4 Secured Credit Cards That Offer Rewards

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Consumers with poor or nonexistent credit should consider secured credit cards for their spending and credit-building needs. Secured cards have looser credit restrictions and require a security deposit up front to open, but otherwise they operate like traditional credit cards.

With secured cards, your poor or limited credit history won’t necessarily keep you from earning rewards. While most secured credit cards are no-frills affairs, some do offer spending incentives.

Here are four secured credit cards with real rewards.

1. SKYPASS Visa Secured Card

Rewards: One mile for every dollar spent on eligible purchases.

Sign-Up Bonus: 5,000 SKYPASS bonus miles upon your first purchase.

Annual Fee: $50

APR:Variable 17.24% on purchases and balance transfers.

Why We Picked It: Cardholders can earn miles with select airlines.

Benefits: Every purchase earns one SKYPASS mile per dollar. You’ll get 5,000 bonus miles right out of the gate and 1,000 bonus miles every year upon renewal. Points can be redeemed for flights and upgrades with SkyTeam partners—including Delta, Korean Air, and Air France—or for other travel expenses.

Drawbacks: There’s a $50 annual fee, and miles are limited to twenty participating airlines.

2. Best Western Rewards Secured Mastercard

Rewards: Thirteen points for every dollar spent on Best Western stays; two points for every dollar spent on other purchases.

Sign-Up Bonus: 5,000 bonus points upon your first purchase.

Annual Fee: $29

APR:Variable 21.99% on purchases and balance transfers.

Why We Picked It: Frequent Best Western guests can earn points for future reservations and more.

Benefits: Cardholders earn thirteen points per dollar on Best Western stays, with ten points through the Best Western Rewards program and three points for using your card. All other purchases earn double points. Points can be redeemed for Best Western stays, gift cards, merchandise, and more.

Drawbacks: If you aren’t a loyal Best Western guest, this card isn’t for you. 

3. Navy Federal nRewards Secured Credit Card

Rewards: One point per dollar spent on all purchases.

Sign-Up Bonus: None

Annual Fee: $0

APR:Variable 9.99% to 18% on purchases and balance transfers.

Why We Picked It: Navy Federal members can earn points for goodies.

Benefits: All purchases earn one point. Points can be redeemed for gift cards or merchandise.

Drawbacks: You must be a Navy Federal member to access this card. Points expire after four years.

4. AeroMexico Visa Secured Card

Rewards: Two miles for every dollar spent on gas and groceries; one mile for every dollar spent on everything else.

Sign-Up Bonus: 5,000 bonus miles and a companion flight certificate with your first purchase.

Annual Fee: $0 the first year, then $25.

APR: Variable 23.99% on purchases and balance transfers.

Why We Picked It: Frequent AeroMexico flyers can enjoy the miles earned with this card.

Benefits: Gas and grocery purchases earn double miles, and all other purchase earn single miles. Your first purchase earns 5,000 bonus miles and a companion certificate. Plus, you’ll get an additional $99 companion certificate each year you renew.

Drawbacks: If you don’t fly AeroMexico, you won’t see much value in this card.

Choosing a Secured Credit Card with Rewards

Because secured credit cards are primarily intended for consumers with poor or nonexistent credit, building credit should be your primary goal. Rewards should be a secondary concern.

Pay close attention to the fees and APR associated with any cards you’re considering. Annual fees and interest can eat into the overall value of earned rewards.

You’ll also want to evaluate security deposit policies. Many secured credit cards can be opened with as little as $200, and the credit limit will equal your deposit. Some cards may increase your credit limit without requiring an additional deposit after a period of timely payments and responsible card use.

When it comes to rewards, choose a card that rewards your specific spending habits and provides redemption options you’ll actually use.

What Credit Is Required to Get a Secured Credit Card?

Secured credit cards are generally available to consumers with poor or nonexistent credit history, but that doesn’t mean approval is guaranteed. To increase your chances of approval, you should check your credit score before you apply to make sure you meet the requirements. You can check your credit report for free at Credit.com.

Image: istock

At publishing time, the Discover it Secured Credit Card is offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

Source: credit.com

Jasper Mastercard® Review

Advertiser Disclosure: This post includes references to offers from our partners. We receive compensation when you click on links to those products. However, the opinions expressed here are ours alone and at no time has the editorial content been provided, reviewed, or approved by any issuer.

The Jasper Mastercard® (Jasper Card) is an unsecured credit card designed for first-time credit card users and those looking to build credit.

Although it’s not technically a student credit card, the fact that it doesn’t require a credit history for approval — thanks to an innovative underwriting process — and its availability for foreign nationals in the United States on student or work visas make it appropriate for those pursuing higher degrees.

And it’s an excellent alternative to secured credit cards, which require what’s effectively a down payment as a condition of use.

Jasper isn’t perfect. It lacks an introductory APR promotion, for example. But it’s an above-average choice for anyone in the process of building or rebuilding credit.

Key Features

The Jasper Mastercard’s most important features include:

Referral Bonus

For each friend you successfully refer to Jasper, you’ll earn an extra 0.5% cash back for a full year, up to 6% total cash back (5% above the 1% cash-back baseline).

