Looking for a non-scummy secured credit card.
April 15, 2012 9:57 AM Subscribe
So who's the least scummy secured credit card issuer out there?
As much as I hate the whole credit industry, I need to start rebuilding my credit since student loans destroyed my score. I'm looking for a no/very low annual fee, reports to the credit reporting agencies as unsecured, ability to deposit to increase the line of credit, unsecures after a reasonable amount of time and no "gotcha" kind of fees. I know I probably won't be able to find one that hits all those notes but my googling has revealed a lot of conflicting or outdated information so I want to ask what experiences people here have had with these cards.
As much as I hate the whole credit industry, I need to start rebuilding my credit since student loans destroyed my score. I'm looking for a no/very low annual fee, reports to the credit reporting agencies as unsecured, ability to deposit to increase the line of credit, unsecures after a reasonable amount of time and no "gotcha" kind of fees. I know I probably won't be able to find one that hits all those notes but my googling has revealed a lot of conflicting or outdated information so I want to ask what experiences people here have had with these cards.
I shopped credit unions for a good one. I was already a member of a different credit union, but this one had a nicer deal, so then I had two credit unions. It was painless.
posted by hypersloth at 10:05 AM on April 15, 2012
posted by hypersloth at 10:05 AM on April 15, 2012
As above, I would suggest a credit union, but don't know of any that offer that. I did one with Wells Fargo and I had a really good experience with them. I managed it so well, that even before the 12 months, they offered me a regular credit card. I used it and paid it off each month and never went over half the amount mid month where they track your balance for each statement. Good luck!
posted by i_wear_boots at 11:03 AM on April 15, 2012
posted by i_wear_boots at 11:03 AM on April 15, 2012
USAA is absolutely non-scummy. They offer a secured card that is 9.9% APR, tied to the Prime Rate, with a $35 annual fee and no application fee. You can choose either a MasterCard or an American Express card. The money you put in is in a CD, which you earn some interest on. The CD is has a fixed 2-year term with a minimum deposit of $250. You can add money at any time.
I don't know if they report it as unsecured (since it is not unsecured) -- if that's an iffy thing, then they probably don't do it.
You don't have to have a military background to get this level of membership (you are "other individuals" on this page).
posted by Houstonian at 11:12 AM on April 15, 2012 [7 favorites]
I don't know if they report it as unsecured (since it is not unsecured) -- if that's an iffy thing, then they probably don't do it.
You don't have to have a military background to get this level of membership (you are "other individuals" on this page).
posted by Houstonian at 11:12 AM on April 15, 2012 [7 favorites]
I just saw that you wanted personal experiences. I do not have a USAA secured card, but I have a regular credit card, money market account, mutual funds, mortgage, and auto insurance with them. I'm a happy, happy customer of theirs as is most of my family. It's hard to find people with negative USAA experiences. The level of honesty and customer service will surprise you.
posted by Houstonian at 11:17 AM on April 15, 2012 [2 favorites]
posted by Houstonian at 11:17 AM on April 15, 2012 [2 favorites]
If you're not eligible for a credit union or USAA (I wasn't), I'll throw out a bone for the secured card I use. (Ugh I can't believe I'm admitting on the internet that I have such shitty credit.)
It's Capital One's secured card. It has a pathetically tiny limit, I think half of which had to be paid by deposit. I've had it for six months or so, and my credit score has gone up a modest amount. There was no annual fee for the first year (I think....? Either way it was worth paying to improve my dismal credit). I have not experienced any scammy behavior from them as of yet.
I'm thinking of applying for a big girl pants credit card at the one year anniversary. I've not heard great things about Capital One extending credit limits or auto-approving a non-secured card, though it could be because all the reviews online were from deadbeats who didn't pay their bills.
I charge a nominal amount every month (a metrocard here and there, or dinner out, or a minor shopping spree that I could actually afford) and pay the whole thing off. Has worked like a champ.
posted by Sara C. at 11:35 AM on April 15, 2012
It's Capital One's secured card. It has a pathetically tiny limit, I think half of which had to be paid by deposit. I've had it for six months or so, and my credit score has gone up a modest amount. There was no annual fee for the first year (I think....? Either way it was worth paying to improve my dismal credit). I have not experienced any scammy behavior from them as of yet.
I'm thinking of applying for a big girl pants credit card at the one year anniversary. I've not heard great things about Capital One extending credit limits or auto-approving a non-secured card, though it could be because all the reviews online were from deadbeats who didn't pay their bills.
I charge a nominal amount every month (a metrocard here and there, or dinner out, or a minor shopping spree that I could actually afford) and pay the whole thing off. Has worked like a champ.
posted by Sara C. at 11:35 AM on April 15, 2012
I don't have any specific card recommendations, but Credit Karma might help shed some light.
posted by yoga at 1:19 PM on April 15, 2012
posted by yoga at 1:19 PM on April 15, 2012
Have you ever been to CreditBoards? They have a lot of people with a staggering amount of advice. I've never had a secured credit card, but I've heard great things about USAA and love my credit unions, so.
posted by SMPA at 2:40 PM on April 15, 2012
posted by SMPA at 2:40 PM on April 15, 2012
I am here (as usual) to recommend USAA, if that's an available option for you.
posted by InsanePenguin at 3:05 PM on April 15, 2012
posted by InsanePenguin at 3:05 PM on April 15, 2012
Response by poster: Thanks for the answers all, it looks like USAA might be the way to go if I can qualify. I've been to Creditboards but the sheer amount of information there is kinda overwhelming; I've seen a good amount of recommendations for USAA there as well.
posted by spungfoo at 4:06 PM on April 15, 2012
posted by spungfoo at 4:06 PM on April 15, 2012
nerdwallet.com seems to do recommendations for this sort of thing.
posted by jenfullmoon at 8:32 PM on April 15, 2012
posted by jenfullmoon at 8:32 PM on April 15, 2012
This thread is closed to new comments.
posted by two lights above the sea at 10:03 AM on April 15, 2012 [1 favorite]