What Are the Best Credit Unions That Offer Secured Credit Cards?

Secured credit cards are a great way for people with no credit history or poor credit to establish or rebuild their credit. If you are looking for a secured credit card,credit unionscan be a great option. In this article, we will discuss the best credit unions that offersecured credit cards.

What is a secured credit card?

A secured credit card is a type of credit card that requires a security deposit to open an account. This security deposit acts as collateral and reduces the risk for the credit card issuer. Because of this reduced risk, secured credit cards are easier to qualify for than unsecured credit cards.

The security deposit amount typically determines the credit limit of the card. For example, if you deposit $500, your credit limit will be $500. You can use a secured credit card just like any other credit card, but if you fail to make payments, the issuer can use your security deposit to cover the outstanding balance.

Best credit unions that offer secured credit cards

1. Navy Federal Credit Union

Navy Federal Credit Union offers a secured credit card with a low variable APR of 9.99% and no annual fee. The security deposit required is as low as $200, and the credit limit can be up to $50,000. This card also comes with perks like travel and emergency assistance services.

2. Alliant Credit Union

Alliant Credit Union offers a secured credit card with a low variable APR of 17.99% and no annual fee. The security deposit required is as low as $300, and the credit limit can be up to $25,000. This card also comes with perks like extended warranty coverage and price protection.

3. DCU Credit Union

DCU Credit Union offers a secured credit card with a low variable APR of 13.75% and no annual fee. The security deposit required is as low as $500, and the credit limit can be up to $5,000. This card also comes with perks like travel accident insurance and rental car collision damage waiver.

Tips for applying for a secured credit card

When applying for a secured credit card, there are a few things you should keep in mind:

1. Choose a credit union with a good reputation andlow fees.

2. Make sure the credit union reports to all three major credit bureaus (Experian, Equifax, and TransUnion) to establish or rebuild your credit.

3. Make sure you can afford the security deposit and monthly payments.

4. Use the card responsibly and pay on time to build good credit.

Final thoughts

Secured credit cards can be a great tool for establishing or rebuilding credit. Credit unions offer some of the best secured credit cards with low fees and competitive interest rates. When applying for a secured credit card, choose a reputable credit union, make sure you can afford the security deposit, and use the card responsibly. With time and responsible use, you can improve your credit score and qualify for better credit cards and loans.