Underwriting Process

Jasper uses a nontraditional underwriting process that considers noncredit factors, including sufficient proof of income, to produce a more holistic gauge of applicant risk. Not having a credit score or having limited credit will not necessarily disqualify your application from consideration.

However, if you have good credit, your application will be considered using common credit factors.

Credit Limit

Jasper offers credit limits up to $5,000 with no security deposit required. Your actual credit limit will depend on your income, creditworthiness, and other factors.

Earning and Redeeming Rewards

All eligible Jasper purchases earn 1% cash back. Cash back doesn’t expire as long as your account remains open and in good standing and is automatically applied to your account balance at the end of each statement cycle.

Important Fees

This card has no annual fee. Other fees may apply, including a foreign transaction fee for purchases made outside the United States or denominated in foreign currencies.

Card Benefits

The Jasper Mastercard has a number of perks and benefits underwritten by Mastercard, including:

  • Satisfaction Guarantee for Purchases. Select Jasper Mastercard purchases — those made in full with the card — qualify for Mastercard’s satisfaction guarantee protection for 60 days from the date of purchase.
  • Extended Warranty on Select Purchases. Eligible purchases also qualify for a one-year extended warranty, for total warranty coverage (including the original manufacturer’s warranty) of 24 months or less.
  • Price Protection on Select Purchases. Jasper is one of the few remaining credit cards offering price protection coverage on eligible items for 60 days from purchase. If you find a lower price on an identical item during the coverage period, this benefit may refund the difference. Note that this benefit is subject to change or revocation at any time.
  • Purchase Assurance. This benefit provides reimbursement for covered theft, loss, or damage on eligible items for up to 90 days from purchase, subject to policy limits and exclusions.
  • Mastercard Travel Benefits. Jasper’s comprehensive Mastercard-backed travel benefits include a car rental loss and damage waiver, lost or damaged luggage protection, travel accident insurance, trip interruption and cancellation insurance, and more.
  • Cellphone Protection. Enjoy reimbursement for covered damages to your eligible cellular telephone device, subject to limitations and deductibles.

Credit Required

Jasper is appropriate for applicants with fair to excellent credit. Applicants with limited or nonexistent credit may qualify for approval, depending on income and other underwriting factors.

Jasper reports account information, including payment history, to the three major credit bureaus, so your use of the card will be reflected on your future credit score.

Advantages

The Jasper Mastercard is an effective product for building and rebuilding credit. It has some other notable advantages as well.

  1. No Annual Fee. This card doesn’t charge an annual fee. That’s welcome news for frugal cardholders who can’t be bothered to pay a recurring levy.
  2. No Credit History Required for Approval. Jasper doesn’t require new credit applicants to demonstrate any particular length of credit history — or any credit history at all if their income and other underwriting factors qualify them for approval. This makes Jasper a fantastic first credit card option for younger cardholders.
  3. No Security Deposit Required. Unlike many other cards for people with limited or fair credit, this card doesn’t require a security deposit as a condition of account opening.
  4. 1% Cash Back on All Eligible Purchases. Jasper earns 1% cash back on all eligible purchases. That’s a nice rate of return for an entry-level card, as many direct competitors lack rewards programs at all.
  5. Nice Referral Bonus. Each successful referral earns 0.5% bonus cash back for a full year, up to 6% cash back (5% above the base rate).
  6. Impressive Mastercard Benefits, Including Price Protection. Jasper Mastercard has an impressive lineup of premium Mastercard benefits, including basic travel insurance and price protection. It’s one of the few remaining credit cards offering price protection to new account holders, in fact.
  7. Regular Credit Bureau Reporting. Jasper regularly reports account activity to all three major consumer credit reporting bureaus. This is good news for cardholders eager to build credit and improve their credit scores with a pattern of timely repayment and responsible credit use.
  8. Credit Limit Up to $5,000. Jasper offers credit limits as high as $5,000 to qualified cardholders. This is higher than many competing cards.

Disadvantages

Jasper isn’t perfect. Its drawbacks include a less-generous rewards program and no introductory APR promotion.

  1. Cash Back Capped at 1%. There’s no way to earn cash back on Jasper purchases at a rate greater than 1%. This is a drawback for cardholders who’d like to earn a high return on everyday spending (and who qualify for more generous cash back cards).
  2. No Introductory APR Promotion. Jasper has no introductory interest rates (APR) promotion, so it’s not appropriate for applicants looking to cheaply finance major purchases or pay down high-interest debt accrued elsewhere through balance transfers.

Final Word

The Jasper Mastercard® is one of the best credit cards for new-to-credit applicants and those with less-than-perfect credit, bar none. If you’re eager to begin using an unsecured credit card but concerned about the drawbacks of secured credit cards, Jasper could be just the answer you’ve been waiting for.

If you decide after careful consideration that Jasper isn’t right for you, don’t fret — plenty of high-quality unsecured credit cards appeal to first-timers.

Source: moneycrashers.com

3 Secured Credit Cards That Reward Responsible Use

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Source: credit.com