Best Credit Cards After Foreclosure

Best Credit Cards After Foreclosure

March 1, 2016         Written By Jason Steele

There are few things as damaging to your credit as having your home foreclosed. For the vast majority of Americans, their home is their largest investment, and defaulting on their loan will seriously damage their credit for a long time. And if you have gone through foreclosure, then you may be one of millions of Americans who became the victim of the real estate bubble and the Great Recession.

Having survived foreclosure, you will still need access to credit cards. Compared to other forms of payment, credit cards offer unparalleled security and convenience. In addition, it is far easier to reserve a hotel room or to rent a car when you have a major credit card compared to using cash, debit, or checks. Also, many major credit cards offer car rental insurance at no extra charge, so you don’t have to purchase the expensive coverage sold by the car rental agencies.

Those who have gone through foreclosure will have damaged credit, similar to others who have gone through bankruptcy, divorce, or have had problems paying medical bills. The key to receiving a credit card when you have damaged credit is to apply for a secured credit card, which works much like a standard credit card, except it requires the payment of a refundable security deposit before the account can be opened. But once opened, a secured card account still requires making a minimum monthly payment and interest can be incurred when you carry a balance. And fortunately, having a secured card open and in good standing will improve your credit score over time. What’s important is that you make all of your payments on time, and pay at least the minimum every month. Fortunately, all of these cards offer payment alerts via text or email.

Here are five credit cards that are ideal for those who have been through foreclosure:

Capital One Secured MasterCard

card image
The Capital One Secured MasterCard is one of the few secured cards that does not have an annual fee. New applicants submit a refundable security deposit of $49, $99 or $200 based on their creditworthiness, which results in an initial credit line of $200 to $3,000.

But far from being a stripped down credit card, Capital One’s Secured MasterCard offers numerous valuable benefits, including extended warranty coverage, auto rental insurance, and price protection. In addition, it offers the Capital One Credit Tracker which includes free unlimited access to your credit score, what-if simulator, and other tools. There is no annual fee for this card, and like all Capital One cards, there are no foreign transaction fees imposed on charges processed outside of the United States.

primor Secured Visa Classic Card

This card offers a fast, application process and on application fees. As with other secured cards, applicants must submit a refundable security deposit in order to open an account. This card does offer a low 13.99% APR interest rate for purchases and a 18.99% APR for cash advances. There is a $39 annual fee for this card.

primor Secured Visa Gold Card

card image
The primor Secured Visa Gold card is much the same as the Classic version, with two exceptions. First, it has an even lower interest rate of 9.99%. But on the other hand, it has a higher annual fee of $49. Much like the Classic version the Gold also reports your payments to the three major consumer credit bureaus, making it an excellent choice for those who are trying to rebuild their credit.

OpenSky Secured Visa Credit Card

card image
The OpenSky Secured Visa Credit Card requires no credit check and has a short application process. In addition, it allows customers to submit their refundable security deposit in a number of different ways, including checks, money orders, debit cards, wire transfers, or even Western Union. The deposit can be any amount between $200 and $3,000, which becomes your credit limit. The standard interest rate for both new purchases and cash advances is 18.89% (variable). There is a $35 annual fee for this card.

Unity Visa Secured Card

card image
The Unity Visa Secured card is offered by OneUnited bank for a low $39 annual fee, and it features a competitive interest rate of 17.99%.

The information contained within this article was accurate as of March 1, 2016. For up-to-date
information on any of the terms, cards or offers mentioned above, visit the issuer's website.


About Jason Steele

Jason Steele is a freelance journalist and an expert on the credit card industry. He contributes to several of the top personal finance sites, and his work is syndicated to mainstream outlets such as MSN Money, Yahoo! Finance, and Business Insider.
View all posts by Jason Steele
Featured Low Interest Card
Top Features : 1.25X miles on every purchase; no annual fee; bonus of 20,000 miles once $1,000 is spent in first 3 months
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Bad Credit Card
Top Features : No Annual Fee; Cash Back match at the end of your first year; Social Security Alerts
Featured Fair Credit Card
Top Features : No annual fee; access to higher credit line after making first 5 monthly payments on time
Featured Limited/No Credit
Top Features : No annual fee; reports to major credit bureaus; access to higher credit line after making first 5 monthly payments on time
Featured Cash Back Card
Top Features : No Annual Fee, Bonus Offer, Cash Back