On this page
The Discover it® Secured Credit Card charges no annual fee and offers cash back rewards on every purchase, including a higher cash back rate at gas stations and restaurants. It also offers a cash back match in your first year for new cardholders. On top of that, Discover reviews your account regularly to see if you can graduate to an unsecured card and get your security deposit back.
Secured credit cards can be useful for many reasons. They can be helpful if you have no credit history or are rebuilding your credit. If you’re worried about being turned down for an unsecured credit card, there are many secured credit card options that can help you improve your credit score.
For a small upfront deposit, many secured credit cards offer solid cash back rewards, useful cardholder benefits and protections, and fees that won’t break your bank account. In fact, many of the best secured credit cards have no annual fee and report your account activity to all three credit bureaus. Over time, you may be able to graduate to an unsecured credit card and get your deposit refunded.
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.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.Minimum deposit: $200
Credit limit: $200 to $2,500
If you have limited / poor credit and want the opportunity to earn cash back rewards, the Discover it® Secured Credit Card is one of the best options you’ll find.
There’s no annual fee, and you can earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases. Discover will also match all the cash back you’ve earned at the end of your first year.
After you’ve had the card for seven months, Discover will begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded.
Unfortunately, it does have a high ongoing APR. But it offers a 10.99% Intro APR for 6 months on balance transfers — which is rare for a credit card intended for those with limited / poor credit. After the intro period, a 28.24% Variable APR applies.
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.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.Minimum deposit: $49
Credit limit: $200 minimum credit limit
Usually, secured credit cards require your deposit to match your credit line, but the Capital One Platinum Secured Credit Card is unique.
Depending on your credit score, you could qualify for a deposit as low as $49 to secure a $200 credit line. Capital One reports to the three major credit bureaus and will automatically consider you for a higher credit line in as little as six months.
That said, you’re not guaranteed to qualify for one of the lower deposit amounts, and you won’t know your minimum deposit amount until after you’ve been approved. While you won’t earn any rewards on your spending with this card, you don’t have to worry about ongoing fees, since it has no annual fee.
Keep in mind that this card has a high 29.99% (Variable) APR, so you should only choose the Capital One Platinum Secured Credit Card if you plan to pay your balance off each billing period.
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.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.Minimum deposit: $500
Credit limit: $500 minimum credit limit
While many secured cards have interest rates well above 20% (and sometimes above 30%), the DCU Visa® Platinum Secured Credit Card has a comparatively low APR range of 16.75% (variable).
If you think you’ll need to carry a balance on your credit card month over month, you’ll want a low interest credit card, like the DCU Visa® Platinum Secured Credit Card. Along with a competitive APR rate, the card charges no annual fee, no balance transfer fee, no foreign transaction fee, and no cash advance fee (if you use your line of credit to get cash from an ATM).
You do have to join Digital Federal Credit Union (DCU) to become a cardholder, but there are many ways to qualify for membership.
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.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.Minimum deposit: $200
Credit limit: $200 minimum credit limit
The Capital One Quicksilver Secured Cash Rewards Credit Card earns cash back on every purchase at a rate that matches some of the best cash back cards. It’s a great option if your spending fluctuates between different categories from month to month.
This card also offers a $0 annual fee and no foreign transaction fees. The card does charge a high APR of 29.99% (Variable), so it’s best for people who plan to pay their credit card bill in full each month.
This card can also be a gateway to getting an unsecured credit card. With responsible use, you may be able to earn your deposit back and upgrade to an unsecured card.
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.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.Minimum deposit: $300
Credit limit: $300 to $5,000
The U.S. Bank Altitude Go Visa Secured Card is designed for cardholders with limited / poor credit, but it doesn’t skimp on the rewards. It offers rewards on all purchases plus a generous rewards bonus on dining, takeout and food delivery purchases.
U.S. Bank Altitude Go Visa Secured Card cardholders earn 4X points on dining, takeout and restaurant delivery, 2X at grocery stores, grocery delivery, streaming services, gas stations and EV charging stations, 1X on all other purchases. You’ll also get a $15 annual credit on streaming purchases, allowing you to put even more money back in your pocket. The Altitude Go secured card also reports your status to the three major credit bureaus, allowing you to build credit, all with no annual fee.
Just keep in mind, the U.S. Bank Altitude Go Visa Secured Card comes with an extremely high APR of 29.99%.
