Best secured credit cards credit cards with no credit check

With most of the emphasis in the credit card space being devoted to increasing your credit score, and getting a card with the lowest rate and/or best rewards, an entire market segment is often ignored–people with poor credit, or no credit at all. For this very large segment of consumers, the focus needs to be on finding the best secured credit cards. They represent a starting point, a place to begin building or rebuilding your credit rating.

According to Experian, one of the three major credit bureaus, 66% of consumers have a credit score deemed to be “good” or better. That translates into a credit score of 670 or higher, which will generally be high enough to get traditional credit cards.

But that also means that a full 34% of consumers have a credit score that’s considered fair or poor. That translates into a credit score below 670 (or below 580 in the case of poor credit).

They also automatically review your account to see if they can move you over to a card with no security deposit. Ultimately, Discover it® Secured is in the top spot because the entire arrangement of the card is oriented toward improving your credit situation, and making the journey to that destination more comfortable along the way. Runner-up: First Premier Bank Secured Credit Card

First Premier Bank Secured Credit Card took second place status on a single–but very important–criteria. The card enables you to gradually increase your credit limit from $200 to up to $5,000. Equally important, the credit line increases are unsecured. That means your credit limit can grow without your needing to increase your security deposit.

With this card you can build your credit line to $5,000. You’ll be eligible for consideration of an unsecured credit limit increase once your account has been open for at least 13 months. However, there is a fee to increase the line, equal to 25% of the amount of the increase. If the line increases by $200, the fee will be $50. It’s a steep price to pay, but it does give you the ability to begin building your unsecured credit through the card.

The specific amount of the security deposit requirement will depend on your creditworthiness. Obviously, the better your credit score, the lower the deposit requirement will be. And you can increase your credit line at any time, by increasing your deposit. But Capital One also begins increasing your credit limit as early as after just five on-time payments.

In some respects, secured credit cards function just like ordinary credit cards. But since they are actually credit builder cards, you’ll have to be prepared to handle the arrangement a bit differently. After all, secured credit cards come with more limitations than traditional cards. You have to be aware of those limitations when you’re shopping for a card.

• You may want to add a second secured credit card: If a positive payment history on one secured credit card will improve your credit score, the improvement will be multiplied by adding an additional card. Just make sure you wait at least 6 months or a year before adding the second card. You don’t want to take on more debt than you can comfortably handle.

Secured credit cards don’t compare with traditional unsecured cards, so you have to change your perspective a bit when shopping for one. The primary purpose of these cards is to enable you to either build credit, or rebuild bad credit. And in that capacity, they work as planned. Even though they have low credit limits, and require security, as long as you make your payments on time, you’ll be building a good credit reference.

I opted for a Citi Secured Credit card in February, 2010. This is because I did not have any credit history and wanted to build it.Until now, I paid a total of $58 as annual fees, and got a check for $20 in January, 2011, as interest on my CD amount. By August, 2010, the Credit Union of which I am a member, introduced a new credit card and I applied. I was approved for it with a limit of $1000. I applied in December, 2010 for a discovery credit card; as expected (I am told it is very hard to get a Discovery credit card approved), I was declined. Recently, in July, 2011, I applied for a Chase Visa credit card and got it approved, the limit is $1500. Yesterday (9th August, 2011) I got a letter from Citibank saying that after my 18-month period is over, my secured credit card will be converted into an unsecured/normal credit card and my CD amount with interest will be sent back to me. I called them and the customer service guy told that my new unsecured card will have no annual fees. So I think, Citi secured credit card is not that bad an option. I believer that I got the other two credit cards because I started with a Citi secured card to build my credit history.