$100 Deposit Secured Credit Card

Are you looking to learn how to get a $100 Deposit Secured Credit Card with a hassle-free procedure? We’ve got you covered.

The easiest way to improve your credit is to get a secured credit card with a low deposit.

Security deposits are required to approve secured credit cards. The cards have the same functionality as a traditional credit card. The convenience of credit allows you to make purchases online and in person while paying bills.

The security deposit may prevent a lender from running a credit check and rejecting your application because of it.

This guide will provide all the details you need about $100 deposit secured credit cards, how they work, and how to obtain one. 

Let’s dive in.

What is A Secured Credit Card?

You have to deposit cash when you open an account with a secured credit card. Credit card issuers take the money from the deposit if you don’t pay your bill. This reduces the risk for the issuer. It is for that reason that people with bad or no credit can use these cards.

With a credit card, your credit limit matches the deposit you make; for instance, depositing $200 sets your limit at $200. Utilizing credit cards responsibly can assist in building a strong credit score, enabling you to apply for unsecured cards without requiring a deposit.

You can upgrade your secured card account directly to an unsecured card with some of the best-secured cards. Those who do not offer upgrades will have to apply elsewhere and then close their secured cards. 

How Do Secured Credit Cards Work?

Secured cards work the same way as regular credit cards in that when you make a purchase, the money is charged against your credit line. The deposit isn’t like a debit card, where you pull funds out as you need them. The lender uses the security only as collateral.

Maintaining a balance requires making a minimum payment every month. When you take over a balance that isn’t paid off in full each month, you will pay interest on it.

Each lender may have a different method of working with secured credit cards. The amount of your deposit usually determines your credit limit. The maximum you can spend is $200 if you deposit $200. You can earn higher credit limits on some cards by making on-time payments.

Top $100 Deposit Secured Credit Card

Capital One Platinum Secured Credit Card

There is only one semi-secured credit card available in the industry, the Capital One Platinum Secured Credit Card. A secured Mastercard can be obtained with a deposit that’s lower than its $200 credit line, unlike a traditional secured card. 

You may be required to deposit $49, $99, or $200, depending on your income and credit history.

A credit line increase from Capital One is automatically considered within six months of reporting to the three major credit bureaus.

It’s important to note that you won’t know your minimum deposit amount until you’ve been approved, and you might not qualify for one of the lower deposit amounts. This card does not offer rewards, but it has no annual fee, which can make it an attractive choice for those who want a no-fee card.

The Credit Card has a high 30.74% (Variable) APR, so it’s only worth choosing if you plan to pay the balance off on a regular basis.

Capital One Platinum Secured Credit Card Benefits

• There are no hidden fees or annual fees. Get approved in seconds.
• Do you want to build your credit? It is important to use the Capital One Platinum Secured card responsibly.
• Start with a $49 refundable security deposit to get a $200 credit limit.
• If you use your card responsibly, such as making on-time payments, your security deposit may be refunded as a statement credit
• Your credit line will automatically be raised in just 6 months without additional deposits.
• Ensure you’re not liable for unauthorized charges with $0 Fraud Liability.

Capital One Platinum Secured Credit Card Pros and Cons

Pros

• A security deposit of $49 is required
• There is no annual fee
• There are no foreign transaction fees
• Six-month automatic review of credit lines

Cons

• The cost of interest can be high if the APR is high
• There is no rewards program
• Deposits are not guaranteed to be lower

Self Visa® Credit Card

Applicants must have a Self Credit Builder savings account to receive the Self Visa® Credit Card.

This is a basic card that’s designed to help you build credit without rewards or sign-up bonuses. For a Self Visa card, you need to deposit at least $100 as a security deposit once you’ve had your Self Credit Builder account for at least three months.

Self-reporting allows you to build your credit profile by using your payment history responsibly.

