards will come with annual fees. While you may prefer an unsecured credit card for bad credit, especially if you want to avoid the upfront cost of a deposit, it might not be the most cost effective choice. Have stricter credit requirements, which could make them more difficult to access with a lower credit scoreĬredit builders often start with a secured credit card then graduate to an unsecured credit card with better rewards rates and lower fees as their score improves.Starting credit lines are often equal to the amount you deposit.Can be more accessible than some unsecured cards.If you are trying to decide between a secured or unsecured credit card, check out some of their main differences below. Want to learn more? Read our full guide on how secured credit cards work. Some unsecured cards for bad credit exist, but a secured card could be easier to qualify for because the deposit reduces the issuer’s risk of losing money if you default on payments. You might have an opportunity to upgrade to an unsecured card with no deposit if you use the secured card responsibly. Secured cards are ideal for people with no credit history or a low credit score. Join over 1.2 million cardholders who’ve used OpenSky to build their creditĪ secured credit card is backed by collateral, usually a refundable security deposit from the cardholder that also serves as your credit limit. Get free monthly access to your FICO score in our mobile applicationīuild your credit history across 3 major credit reporting agencies: Experian, Equifax, and Transunionįund your card with a low $200 refundable security deposit to get a $200 credit lineĪpply in less than 5 minutes with our mobile first applicationĬhoose the due date that fits your schedule with flexible payment datesįund your security deposit over 60 days with the option to make partial payments With an 87% average approval rate for the past 6 months, OpenSky gives everyone an opportunity to improve their creditĮxtend your $200 credit line by getting considered for an unsecured credit line increase after 6 months - no additional deposit required! Looking to build or rebuild your credit? 2/3 of cardholders receive a 48+ point improvement after making 3 on-time payments Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). This is money you can use to pay off your charges at the end of every month.Ĭredit Builder: To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. **No Minimum Security Deposit: Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. *No interest: Out-of-network ATM withdrawal fees apply except at MoneyPass ATMs in a 7-Eleven location or any Allpoint or Visa Plus Alliance ATM. and may be used everywhere Visa credit cards are accepted. The Chime Credit Builder Visa® Card is issued by Stride Bank, N.A., Member FDIC, pursuant to a license from Visa U.S.A. Banking services provided by The Bancorp Bank, N.A. It has no interest*, no annual fees, no credit check to apply, and no minimum security deposit required**.Ĭhime is a financial technology company, not a bank. The Chime Credit Builder Card is a secured credit card that can help consumers safely build credit history.
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