How LendingTree Rates Credit Cards?
Our experts rate credit cards based on several factors including card benefits, bonus offers and independent research. Credit card issuers do not influence or have a say in our card ratings. Read our credit card methodology here.The Applied Bank® Secured Visa® Gold Preferred® Credit Card is best if you have no credit or bad credit and may not qualify for secured cards from major issuers. This card doesn’t require a credit score and there’s no credit check when you apply, making it easier to get approved for. It also comes with an extremely low 9.99% (Fixed) variable.
The bad news is that it charges a $48 annual fee. Also, it doesn’t come with a grace period, which means you are charged interest immediately after your purchases. You can find many options for building credit that don’t charge an annual fee. Many credit-building cards also allow a grace period of several weeks before interest is charged on any unpaid balance. Other secured card issuers may even allow you to graduate to an unsecured credit card. The Applied Bank® Secured Visa® Gold Preferred® Credit Card, on the other hand, does not give you this option.
Although this card can help you build credit because it reports to the three major credit bureaus, there are much better secured cards for building credit.
How much does it cost to own? You’ll pay $48 in annual fees and earn $0 in rewards each year, for a total cost of $48, versus $3 for the average credit-building card.*
*Based on LendingTree’s value methodology
No credit check
There’s no credit check and no minimum credit score required to be approved for the Applied Bank® Secured Visa® Gold Preferred® Credit Card. To get approved, you’ll just need to provide a few details like your name, address and contact information. This is helpful if you have poor or limited credit and are worried about getting approved for a card.
Most credit cards require a credit check to confirm that you’re eligible for the card. When your credit score is pulled, a hard credit pull is generated and your credit score can drop by up to five points. A card that doesn’t require a credit check generates a soft credit pull that won’t affect your credit score.
Low fixed APR
The Applied Bank® Secured Visa® Gold Preferred® Credit Card comes with a very reasonable 9.99% (fixed) APR. This is one of the lowest APRs you can find, especially for a card with no credit check. For example, the OpenSky® Secured Visa® Credit Card has a 25.14% (variable) APR.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card has a fixed APR, meaning your interest rate is stable and won’t change without advance notice from your credit card issuer. Most credit cards come with a variable APR, meaning the APR is tied to an index. As the index increases or decreases, so will your APR.
Although you should try not to carry a balance on your card, the low APR you’ll get with the Applied Bank® Secured Visa® Gold Preferred® Credit Card can save you a lot in interest in case you can’t pay your balance in full.
No penalty APR
The Applied Bank® Secured Visa® Gold Preferred® Credit Card doesn’t have a penalty APR, meaning if you miss a payment or make a payment far past your due date, your APR won’t increase. Some credit cards have a penalty APR as high as 29.99%.
You’ll still be assessed a late payment fee of up to $38 each time your payment isn’t paid on time. Missed payments can also impact your credit score heavily and stay on your credit report for up to seven years, so it’s always best to pay on time.
Reports to all three credit bureaus
The Applied Bank® Secured Visa® Gold Preferred® Credit Card can help you build or rebuild credit because it reports to the three major credit bureaus — Equifax, Experian and TransUnion. These bureaus issue credit reports that help determine your credit score.
To ensure that you’re working towards building a good credit score you should:
Requires a security deposit
The Applied Bank® Secured Visa® Gold Preferred® Credit Card is a secured credit card meaning you’ll have to put a security deposit down to own the card. Your security deposit is refundable and will act as your line of credit. When you open the card, there’s a $200 minimum deposit required, with a maximum deposit of $1,000. Once your account is open you can deposit up to $5,000 to increase your credit limit.
Annual fee that will reduce your initial credit limit
Unfortunately, the Applied Bank® Secured Visa® Gold Preferred® Credit Card comes with a $48 annual fee. The annual fee will be billed to your account when it’s opened and subtracted from your security deposit. For example, if you put down a $200 security deposit, your initial available credit will be $152.
