If you’re looking for a secured credit card, you might be wondering if you should pick Visa over Mastercard. Or vice versa.
Fortunately, you can’t really go wrong with either choice as Mastercard and Visa pretty much offer the same secured card benefits. Instead, compare your options based on the features and perks offered by the issuer.
Look for these secured credit card benefits
Generally, secured cards from Visa and Mastercard offer similar benefits. More important is what you’ll get from your issuer.
When considering a secured card, look at these factors:
Reporting to major credit bureaus. A secured card can help you build credit, but only if your provider reports your payment history to the major credit bureaus. Ask if your provider reports to TransUnion, Equifax and Experian.
Potential to graduate to an unsecured card. Some card providers will return your security deposit after a specified period of time. This effectively makes your secured card an unsecured card.
Acceptance
Visa and Mastercard are the most widely accepted credit cards in the world. Here’s the bottom line for Visas and Mastercards: If a merchant accepts one, they’ll most likely accept the other. So regardless of which secured card you choose, you can probably use it anywhere credit cards are accepted.
Credit card networks vs. issuers: What’s the difference?
Credit card networks are companies that dictate the usage of credit cards between merchants and card users — think Visa, Mastercard, Discover and American Express. Networks set fees that allow merchants to accept their product.
Credit card issuers are companies who lend credit out to the consumers. For example, you have a Visa credit card that is issued by Chase bank — in this case, Chase is the issuer and Visa is the network. However, American Express and Discover are both networks and issuers.
Chances of approval
It isn’t easier to get approved for one over the other. Instead, it’s more important to consider your card issuer. For example, some issuers have tight approval standards, while other issuers accept consumers with poor credit.
Roadside assistance. If you have problems with your vehicle while you’re on the road, give a call to the roadside assistance hotline. Services include towing, tire changes, jump-starts, lockout service, fuel delivery and more.
Extended warranties. In many cases, your item’s original warranty is doubled if you’ve purchased it with your card.
To see if a card offers these benefits, check with your issuer. Cards may offer different perks depending on issuers’ agreements with the card networks.
You’ll find a wide variety of secured options to choose from with Mastercard and Visa. Below, we compared a couple of cards from each issuer to give you an idea of the types of features you might find while searching for the card that fits your needs.
This card has no annual fee and a relatively low APR of 16.5% variable . You can open your account for as little as $15 — $10 to join the credit union and $5 to open a savings account. However, you’ll need to make a deposit of at least $500 to use the card. Visa benefits include auto rental collision damage waivers, travel insurance coverage and extended warranties.
SDFCU Savings Secured Visa Platinum Card
You’ll pay no annual fee and a receive very low APR of 16.99% variable . Join SDFCU for as little as $10 along with a minimum $5 deposit into a savings account.
This card has no annual fee. You may qualify to deposit only $49 or $99 and still get a $200 credit line. After you pay your bill on time for the first five months, you’ll automatically qualify for a higher credit line. Because the card is a Platinum Mastercard, you’ll get benefits such as:
Extended warranty.
Auto rental insurance.
Travel accident insurance.
24/7 travel assistance.
24/7 roadside assistance.
Price protection.
Citi® Secured Mastercard®
A solid option with no annual fee. Like the Capital One Secured Card, it includes Mastercard benefits such as extended warranties and auto rental insurance.
Bottom line
Pick a secured credit card based on the features offered by the issuer if you want the best approach to selecting a secured credit card. While Visa and Mastercard occasionally provide additional benefits on their cards, these are typically restricted to their unsecured offerings.
Neither network charges a price for a consumer to use its product. The prices — for example, annual fees — are set directly by the issuer of the credit card.
No. However, you must pay for your rental with your card and be the primary driver of the rental car. In most cases, you need to decline the rental company’s insurance policy.
This isn’t up to Visa or Mastercard, but your issuer. Still, getting your deposit back after you close your card is standard practice across the industry.
Steven Dashiell is a personal finance writer, specializing in credit cards, banking and growing and protecting your income. His insights and expertise has been featured on Nasdaq, U.S. News & World Report, Time, CBS, ABC, Fox Business, Lifehacker and Martha Stewart Living, among other top media. Steve holds a BA in English from University of Maryland, Baltimore County, minoring in composition and rhetoric. In his spare time Steve nerds out on birds, paints and plays a whole lot of Street Fighter.
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