![]() That’s because a chunk of your score is based on your overall credit utilization, and if you have a situation where you need to charge a few hundred dollars to your card, you’ll have used up most of your available credit. ![]() Be aware that this card also has a low credit limit of $1,000, which means it could be more of a challenge to improve your credit at a certain point with the card. The issuer will also start reviewing your account in as soon as six months to see if you qualify for a higher credit line. This could be a huge boon to someone short on cash who is trying to improve their credit standing. All three options will get you the minimum credit line on the card of $200. Depending on your creditworthiness, you can deposit either $49, $99 or $200. The $0-annual-fee Capital One Platinum Secured Credit Card has a unique feature not seen on most other secured cards. The issuer will also review your account starting at seven months to see if you qualify to have your deposit returned, compared with the Bank Americard Secured card which doesn’t specify any timeline. And, at the end of your first year, Discover will automatically match your earnings, dollar for dollar. Plus, earn unlimited 1% cash back on all other purchases-automatically. You can earn 2% cash back at gas stations and restaurants on up to $1,000 in purchases each quarter. Discover it® Secured Credit Card earns rewards, something only a tiny handful of other secured cards offer. But it’s got more might than the BankAmericard Secured card. The Discover it® Secured Credit Card reports to the three major credit bureaus. Although there are worse choices than this card, there are also better ones.īankAmericard® Secured credit card * vs. The BankAmericard Secured card doesn’t offer any meaty extras like rewards or other perks, and the ongoing APR is high. There’s also little incentive to hold onto the card beyond the earliest credit-building stages. However, Bank of America will return any overage you use to secure your account. That’s fairly unusual for a secured credit card. The maximum limit on the BankAmericard Secured card is $5,000.Įven if you can pony up that full amount, Bank of America may not approve you for that high of a credit limit. Most other secured cards simply make your credit limit the amount you’re willing to pay upfront, although most cap it at a few thousand dollars. For starters, Bank of America will determine what credit limit to grant you based on a combination of what you can put up as a deposit, your income and their opinion on your ability to repay charges. It’s a huge plus that there are no annual or other unnecessary fees some cards aimed at those with poor credit tend to charge. If you have an eligible checking account at Bank of America, you can also opt-in for overdraft protection, a nice feature not often found on secured cards.īut there are some big negatives that weaken the card’s overall appeal. If they deem you’ve bulked up enough, you’ll qualify to have your deposit returned to you. ![]() Bank of America says in the fine print that they’ll regularly review your credit-related activity to see if you’ve shown solid behavior on all of your accounts. This means with regular payment behavior, your score will see results. When it comes to improving credit, consistent on-time bill payments are key, and this card reports to all three credit bureaus. The Bank Americard Secured card has a few key attributes that can make it a powerful credit-builder. ![]() If your existing credit is too weak to qualify for an unsecured card (meaning one you don’t have to pay an upfront deposit for) the first step to getting your credit score in shape is usually a secured credit card. ![]()
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