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September 29, 2022
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The Discover it® Secured Credit Card earns cash back at gas stations and restaurants, charges a $0 annual fee and offers a transparent schedule for when you might get the chance to graduate to an unsecured card and get your security deposit refunded.
If your credit is too poor or limited to be approved for a traditional credit card with favorable terms — like a low APR, generous rewards and useful benefits — a secured credit card can serve as a great tool to help you build or establish your credit profile.
This type of credit card requires you to put down a cash deposit as collateral for your new line of credit, which is typically in the amount of your desired credit limit. This collateral protects the issuer if you don’t pay back what you owe on the card. Because of this, secured cards are typically more accessible than “unsecured” cards if you have poor or fair credit.
The best secured credit cards report your account activity to the three major credit bureaus and provide a pathway to graduate to an unsecured credit card and get your security deposit refunded. They also may offer a $0 annual fee, rewards for every purchase you make and practical cardholder benefits and protections.
Read on to learn which cards we recommend for different types of goals, plus how to apply.
Minimum deposit: $200
Credit limit: $200 to $2,500
Why we picked this card: The Discover it® Secured Credit Card charges a $0 annual fee, comes with a cash back program and offers a transparent schedule for when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
$0 annual fee Earn rewards on your spending Intro APR on balance transfers No penalty APR or late fee the first time you pay late (then $41) | High ongoing APR No 0% intro APR Balance transfer fee |
If you have poor/limited credit and want the opportunity to earn cash back rewards, the Discover it® Secured Credit Card is well worth your consideration.
Cardholders can 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. Plus, Discover will match all the cash back you’ve earned at the end of your first year.
TheDiscover it® Secured Credit Card charges a $0 annual fee and requires a $200 security deposit. 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.
While the Discover it® Secured Credit Card has a high ongoing APR of 25.99% Variable APR on purchases, it does offer a 10.99% Intro APR for 6 months on balance transfers — which is rare for a credit card intended for those with poor/limited credit. After the intro period, a 25.99% Variable APR applies.
Minimum deposit: $200
Credit limit: $200 to $2,500
Why we picked this card: The Discover it® Secured Credit Card charges a $0 annual fee, comes with a cash back program and offers a transparent schedule for when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
$0 annual fee Earn rewards on your spending Intro APR on balance transfers No penalty APR or late fee the first time you pay late (then $41) | High ongoing APR No 0% intro APR Balance transfer fee |
If you have poor/limited credit and want the opportunity to earn cash back rewards, the Discover it® Secured Credit Card is well worth your consideration.
Cardholders can 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. Plus, Discover will match all the cash back you’ve earned at the end of your first year.
TheDiscover it® Secured Credit Card charges a $0 annual fee and requires a $200 security deposit. 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.
While the Discover it® Secured Credit Card has a high ongoing APR of 25.99% Variable APR on purchases, it does offer a 10.99% Intro APR for 6 months on balance transfers — which is rare for a credit card intended for those with poor/limited credit. After the intro period, a 25.99% Variable APR applies.
Minimum deposit: $49, $99 or $200
Credit limit: $200 to $1,000
Why we picked this card: The Capital One Platinum Secured Credit Card is unique compared to most secured cards, which typically require your deposit to match the amount of your desired credit limit. But this card offers the chance to qualify for a lower deposit amount, which can be helpful if you don’t immediately have $200 on hand.
| Pros | Cons |
|---|---|
Security deposits start at $49 $0 annual fee Foreign transaction fees: None Automatic credit line reviews in as little as six months | High APR can lead to costly interest charges No rewards program Lower security deposits not guaranteed |
If you think you’ll have trouble putting together a $200 deposit, the Capital One Platinum Secured Credit Card could be a good fit. Capital One offers the chance to qualify for a $200 credit line with a minimum refundable deposit of $49, $99 or $200.
That said, you’ll have to apply and be approved before your minimum deposit is determined, and you’re not guaranteed to qualify for one of the lower deposit amounts.
Another benefit of this card is its $0 annual fee, although it’s worth noting that you won’t earn any rewards on your spending. The card’s 28.49% (Variable) APR can also make carrying a balance costly, so you should only choose this card if you plan to pay your balance off each billing period.
