Best bank for Secured credit card?

[Ladyhawke]

We basically use a debit/ATM card for any purchases that require a credit card. So, I'm pretty sure we don't have any good credit built up. For our upcoming Disney trip, we will need a real credit card, not an debit credit card, to rent a car. Most of the places that allow a debit card have higher rates or they hold a hefty deposit on the credit card in order to rent a car.

We're interested in getting a secured credit card even though it means putting a deposit into a savings account in which the bank uses for the secured card. However, we probably will only use the credit card a few times a year, so we don't want to pay a lot of annual fees just to have the card.

Does anyone have suggestions of which banks to get a secured credit card?

 

[gncntry]

Have you checked with your bank to see if they offer one? If not check this list, http://www.bankrate.com/credit-cards/secured-cards.aspx

 

[ksh1111]

Join a local Credit Union, many of them will offer a no or very low fee secured card. After a year or so you will most likely be able to get an unsecured card with them.

 

[set1208]

I had such terrible credit that I couldn't get a regular card. I got my first secured card from Capitol One and i love it. After 6 months I was able to get a regular card. id highly recommend them.

 

[charming23]

I second going with Capital One. I have had my card with them for 2 years and after one year of secured credit I was able to switch to a real card.

 

[kaytieeldr]

If you really don't want a credit card and are only doing this for the rental car, rent from Alamo instead. They put a hold of the rental amount on your account during the rental period, but once you return the car the money's available to you again.

If you want to build a credit history, a secured card might be the right solution, but first try applying for a standard card.

 

[Ladyhawke]

Have you checked with your bank to see if they offer one? If not check this list, http://www.bankrate.com/credit-cards/secured-cards.aspx

No, our bank is already charging us $4/mo as we never keep the limited balance they require for any free banking. It's way more than we usually keep in the account. We are hoping to find some place with less fees overall.

 

[Ladyhawke]

Join a local Credit Union, many of them will offer a no or very low fee secured card. After a year or so you will most likely be able to get an unsecured card with them.

Thanks. We have a credit union we can join. That might be the best route.

 

[Ladyhawke]

If you really don't want a credit card and are only doing this for the rental car, rent from Alamo instead. They put a hold of the rental amount on your account during the rental period, but once you return the car the money's available to you again.

The rates in this area for Alamo or Hertz, which are two places that do accept debit cards, are $15 - $20 more per day (including their higher daily insurance rates) for a rental than Enterprise, which only takes credit cards. And that is not even the rate for a weekly rental which we will need at least once. Since we will be renting a car about 4 times by the end of the year, that could add up to about $200 more for a debit card rental. I'd rather put that extra money in the bank towards secured credit card than just give it to a rental company.

 

[Crystal824]

I would try Capital One or a credit union. If your bank is charging you a fee, you might be able to find a CU that won't charge a fee for your checking account. If you want to rebuild your credit, use your secured card every single month for a purchase you would make anyway, and pay it in full every single month. After 3-6 months, you will likely quality for a normal (unsecured) credit card. If you don't use your credit, you won't be able to build up your credit score.

 

[set1208]

If you're going to get a secured card, make sure that the bank reports your activity on your credit report so you can build your credit. Capitol One definitely reports.

 

[Ladyhawke]

If you want to rebuild your credit, use your secured card every single month for a purchase you would make anyway, and pay it in full every single month. After 3-6 months, you will likely quality for a normal (unsecured) credit card. If you don't use your credit, you won't be able to build up your credit score.

Thanks. I hadn't even looked into that part as I wasn't sure we'd be able to find a secured credit card at a good rate. That is step 2 in the process.