After 20 hours of research evaluating 105 products, we picked Capital One Secured Mastercard as the All-Around Best Secured Credit Card.
"Sorry, but we are unable to approve you at this time."
Sound familiar? It's difficult to get approved for traditional credit cards if your FICO is too low or your debt-to-income ratio is too high. That's why many folks avoid credit card applications and stick with prepaid debit cards instead.
But you have other options:
Many people have a positive experience establishing or rebuilding their credit with secured credit cards. You can generally get approved for secured cards even if your FICO score needs a major overhaul or you're recovering from a recent bankruptcy.
But why do secured credit card companies send out welcome emails instead of rejection letters to so many people?
Simply put, it's because they're giving you a credit line funded by your own money. There's not much of a risk for them if you bail on payments. Unfortunately, it's still risky for you to miss payments because many secured cards report to all three credit bureaus.
Here's the good news:
These creditors also report on-time payments, which may help your credit history. Eventually, you might even raise your FICO enough to qualify for unsecured cards like one of the best travel credit cards or a card from your favorite retailer.
Exciting, right? It's a wonderful feeling to know that you're headed toward financial stability.
Your path toward better credit begins here at Faveable, and we're psyched to share our top credit card picks with you. Review the best secured credit cards below to find one worthy of a spot in your wallet.