Minimum deposit: $49, $99 or $200
Credit limit: $200 to $1,000
Why we picked this card: The Capital One Platinum Secured Credit Card is unique compared to most secured cards, which typically require your deposit to match the amount of your desired credit limit. But this card offers the chance to qualify for a lower deposit amount, which can be helpful if you don’t immediately have $200 on hand.
| Pros | Cons |
|---|---|
Security deposits start at $49 $0 annual fee Foreign transaction fees: None Automatic credit line reviews in as little as six months | High APR can lead to costly interest charges No rewards program Lower security deposits not guaranteed |
If you think you’ll have trouble putting together a $200 deposit, the Capital One Platinum Secured Credit Card could be a good fit. Capital One offers the chance to qualify for a $200 credit line with a minimum refundable deposit of $49, $99 or $200.
That said, you’ll have to apply and be approved before your minimum deposit is determined, and you’re not guaranteed to qualify for one of the lower deposit amounts.
Another benefit of this card is its $0 annual fee, although it’s worth noting that you won’t earn any rewards on your spending. The card’s 28.49% (Variable) APR can also make carrying a balance costly, so you should only choose this card if you plan to pay your balance off each billing period.
Minimum deposit: $500
Credit limit: $500 minimum, no set maximum
Why we picked this card: The DCU Visa® Platinum Secured Credit Card stands out for its low APR of 13.75% to 18% (variable) in a world where many secured cards have interest rates well above 20%.
| Pros | Cons |
|---|---|
Lower APR on purchases and balance transfers $0 annual fee Balance transfer fee: None Cash advance fee: None | Credit union membership required Savings account required $500 minimum deposit required No rewards program |
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 an ongoing APR of 13.75% to 18% (variable), the card charges a $0 annual fee, None balance transfer fee and None 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 luckily, there are many ways to qualify for membership.
Minimum deposit: $500
Credit limit: $500 minimum, no set maximum
Why we picked this card: The DCU Visa® Platinum Secured Credit Card stands out for its low APR of 13.75% to 18% (variable) in a world where many secured cards have interest rates well above 20%.
| Pros | Cons |
|---|---|
Lower APR on purchases and balance transfers $0 annual fee Balance transfer fee: None Cash advance fee: None | Credit union membership required Savings account required $500 minimum deposit required No rewards program |
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 an ongoing APR of 13.75% to 18% (variable), the card charges a $0 annual fee, None balance transfer fee and None 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 luckily, there are many ways to qualify for membership.
Minimum deposit: $200
Credit limit: $200 to $3,000
Why we picked this card: The Capital One Quicksilver Secured Cash Rewards Credit Card earns flat-rate cash back on every purchase, making it ideal if your spending fluctuates between different categories from month to month.
| Pros | Cons |
|---|---|
Cash back rewards $0 annual fee F oreign transaction fees: None Automatic credit line reviews | High 28.49% (Variable) APR Geared to people with "fair" credit instead of bad credit Balance transfer fee |
If you want a simple approach to earning cash back rewards, you’ll like the Capital One Quicksilver Secured Cash Rewards Credit Card‘s rewards program. Cardholders earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).
This card also offers a $0 annual fee, and as for foreign transaction fees — there are none. However, the high APR of 28.49% (Variable) can make carrying a balance very expensive, so this card is best for people who plan to pay their credit card bill in full each month.
Minimum deposit: $200
Credit limit: $200 to $3,000
Why we picked this card: The Capital One Quicksilver Secured Cash Rewards Credit Card earns flat-rate cash back on every purchase, making it ideal if your spending fluctuates between different categories from month to month.
| Pros | Cons |
|---|---|
Cash back rewards $0 annual fee F oreign transaction fees: None Automatic credit line reviews | High 28.49% (Variable) APR Geared to people with "fair" credit instead of bad credit Balance transfer fee |
If you want a simple approach to earning cash back rewards, you’ll like the Capital One Quicksilver Secured Cash Rewards Credit Card‘s rewards program. Cardholders earn 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply).
This card also offers a $0 annual fee, and as for foreign transaction fees — there are none. However, the high APR of 28.49% (Variable) can make carrying a balance very expensive, so this card is best for people who plan to pay their credit card bill in full each month.
