Not everyone can qualify for top-of-the-line credit cards with rich rewards, high limits or super-low interest rates. If you’ve been turned down because of bad credit or no credit, a secured credit card is probably your best option. These cards require a security deposit, which makes them easier to get.
How much should I spend on my secured credit card?
Your utilization is calculated by dividing your statement balance by your total available credit. People with the best credit scores have utilization levels of 10% or less, but at most, you want to stay below 30%. That means if you have a credit limit of $200, you should not spend more than $60 a month on the card.
How long does a secured credit card last?
You should keep a secured credit card open for a minimum of 12 months, and up to several years, depending on your credit score. It’s best not to cancel a secured card until you’ve built up a fair credit score and gotten approved for an unsecured credit card with no annual fee or great rewards.
How much should you spend a month on a secured credit card?
Using Your Secured Credit Card Multiple Times Per Month A good rule of thumb is to only use 30% or less of your available credit. And in general, you should strive to not carry a balance between months, as that will lead to costly interest charges.
Do you get money back from secured credit card?
In most cases, your security deposit will be refunded once your account balance is paid off and the account is closed, or when your secured credit card is converted to an unsecured credit card. Once you’ve transitioned to an unsecured card, the card issuer will refund your security deposit, minus any outstanding fees.
What credit score is needed for Discover secured card?
Compare to Other Cards
| Discover it® Secured Credit Card | OpenSky® Secured Visa® Credit Card | First Progress Platinum Select Mastercard® Secured Credit Card |
|---|---|---|
| Recommended Credit Score 300629poor | Recommended Credit Score 300689poor – average | Recommended Credit Score 300629poor |