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.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.Minimum deposit: $300
Credit limit: $300 to $5,000
The U.S. Bank Cash+ Visa Secured Card is another great secured credit card option, in part due to its flexible and generous rewards structure. You can earn 5% cash back on up to $2,000 in purchases per quarter in the two categories of your choosing, 2% cash back on purchases in one everyday category of your choice, 1% back on other purchases, and there’s no annual fee.
U.S. Bank also regularly monitors your account, and with responsible use, you may be able to graduate to an unsecured card.
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.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.Minimum deposit: $200
Credit limit: $200 to $3,000
The OpenSky® Secured Visa® Credit Card can be a great option for those who can’t qualify for other secured credit cards. It does not require a credit check to apply, which means you may be able to qualify even if you’ve been denied for other cards.
It even offers a pretty reasonable 25.64% (variable) APR. The OpenSky® Secured Visa® Credit Card also provides the opportunity to transition to an unsecured credit card. In fact, you could be eligible for an unsecured OpenSky card in as little as six months.
Keep in mind that not requiring a credit check does come with tradeoffs, like a $35 annual fee.
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.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.Minimum deposit: $100
Credit limit: $100 minimum credit limit
The Secured Self Visa® Credit Card is a secured credit card that comes with a $25 annual fee and requires a Self Credit Builder Account. It has no rewards program or sign-up bonus, so it’s a simple card designed to help you build credit. Once you have had your Self Credit Builder Account for at least three months, you can designate at least $100 to serve as your security deposit to open the card. Self reports your payment history and status to the three major credit bureaus, allowing you to build your credit profile with responsible use.
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.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.Minimum deposit: $200
Credit limit: $200 to $5,000
If you qualify for membership with Navy Federal Credit Union, you’ll find that the Navy Federal nRewards® Secured Credit Card is a very affordable secured credit card. It comes with a $0 annual fee and a low 18.00% variable APR.
In addition to no annual fee and a low APR, it lets you earn rewards on every purchase: 1X points per dollar spent.
After three months of using it responsibly, you may be eligible to receive additional credit to allow for spending beyond your deposit. After six months, Navy Federal will automatically review your account to see if you’re eligible to be upgraded to an unsecured card.
Credit Cards | Our Ratings | Rewards Rate | Regular APR | Late Fee | |
---|---|---|---|---|---|
![]()
Discover it® Secured Credit Card
on Discover's secure site Rates & Fees |
Winner
|
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. Plus earn unlimited 1% cash back on all other purchases. | 28.24% Variable APR | None the first time you pay late. After that, up to $41. |
on Discover's secure site Rates & Fees |
![]()
Capital One Platinum Secured Credit Card
on Capital One's secure site Rates & Fees |
Low security deposit
|
Non-rewards Card | 29.99% (Variable) | Up to $40 |
on Capital One's secure site Rates & Fees |
![]()
DCU Visa® Platinum Secured Credit Card*
|
Low APR
|
N/A | 16.75% (variable) | Up to $35 | |
![]()
Capital One Quicksilver Secured Cash Rewards Credit Card
on Capital One's secure site Rates & Fees |
Cash back rewards
|
1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | 29.99% (Variable) | Up to $40 |
on Capital One's secure site Rates & Fees |
![]()
U.S. Bank Altitude Go Visa Secured Card*
Learn More
on U.S. Bank's secure site |
4.2
Dining rewards
|
4X points on dining, takeout and restaurant delivery, 2X at grocery stores, grocery delivery, streaming services, gas stations and EV charging stations, 1X on all other purchases | 29.99% | Up to $41 |
Learn More
on U.S. Bank's secure site |
![]()
U.S. Bank Cash+ Visa Secured Card*
Learn More
on ABOC's secure site |
2.5
Flexible rewards
|
5% cash back on up to $2,000 in purchases per quarter in the two categories of your choosing, 2% cash back on purchases in one everyday category of your choice, 1% back on other purchases | 29.99% | Up to $41 |
Learn More
on ABOC's secure site |
![]()
OpenSky® Secured Visa® Credit Card
on Capital Bank, N.A.'s secure site |
No credit check
|
Earn up to 10% cash back* on everyday purchases | 25.64% (variable) | Up to $40 |
on Capital Bank, N.A.'s secure site |
![]()
Secured Self Visa® Credit Card
on Self's secure site Rates & Fees |
No hard credit check and low deposit
|
Non-rewards card | 29.24% Variable. | up to $15 |
on Self's secure site Rates & Fees |
![]()
Navy Federal nRewards® Secured Credit Card*
Learn More
on Navy Federal Credit Union's secure site |
4.3
Military members
|
1X points per dollar spent | 18.00% variable | Up to $20 |
Learn More
on Navy Federal Credit Union's secure site |
A secured credit card is a type of credit card that requires you to make a cash deposit upfront. This acts as collateral and secures your line of credit. The deposit amount is generally equal to your line of credit which means a $200 security deposit would allow you to make up to $200 in purchases with your card before having to make a payment.