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: Designed for those with limited-poor credit, the U.S. Bank Altitude Go Visa Secured Card offers generous rewards on dining, whether you’re eating in at a restaurant, picking up takeout or getting delivery.
| Pros | Cons |
|---|---|
$0 annual fee $0 foreign transaction fee Earns cash back rewards Annual streaming credit | High APR of 28.24% variable Credit check and hard inquiry required $300 minimum deposit required |
If you spend a large amount on dining each month, the U.S. Bank Altitude Go Visa Secured Card earns could be ideal. Cardholders earn 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
Additionally, the $0-annual-fee card offers a $15 credit for annual streaming service purchases, like Netflix and Spotify. As for foreign transaction fees? There are none.
Just know, the U.S. Bank Altitude Go Visa Secured Card comes with an extremely high APR of 28.24% variable.
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: Designed for those with limited-poor credit, the U.S. Bank Altitude Go Visa Secured Card offers generous rewards on dining, whether you’re eating in at a restaurant, picking up takeout or getting delivery.
| Pros | Cons |
|---|---|
$0 annual fee $0 foreign transaction fee Earns cash back rewards Annual streaming credit | High APR of 28.24% variable Credit check and hard inquiry required $300 minimum deposit required |
If you spend a large amount on dining each month, the U.S. Bank Altitude Go Visa Secured Card earns could be ideal. Cardholders earn 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
Additionally, the $0-annual-fee card offers a $15 credit for annual streaming service purchases, like Netflix and Spotify. As for foreign transaction fees? There are none.
Just know, the U.S. Bank Altitude Go Visa Secured Card comes with an extremely high APR of 28.24% variable.
Minimum deposit: $300
Credit limit: $300 to $4,900
Why we picked this card: The Bank of America® Customized Cash Rewards Secured Credit Card offers uniquely flexible cash back program where you can choose from six different categories to earn 3% cash back on.
| Pros | Cons |
|---|---|
Builds credit history Chance to graduate to an unsecured card $0 annual fee Earns cash back | High 26.24% variable APR 3% foreign transaction fee $300 minimum deposit |
If you want to have some say so as to which of your purchases earn rewards, the Bank of America® Customized Cash Rewards Secured Credit Card could be ideal. The $0-annual-fee card lets holders earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% cash back on all other purchases. Choice category options, which can be changed as often as once a month, include:
Just beware that the card has a high APR of 24.24% variable.
Minimum deposit: $300
Credit limit: $300 to $4,900
Why we picked this card: The Bank of America® Customized Cash Rewards Secured Credit Card offers uniquely flexible cash back program where you can choose from six different categories to earn 3% cash back on.
| Pros | Cons |
|---|---|
Builds credit history Chance to graduate to an unsecured card $0 annual fee Earns cash back | High 26.24% variable APR 3% foreign transaction fee $300 minimum deposit |
If you want to have some say so as to which of your purchases earn rewards, the Bank of America® Customized Cash Rewards Secured Credit Card could be ideal. The $0-annual-fee card lets holders earn 3% cash back in the category of your choice, 2% cash back at grocery stores and wholesale clubs (for the first $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), 1% cash back on all other purchases. Choice category options, which can be changed as often as once a month, include:
Just beware that the card has a high APR of 24.24% variable.
Minimum deposit: $200
Credit limit: $200 to $3,000
Why we picked this card: The OpenSky® Secured Visa® Credit Card requires no credit check to apply and is accessible to consumers with Poor/Limited credit.
| Pros | Cons |
|---|---|
Builds credit history No credit check to apply Reasonable 18.89% (variable) APR | Can't graduate to an unsecured card $35 annual fee Foreign transaction fee: 3% of each Transaction in U.S. dollars Doesn't earn rewards |
If your credit is too bad to be approved for a traditional or even a secured credit card, the OpenSky® Secured Visa® Credit Card may be your best bet, since it does not require a credit check or bank account to apply. You will, however, need to provide some financial information, such as your annual income and monthly housing payment.
Additionally, the OpenSky® Secured Visa® Credit Card does not provide the opportunity to transition to an unsecured credit card after demonstrating responsible card usage. This means, the only way to get your deposit back is to pay your balance in full and close your card account.