Self Visa® Credit Card Benefits

• There is no annual fee.
• No credit check is required to apply.
• Looking for help building or rebuilding your credit? Three on-time payments result in a 48-point improvement for more than two-thirds of cardholders.
• We will consider increasing your credit line without any additional deposit after 6 months.
• You can access your FICO credit score for free to monitor your credit progress.
• Maintains a credit history by reporting to each of the three major credit bureaus on a monthly basis.
• You can make purchases with Apple Pay, Samsung Pay, or Google Pay by adding them to your mobile wallet.
• A refundable security deposit of as low as $300 is required to secure your credit line.
• You can apply from your mobile device in less than five minutes.
• Provide flexible payment due dates that suit your payment schedule.
• The security deposit can now be funded over 60 days in smaller installments.
• OpenSky Secured Credit Card Has Improved Credit For Over 1.2 Million Cardholders

Self Visa® Credit Card Pros and Cons

Pros

• There is no credit check
• Your credit limit is under your control
• All three credit bureaus are notified

Cons

• Annual fee
• An account with Self Credit Builder is required
• There is no rewards program

First Latitude Secured MasterCard

With First Latitude Select Mastercard® Secured Credit Card, your credit score isn’t considered when you qualify since it is a secured card. The credit line you can receive depends on your deposit and can range from $100 – $2,000 once you are qualified.

Additionally, your payment history is reported to all three credit bureaus, making it easy to start building credit. If you pay off your balance on time every month, your credit score should gradually improve.

Thanks to its intuitive interface, First Latitude’s mobile app allows you to easily manage your account, track your spending, and automate payments.

First Latitude Secured MasterCard Benefits

• Payments earn 1% Cash Back Rewards
• Your security deposit will determine the amount of your fully refundable credit line – from $100 to $2000
• You can build your credit score. Your credit score is reported to all 3 credit bureaus
• There is no minimum credit score requirement!
• Your account will be opened once the $19.95 Program Fee and Security Deposit are paid.
• People with low or no credit scores can establish credit through secured cards
• Credit scores increase for cardholders who pay their credit card bills on time and keep their balance low

First Latitude Secured MasterCard Pros and Cons

Pros

• It is possible to get approved for this card even if you have bad credit
• By paying on time, you can rebuild your credit

cons

• Transaction fees for foreign transactions
• There is no path to an unsecured credit card.

Required Documents For $100 Deposit Secured Credit Card

 The following information will generally be required for $100 Deposit Secured Credit Card:

• The full name
• Birthdate
• Taxpayer identification number or Social Security number
• Status of citizenship
• The address
• Contact information
• Details of employment and income
• The cost of housing

Application Process For $100 Deposit Secured Credit Card

A secured credit card could be a good solution if you are new to credit or trying to rebuild your credit after making some mistakes. Here are some steps you should follow before you apply for a $100 Deposit Secured Credit Card to make sure it is the right move for you and to increase your chances of getting approved.

Credit Check

If your situation qualifies, a secured credit card may be available, removing the need to make an upfront deposit. Generally, consumers with a FICO® Score of 580 to 669 are eligible for unsecured credit options, especially if they are new to credit. A student credit card may also be a good option for college students.

Do Research

If you have ruled out unsecured cards, using a secured credit card is an excellent alternative.

Consider as many cards as possible to improve your chances of getting the best offer.

Features of Secured Cards

You should review these features as soon as you have gathered information about a few secured credit cards:

• The credit limit on secured cards is usually equal to your deposit, with most requiring a deposit of $200 or more. Your creditworthiness may determine whether you are offered a card that requires a smaller deposit.
• Some major card issuers may refund your deposit after you demonstrate responsible credit behavior for six to twelve months. After receiving your deposit refund, your card will be converted to an unsecured card. The deposit may be held by other issuers until the account is closed, which can negatively affect your credit rating.
• Many secured credit cards allow you to redeem your everyday purchases for rewards. When working on improving your credit, a low credit limit can be a nice bonus, as you can earn cash back, points, and miles.
• Major card issuers often offer Secured credit cards without an annual fee, but some may charge. It’s best to avoid these fees as much as possible, even if they are low.
• The annual percentage rate (APR) on some secured credit cards is higher than on others. Your balance may not be an issue if you pay it off on time each month. Try to avoid high-interest cards if you think you will occasionally carry a balance.

Application Submission

Upon choosing a card, locate the issuer’s website and complete the application. You may also be required to enter your highest level of education and whether you have a bank account. The decision you receive after submitting your application usually happens within seconds.