Paying with a secured credit card is similar to paying with unsecured credit cards. You can use your secured credit card to pay for purchases anywhere credit cards from your card issuer are accepted. Just like an unsecured credit card, a secured credit card can help build your credit history by reporting your payments to credit bureaus.
If you do not pay your credit card bill, the money you owe is deducted from your deposit and your account will likely be closed. In situations where you choose to close the account yourself, as long as you have no outstanding charges, your deposit will be returned in full.
One big difference between secured and unsecured cards is that an unsecured credit card does not require a deposit, while a secured credit card does. Unsecured credit cards generally have more stringent credit score requirements and offer better rewards. Secured credit cards are useful for people with poor credit or those just establishing credit.
There are unsecured credit cards for limited or bad credit. Be careful when considering these cards, as they may come with expensive annual fees. You may be better off with a secured card that offers transparent terms and no or low annual fee. When you have poor or limited credit, the best cards generally have no or low annual fee.
Secured credit cards | Unsecured credit cards | |
---|---|---|
Report activity to credit bureaus | ||
Can earn rewards | ||
Require a security deposit | ||
Credit limit based on your deposit (usually) | ||
Credit limit based on creditworthiness | ||
Can apply with poor or no credit | ||
May have higher interest rates |
Secured credit cards are primarily best for two types of consumers: individuals with low credit scores or poor credit history, and consumers with no credit history or limited credit history. But whether you’re looking to build or rebuild your credit with the help of a secured credit card, it’s crucial to use your card responsibly. That means paying at least the minimum on time each month and staying below your credit limit.
When deciding which secured credit card is best for you, ask yourself these questions:
That means considering your biggest financial priorities. Is your priority getting the best rewards secured card, or one with a low deposit, just getting approved for any kind of card, or something else?
You should avoid a secured credit card with an annual fee, if possible. This will not only save money, but will give you the option to keep the account open. When you’re able to move on to better credit cards, you may want to maintain your secured card to improve the overall age of your accounts, since that affects your credit score.
Opening a card without an annual fee means you can leave your account open indefinitely for free. That said, sometimes an annual fee is worth it, especially if you can’t get a card any other way.
Getting a secured card that offers a clear path to upgrade to an unsecured card and get your deposit back gives you a goal to work toward in your financial journey.
A minimum deposit requirement of $200 is fairly typical, but some secured cards will require a minimum deposit as high as $300 or even $500. With the Capital One Platinum Secured Credit Card, you may be able to start with just a $49 deposit. While you may be looking for the lowest deposit possible, you may want to consider a card that allows you to boost your deposit, to secure a larger credit line.
This is because credit utilization (how much of your available credit line you are using) is a major factor in your credit score. A larger credit line will help you keep your utilization low, and may improve your credit score.
Building credit should be your main focus with a secured card. Still, as long as the credit card rewards don’t tempt you to overspend on your credit card, they can give you a little return on your spending.
If you’re worried about getting approved for a card, you may want to choose a card that has no credit check, or a card with a bank you already have a relationship with.
Applying for a secured card is like applying for an unsecured credit card. Once you have decided which secured credit card you want to apply for, find the application page on the issuer’s website. You’ll want to have the following information available for filling out the application:
Not all banks offer secured cards, but if yours does, you might want to start by considering their card. An existing relationship with an issuer boosts your odds of approval, plus your bank is likely to offer you better cards down the line.
Here’s a list of some banks that issue secured credit cards:
As long as the credit card issuer reports account and payment activity to the three major consumer credit bureaus, using your card responsibly will help build positive credit history. Here are a few tips for building credit:
The most important factor in improving your credit score is to always pay on time. Even if you can’t pay the full amount, at least pay the minimum. Late and missed payments will hurt your score more than almost anything else.