While the OpenSky® Secured Visa® Credit Card offers a reasonable APR of 18.89% (variable), it does charge a $35 annual fee.
Minimum deposit: $200
Credit limit: $200 to $3,000
Why we picked this card: The OpenSky® Secured Visa® Credit Card requires no credit check to apply and is accessible to consumers with Poor/Limited credit.
| Pros | Cons |
|---|---|
Builds credit history No credit check to apply Reasonable 18.89% (variable) APR | Can't graduate to an unsecured card $35 annual fee Foreign transaction fee: 3% of each Transaction in U.S. dollars Doesn't earn rewards |
If your credit is too bad to be approved for a traditional or even a secured credit card, the OpenSky® Secured Visa® Credit Card may be your best bet, since it does not require a credit check or bank account to apply. You will, however, need to provide some financial information, such as your annual income and monthly housing payment.
Additionally, the OpenSky® Secured Visa® Credit Card does not provide the opportunity to transition to an unsecured credit card after demonstrating responsible card usage. This means, the only way to get your deposit back is to pay your balance in full and close your card account.
While the OpenSky® Secured Visa® Credit Card offers a reasonable APR of 18.89% (variable), it does charge a $35 annual fee.
Minimum deposit: No minimum
Credit limit: No minimum, $10,000 maximum
Why we picked this card: The Secured Sable ONE Credit Card offers a credit line of up to $10,000 — which is one of the highest credit lines currently available for a secured credit card.
| Pros | Cons |
|---|---|
No credit check to apply No minimum deposit amount $0 annual fee Cash back rewards program Accessible even if you don't have an Social Security number | Requires a Sable bank account Charges 2% fee on all foreign transactions. No intro APR |
The Secured Sable ONE Credit Card is one of the best high limit secured credit cards, since you can secure a line of credit worth up to $10,000. This makes it easier to use your secured card for large purchases, and to keep your credit utilization ratio low to boost your credit score.
Unlike the majority of secured credit cards, the Secured Sable ONE Credit Card does not have a minimum deposit requirement. Additionally, the card provides an opportunity to graduate to an unsecured card in as little as four months, which is faster than other secured cards advertise.
The card offers an APR of Prime + 6.99% (Variable) and charges a $0 annual fee. Cardholders earn 2% cash back on everyday purchases at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and more! Plus, earn 1% cash back on all other purchases..
Minimum deposit: No minimum
Credit limit: No minimum, $10,000 maximum
Why we picked this card: The Secured Sable ONE Credit Card offers a credit line of up to $10,000 — which is one of the highest credit lines currently available for a secured credit card.
| Pros | Cons |
|---|---|
No credit check to apply No minimum deposit amount $0 annual fee Cash back rewards program Accessible even if you don't have an Social Security number | Requires a Sable bank account Charges 2% fee on all foreign transactions. No intro APR |
The Secured Sable ONE Credit Card is one of the best high limit secured credit cards, since you can secure a line of credit worth up to $10,000. This makes it easier to use your secured card for large purchases, and to keep your credit utilization ratio low to boost your credit score.
Unlike the majority of secured credit cards, the Secured Sable ONE Credit Card does not have a minimum deposit requirement. Additionally, the card provides an opportunity to graduate to an unsecured card in as little as four months, which is faster than other secured cards advertise.
The card offers an APR of Prime + 6.99% (Variable) and charges a $0 annual fee. Cardholders earn 2% cash back on everyday purchases at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and more! Plus, earn 1% cash back on all other purchases..
Minimum deposit: $200
Credit limit: $200 minimum, no set maximum
Why we picked this card: If you qualify for membership with Navy Federal Credit Union, the Navy Federal nRewards® Secured Credit Card offers a chance to build credit with a transparent schedule on when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
Builds credit history Chance to graduate to an unsecured card Reasonable 18.00% variable APR $0 annual fee $0 foreign transaction fee Earns rewards | NFCU membership requires a military connection Credit check and hard inquiry required Rewards expire after four years |
If you or a family member are part of the armed forces, Department of Defense or National Guard, the Navy Federal nRewards® Secured Credit Card should be on your list of secured credit cards to consider.