You can find many secured credit cards with no annual fee. Some even often rewards, making them much better values than the Applied Bank® Secured Visa® Gold Preferred® Credit Card. For example, the Capital One Quicksilver Secured Cash Rewards Credit Card (see rates & fees) and Discover it® Secured Credit Card come with a $0 annual fee and the opportunity to earn cash back rewards.
| Credit check required? | Yearly fees | Estimated first-year rewards* | |
|---|---|---|---|
| Applied Bank® Secured Visa® Gold Preferred® Credit Card | No | $48 | $0 |
| OpenSky® Secured Visa® Credit Card | No | $35 | $0 |
| Secured Self Visa® Credit Card | No | $25 | $0 |
| Capital One Platinum Secured Credit Card | Yes | $0 (see rates & fees) | $0 |
| Capital One Quicksilver Secured Cash Rewards Credit Card | Yes | $0 (see rates & fees) | $54 |
| Discover it® Secured Credit Card | Yes | $0 | $90.64 |
No grace period
This card doesn’t offer a grace period on purchases. This means you’ll be charged interest from the transaction date of your purchases. Although this card offers a low 9.99% (Fixed) APR, you’ll still be subject to interest that can quickly add up.
Most credit cards give you at least a 21-day grace period where you won’t be charged interest until your statement due date. For example, the OpenSky® Secured Visa® Credit Card has a grace period of 25 days after the close of each billing cycle. You won’t be charged interest with it if you pay in full by the due date.
No rewards program
If you’re working toward building or rebuilding credit, earning rewards shouldn’t be your main focus. But, there are credit cards available if you have limited or poor credit that allow you to earn rewards while improving your credit score.
For example, the Discover it® Secured Credit Card lets you earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically. Discover will match all the cash back you’ve earned at the end of your first year.
No chance to graduate to an unsecured card
The Applied Bank® Secured Visa® Gold Preferred® Credit Card doesn’t offer a path to upgrade to an unsecured card, but there are cards that do. By upgrading to an unsecured card, you can get your security deposit back and possibly even graduate to a card with rewards and benefits. Plus, you’ll avoid having to apply for a new card, which can generate a hard inquiry on your credit.
Cards that may let you upgrade include the OpenSky® Secured Visa® Credit Card — you may qualify for an unsecured card after six months of responsible spending. The Discover it® Secured Credit Card also offers automatic reviews starting at seven months to see if you qualify for an unsecured card.
| Credit Cards | Our Ratings | Rewards Rate | Annual Fee | Regular APR | |
|---|---|---|---|---|---|
Applied Bank® Secured Visa® Gold Preferred® Credit Card
 Apply Now
on Applied Bank's secure site |
Non-rewards card | $48 | 9.99% (Fixed) |
Apply Now
on Applied Bank's secure site |
|
OpenSky® Secured Visa® Credit Card
Apply Now
on Capital Bank, N.A.'s secure site |
Earn up to 10% cash back* on everyday purchases | $35 | 25.14% (variable) |
Apply Now
on Capital Bank, N.A.'s secure site |
|
Secured Self Visa® Credit Card
Apply Now
on Self's secure site Rates & Fees |
Non-rewards card | $25 | 29.24% Variable. |
Apply Now
on Self's secure site Rates & Fees |
|
Discover it® Secured Credit Card*
|
2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically | $0 | 27.74% Variable APR |
The benefit of choosing the OpenSky® Secured Visa® Credit Card card over the Applied Bank® Secured Visa® Gold Preferred® Credit Card is that you’ll have a chance to graduate to an unsecured credit card after six months of responsible spending. There’s no application or credit check, so you won’t have a hard inquiry on your credit when you upgrade.
The main downside of the Secured Self Visa® Credit Card is you’re required to have a Self credit builder account to open the card. If you don’t already have an account, you can set one up, but it may take several months after that to qualify for the card.
This card also offers the chance to upgrade to an unsecured card after seven months of responsible use. There’s a grace period on interest, no penalty APR and no late fee on your first late payment.
Just know that there’s a credit check to get approved for this card, which means it may be harder to qualify for. While it’s open to applicants with limited / poor credit, it may be off the table for you if you have seriously damaged credit.
The Applied Bank® Secured Visa® Gold Preferred® Credit Card can be a decent choice for a secured card if you don’t have credit or have bad credit — since it doesn’t require a credit check, you may have an easier time qualifying for it.
If you aren’t worried about qualifying for a secured credit card, the Discover it® Secured Credit Card or Capital One Quicksilver Secured Cash Rewards Credit Card (see rates & fees) are better cards that have no annual fee and allow you to earn rewards.
For Capital One products listed on this page, some of the above benefits are provided by third parties such as Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as certain terms, conditions, and exclusions apply.
The information related to the Discover it® Secured Credit Card has been collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication. Terms apply.
The content above is not provided by any issuer. Any opinions expressed are those of LendingTree alone and have not been reviewed, approved, or otherwise endorsed by any issuer. The offers and/or promotions mentioned above may have changed, expired, or are no longer available. Check the issuer's website for more details.