If your due date slips your mind, make the payment as quickly as possible, because many issuers don’t report a late payment to the bureaus until you’re behind 30 days or more. Also, set up automatic payments if possible (most issuers offer this option) — this will help you make on-time payments and avoid expensive late fees and interest.
Next, pay attention to your credit utilization — that is, how much of your available credit you’re using. The closer you are to maxing out your credit card, the riskier you seem to lenders and the more your credit score will suffer. A good rule of thumb is to keep utilization at 30% or less. For example, on a card with a $200 credit limit, aim to never have more than a $60 balance at any time.
In addition to payment history and utilization, avoid applying for new credit too frequently. When you apply for credit, the prospective lender checks your credit report, which generates what’s called a hard inquiry. Each hard inquiry may knock your credit score down a few points. Plus, opening new cards reduces your average age of accounts. Fewer recent inquiries and a longer average age of accounts are both better for your credit score.
Take a close look at your credit report to see if you have any old debts in collections or errors on your credit report. While using a secured credit card can help you improve your score, taking care of blemishes on your credit report is also a crucial part of building credit. While you’re at it, take advantage of any credit scoring and credit-monitoring tools that your issuer offers — this will help you catch missed payments or suspicious activity on your credit report before it gets out of hand.
Some issuers allow you to graduate from a secured credit card to an unsecured one, and refund your deposit. Issuers like Discover and NFCU even offer clear timelines for account reviews and upgrades.
Some issuers, like Capital One, offer the opportunity to graduate to an unsecured card, but don’t specify a timeline for reviews. It does, however, offer automatic reviews starting at six months to increase your credit line.
The following tips will improve your chances of upgrading to an unsecured card:
If you don’t have the cash available to put down as a minimum security deposit, or if you just want to consider all of your options, here are some alternatives to using a secured credit card:
All the credit cards on this list are secured cards, meaning you must submit a security deposit to the issuer. This protects the issuer in case you default on what you owe. When determining the best secured cards, we evaluated rewards potential, annual fees, and other features.
Many of the cards on this list earn cash back or points. While building credit should be your primary focus with a secured card, it’s still nice to have the opportunity to earn cash back on your normal spending.
Another factor was annual fees. Most of the secured cards on this list charge no annual fee. The cards on this list do offer enough value to consumers with poor/limited credit that some will find the annual fee worth it.
Finally, if a card has other unique features — such as offering the chance for an unusually low security deposit or requiring no credit check to apply — that was also taken into consideration.
Secured credit cards are most useful to those with poor or bad credit, or no credit at all. If you already have good credit, you may want to consider looking at our list of best credit cards instead. If you are working on improving your credit and are having trouble getting approved for an unsecured card, a secured credit card could be a good option.
Like unsecured cards, some secured cards charge annual fees while others don’t. Our top choice, the Discover it® Secured Credit Card, has a $0 annual fee. Make sure that you understand the fees associated with any card before you apply.
Yes, many people can get a secured credit card with bad credit because secured cards are designed to help rebuild or establish credit. If you’re turned down for a secured card, you may need to consider other options, such as asking a family member to make you an authorized user on one of their cards, or a card with no credit check.
Yes, but not until you’ve graduated to an unsecured credit card or close your account. As long as your account is in good standing when either of those events happen, you should get a full refund of your deposit.
Secured cards require a cash deposit as collateral, whereas unsecured credit cards extend a line of credit with no collateral required.
Also note that secured credit cards may be available to people with bad credit or no credit, whereas unsecured credit cards often have more stringent approval requirements. Generally, you will need a higher credit score to be approved for an unsecured card vs. a secured credit card.
Using a secured credit card can boost your credit score if you use credit with care and you never miss a payment. However, you can also see your credit score drop if you max out your secured credit card limit and make late payments. If you are ultimately able to use a secured credit card to boost your credit score, the number of points you gain will vary based on a wide range of factors.
Yes, it’s possible to be denied a secured credit card. Minimum requirements vary by card issuer. You may be informed of their decision immediately after applying or by a mailed letter.
For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.
The information related to the DCU Visa® Platinum Secured Credit Card, U.S. Bank Altitude Go Visa Secured Card, U.S. Bank Cash+ Visa Secured Card and Navy Federal nRewards® 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.
Dan Miller is a freelance writer and has been covering credit cards, student loans and all things personal finance since 2014. His home base is in Cincinnati, but he tries to travel the world as much as possible with his wife and 6 kids.
Read More