Intended for those with limited-poor credit, the card requires a security deposit ranging from $200 to $5,000 — which will serve as your line of credit. And 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 the Navy Federal cashRewards Credit Card.
The Navy Federal nRewards® Secured Credit Cardholders earn 1X points per dollar spent, which can be redeemed for gift cards, cash and merchandise.
The card also comes with a $0 annual fee and an 18.00% variable purchase APR.
Minimum deposit: $200
Credit limit: $200 minimum, no set maximum
Why we picked this card: If you qualify for membership with Navy Federal Credit Union, the Navy Federal nRewards® Secured Credit Card offers a chance to build credit with a transparent schedule on when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
Builds credit history Chance to graduate to an unsecured card Reasonable 18.00% variable APR $0 annual fee $0 foreign transaction fee Earns rewards | NFCU membership requires a military connection Credit check and hard inquiry required Rewards expire after four years |
If you or a family member are part of the armed forces, Department of Defense or National Guard, the Navy Federal nRewards® Secured Credit Card should be on your list of secured credit cards to consider.
Intended for those with limited-poor credit, the card requires a security deposit ranging from $200 to $5,000 — which will serve as your line of credit. And 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 the Navy Federal cashRewards Credit Card.
The Navy Federal nRewards® Secured Credit Cardholders earn 1X points per dollar spent, which can be redeemed for gift cards, cash and merchandise.
The card also comes with a $0 annual fee and an 18.00% variable purchase APR.
Minimum deposit: $200
Credit limit: $200 minimum, no set maximum
Why we picked this card: If you qualify for membership with Navy Federal Credit Union, the Navy Federal nRewards® Secured Credit Card offers a chance to build credit with a transparent schedule on when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
Earn generous rewards for spending Builds business credit Path to upgrade to an unsecured business credit card | Minimum deposit of $1,000 required Credit check and hard inquiry required Charges 3% of the U.S. dollar amount of each transaction. foreign transaction fee High variable APR |
Small business owners and entrepreneurs can choose from a few different secured business credit cards, including the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card. We believe this card is ideal for business owners who have at least $1,000 in business funds to put down as a security deposit, as well as those who want to earn unlimited 1.5% cash back on all purchases for each dollar their business spends.
Bank of America also says they periodically review accounts to see if the cardholder is eligible for an upgrade to an unsecured business card, at which point they get their deposit back.
Even so, it’s important to note this card’s high variable APR of 24.49% variable on purchases. This makes the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card a poor option for carrying a balance.
Minimum deposit: $200
Credit limit: $200 minimum, no set maximum
Why we picked this card: If you qualify for membership with Navy Federal Credit Union, the Navy Federal nRewards® Secured Credit Card offers a chance to build credit with a transparent schedule on when you’ll be considered for an upgrade to an unsecured card.
| Pros | Cons |
|---|---|
Earn generous rewards for spending Builds business credit Path to upgrade to an unsecured business credit card | Minimum deposit of $1,000 required Credit check and hard inquiry required Charges 3% of the U.S. dollar amount of each transaction. foreign transaction fee High variable APR |
Small business owners and entrepreneurs can choose from a few different secured business credit cards, including the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card. We believe this card is ideal for business owners who have at least $1,000 in business funds to put down as a security deposit, as well as those who want to earn unlimited 1.5% cash back on all purchases for each dollar their business spends.
Bank of America also says they periodically review accounts to see if the cardholder is eligible for an upgrade to an unsecured business card, at which point they get their deposit back.
Even so, it’s important to note this card’s high variable APR of 24.49% variable on purchases. This makes the Business Advantage Unlimited Cash Rewards Mastercard® Secured credit card a poor option for carrying a balance.