Make A Deposit

Your security deposit must be funded before you can get your card if you are approved. You may be required to transfer the deposit from your bank account to the card issuer. There are others, however, that accept money orders, checks, and electronic funds transfers as well.

Who Should Get $100 Deposit Secured Credit Card?

Credit cards with secured features are most suitable for consumers with low credit scores or poor credit histories, as well as those with no credit history or limited credit histories. When it comes to secured credit cards, it is incredibly important to use them responsibly in order to build or rebuild your credit. Keeping your credit limit low and paying at least the minimum every month are both important.

Alternatives To $100 Deposit Secured Credit Card

Unsecured Cards

Several companies offer unsecured credit cards for people with bad credit. As a result, these “subprime specialist” cards often charge high fees that make up a much greater portion of the deposit—annual fees up to $99, application fees, “activation” and “processing” fees, as well as monthly maintenance charges. A secured card requires a deposit, but those fees cannot be refunded.

Prepaid Debit Cards

The convenience of prepaid debit cards offers a safer alternative to carrying cash, but they don’t build credit. A prepaid debit card works by loading money onto it and then using that money for purchases. The credit score is not affected since you are not borrowing money.

The Credit Builder Loan

Credit unions and community banks mainly offer loans as a means of building a good payment history. A loan isn’t given to you directly. In exchange, you repay the loan via monthly installments while the money is held in a savings account on your behalf. When you finish repaying the loan, the money is released to you, and your credit report shows that you have paid off the loan. 

Pros And Cons of $100 Deposit Secured Credit Card

Pros

• A secured card gives you access to credit when a merchant cannot accept cash, for example, when you reserve a hotel room or rent a car.
• The application requirements for a secured card tend to be more forgiving and accessible to people with low credit scores. Some applications even do not require a credit check.
• A secured card can help you keep track of your spending since you can usually spend up to the amount of your security deposit.
• A refundable deposit can often be obtained after demonstrating responsible card use over a period of time.

Cons

• The fees associated with opening a secured card can decrease the available credit you can utilize.

• The APR on many secured cards is higher than average, so not paying your bill on time and in full can be costly.
• Secured cards frequently lack amenities like welcome offers, and introductory APR offers, or other long-term perks that enhance value over time.

How To Build Credit With $100 Deposit Secured Credit Card?

You can build a credit history by using your credit card responsibly as long as it is reported to the three major consumer credit bureaus. The following tips will help you build credit:

 On-time Payments

Keeping your payment records up-to-date is essential for improving your credit score. At least pay the minimum amount, even if you can’t pay the full amount. It is almost impossible to improve your credit score if you make late payments.

If you forget your due date, you should make your payment as soon as possible because most issuers do not report late payments to the bureaus until you are at least 30 days behind. If possible, set up automatic payments to make on-time payments and avoid late fees and interest (most issuers offer this option).

 Reduce Utilization

You should also be aware of how much of your available credit you are using. A credit card that is close to being maxed out will make you look riskier to lenders, resulting in lower credit scores. As a general rule, use 30 percent or less of your available credit. Try never to carry a balance higher than $60 on a $200 credit card.

 Don’t Apply For Too Many Cards

It is also advisable to refrain from applying for new credit too often, in addition to considering payment history and utilization. An applicant’s credit report is checked when a prospective lender applies for credit, resulting in a hard inquiry. You may lose a few points for each hard inquiry. Opening new cards also reduces your average age of accounts. Your credit score improves when you have fewer recent inquiries and longer average account ages.

 Do Credit Check

Check your credit report carefully to ensure you don’t have any old debts in collections or errors. You can build credit by using a secured credit card, but you will also need to deal with blemishes on your credit report. Utilize your issuer’s credit scoring and credit-monitoring tools, too, as this will help you catch missed payments and suspicious activity on your credit reports early.

Things To Consider Before Applying For $100 Deposit Secured Credit Card

When selecting a secured credit card for your financial needs, it’s important to look for a few signs:

The fee

 An annual fee, a transaction fee, or an additional fee may be charged with some credit cards. Make sure there are no hidden fees associated with the secured credit card that interests you. The benefits of the card should outweigh the fees.

