Are there any secured credit cards that offer rewards?
To answer this question it’s important to understand credit cards and financial service related products undergo frequent changes constantly. The laws that surround credit cards and personal loans can change just because the laws in a state, province, city or even Country. This is why it’s best to find all the secured credit card issuers in your area and see what kinds of benefits they offer.
If it’s a major financial institution like a bank that is offering you a secured credit card they might have bonuses but typically major banks only issue secured credit cards in particular instances. The reason why rewards programs aren’t typically available in secured credit cards is because usually secured credit cards are given to people who haven’t established their credit history or people who have had credit issues in the past and they’re looking to rebuild their credit history.
Because this can be very risky to a bank or financial institution who is only in it for the money they’ll usually be slow to offer any rewards to a secured credit card client. The concept with credit cards is to get people into unsecured credit cards because typically the credit card issuer can make more profit via the interest fees and the annual charges, transaction fees and so on.
One thing I would advise to anyone thinking of applying for a secured credit card is to read the terms and conditions namely the sections that talk about the fees. Typically these sections are in bold print try to familiarize yourself with the terms of the secured credit contract you’re signing. Last thing I want to point out is the best way to build or rebuild your credit is to pay you credit card bill in full every single month. Don’t make keeping a credit card balance a habit!