Credit Bureau Reporting

 The major credit bureaus do not report all secured credit card activity, so you won’t be able to build your credit with a card like this. For the best credit-building results, make sure you find a secured credit card that reports your activity and on-time payments.

The Rewards

 The features and benefits offered by a credit card may not be the same for everyone, so you should find one that appeals to your spending habits and offers features you will enjoy.

Check with Your Credit Union

Credit unions, being not-for-profit organizations, often offer lower interest rates and fewer fees than banks. If you’re thinking about applying for a secured credit card elsewhere, it’s wise to contact your credit union first.

What Else Should You Consider When Choosing A $100 Deposit Secured Credit Card?

You should keep other factors in mind when choosing your secured credit card, aside from the size of the deposit. Here are some things to consider:

• Credit card issuers that offer prequalification will check your credit report to see if you have been preapproved before making a hard inquiry. You will be able to see this on your credit report for two years after a hard inquiry has been made, which hurts your credit score.
• A refundable deposit is available. Some card issuers will refund your deposit when you pay your credit card bill on time for a certain period of time.
• This is the purchase annual percentage rate (APR). Carrying a balance will result in interest payments. Compare APRs and find the one that is the best for you.
• The annual percentage rate for balance transfers. In this case, you will pay interest on balance transfers that carry over from a previous billing cycle. It is important to find the lowest APR possible.
• Limits on credit. It is possible to start with a very low credit limit on secured credit cards. Choose the highest available credit limit from the available ones. If you make on-time payments, it is also a good idea to look for issuers who offer automatic credit limit increases.
• The credit score range that is eligible. Credit cards are usually designed for a specific credit score range. To ensure a card is a good fit for your credit score, check what range it serves.
• Spending with certain credit cards can earn rewards (such as cashback or points), which increase a card’s value.
• There is a fraud liability. Is the card fraud-protected? You should choose a credit card that does not hold you liable for fraudulent purchases.
• Here is a list of benefits and perks. A card may also offer additional benefits such as insurance for rental cars, credit monitoring, flight coverage, and emergency assistance.

Can I Get A Credit Card Without A Deposit?

There are a large number of unsecured credit cards on the market which do not require a security deposit. To encourage timely payments, issuers grant unsecured cards based on your sense of responsibility and the fear of potential consequences rather than requiring collateral.

Poor, unsecured credit cards usually have high APRs and fees. They also offer few perks, especially when compared with secured cards. A subprime unsecured credit card typically has a low starting credit limit, usually less than $300. A lot of companies charge extra charges and have high annual fees as well. 

Can You Increase A Secured Card’s Credit Limit?

Your card’s deposit rules and the card’s features will determine this.

Security deposits can usually be added to secured credit cards to increase credit limits. A processing fee of up to $49 is often associated with this.

Other card issuers may temporarily increase your credit limit. For instance, your Capital One card’s credit limit can be increased within 80 days after you activate it.

What is The Refund Policy For A $100 Deposit Secured Credit Card?

Your security deposit will be fully refunded if you close your account or upgrade to an unsecured account.

When your account is closed with outstanding debts or charges due, you will not receive a refund. You will instead be reimbursed for your debts using the deposit. In the event there is any money left over after paying off those debts, the bank will return it to you.

A paper check will usually be sent to you by the bank that issued your low deposit credit card. Once your account is closed, your check usually arrives within seven to ten business days.

Your bank may be able to refund your deposit to a linked checking or savings account. In those cases, it may take two to three business days to receive your refund.

Can You Get Denied For A $100 Deposit Secured Credit Card?

Securing a credit card is less of a hassle if you have a spotty or nonexistent credit history. However, lenders can still deny you if you are deemed too risky.

Applicants with low incomes or bankruptcy filings are especially likely to be rejected.

FAQs

Conclusion

The process of getting a secured credit card is easier than that of obtaining an unsecured credit card. As a result of the security deposit required, the lender has little to no risk, so secured cards are available to people with damaged credit or no credit at all. You build credit through the process in the same way that an unsecured card does. The secured credit card is an excellent choice for frugal, subprime consumers. They will be able to build or rebuild credit, receive perks, and create a path toward an unsecured credit card.