| Credit Card | Welcome Offer | Rewards Rate | Annual Fee | Regular APR | Intro Balance Transfer Rate | Regular Balance Transfer Rate | Balance Transfer Fee | Recommended Credit | Card Review |
|---|---|---|---|---|---|---|---|---|---|
|
Discover it® Secured Credit Card
|
Discover will match all the cash back you’ve earned at the end of your first year. | 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 | 25.99% Variable APR | 10.99% Intro APR for 6 months | 25.99% Variable APR | 3% intro balance transfer fee, up to 5% fee on future balance transfers (see terms)* | Poor/Limited | Discover it® Secured Credit Card Review |
|
Capital One Platinum Secured Credit Card
|
No bonus | Non-rewards Card | $0 | 28.49% (Variable) | N/A | 28.49% (Variable) | $0 at this Transfer APR | Poor/Limited | Capital One Platinum Secured Credit Card Review |
|
DCU Visa® Platinum Secured Credit Card
|
N/A | N/A | $0 | 13.75% to 18% (variable) | N/A | 13.75% to 18% (variable) | None | Poor | DCU Visa® Platinum Secured Credit Card Review |
|
Capital One Quicksilver Secured Cash Rewards Credit Card
|
N/A | 1.5% Cash Back on every purchase, every day; 5% Cash Back on hotels and rental cars booked through Capital One Travel (terms apply) | $0 | 28.49% (Variable) | N/A | 28.49% (Variable) | $0 at this Transfer APR | Poor/Limited | Capital One Quicksilver Secured Cash Rewards Credit Card Review |
|
U.S. Bank Cash+ Visa Secured Card
|
No bonus | 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 | $0 | 28.24% variable | N/A | 28.24% variable | 3% of the amount of each transfer or $5 minimum, whichever is greater | limited-poor | Review Coming Soon |
|
U.S. Bank Altitude Go Visa Secured Card
|
No bonus | 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases | $0 | 28.24% variable | N/A | 28.24% variable | 3% of the amount of each transfer or $5 minimum, whichever is greater | limited-poor | Review Coming Soon |
|
Bank of America® Customized Cash Rewards Secured Credit Card
|
N/A | 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings | $0 | 24.24% variable | N/A | 24.24% variable | 3% of each transaction (minimum $10) | Excellent/Good | Review Coming Soon |
|
OpenSky® Secured Visa® Credit Card
|
N/A | None | $35 | 18.89% (variable) | N/A | N/A | N/A | Poor/Limited | OpenSky® Secured Visa® Credit Card Review |
|
Secured Sable ONE Credit Card
|
N/A | 2% cash back on everyday purchases at Amazon, Uber, Uber Eats, Whole Foods, Netflix, Spotify, and more! Plus, earn 1% cash back on all other purchases. | $0 | Prime + 6.99% (Variable) | N/A | N/A | N/A | Limited | Secured Sable ONE Credit Card Review |
|
Navy Federal nRewards® Secured Credit Card
|
N/A | 1X points per dollar spent | $0 | 18.00% variable | N/A | 18.00% variable | 0% | limited-poor | Review Coming Soon |
The information related to the DCU Visa® Platinum Secured Credit Card, U.S. Bank Cash+ Visa Secured Card, U.S. Bank Altitude Go Visa Secured Card, Bank of America® Customized Cash Rewards Secured Credit Card, Navy Federal nRewards® Secured Credit Card and the Wells Fargo Business 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.
A secured credit card is a type of credit card that requires a cash deposit as collateral upfront. This cash deposit is used to secure your line of credit, and will often be equal to the new credit limit you qualify for. If you put down a cash deposit of $500, for example, you’ll typically start off with a new secured card limit of $500.
While putting down a cash deposit may not seem ideal, secured credit cards accept a wider range of applicants than unsecured cards do. Typically, you can be approved for a secured credit card if you have limited credit, bad credit, or even no credit history at all.
The best secured credit cards report your credit activity to the three major credit bureaus (Equifax, Experian and TransUnion). And after demonstrating responsible card usage for a period of time — meaning, paying your bill on time each month and staying well below your credit limit — many secured credit cards will allow you to graduate to an unsecured card and refund your security deposit.
You may wonder if there are unsecured credit cards (cards with no deposit) that allow you to qualify with a poor credit score. Such cards do exist and may seem tempting, since they don’t require a security deposit. But because these cards are often laden with expensive fees, we typically recommend avoiding them.
For example, you might encounter an unsecured card designed for those with bad credit that charges a setup fee, an annual fee, monthly maintenance fees, a fee to add an authorized user and more. By contrast, a secured credit card with no annual fee or a low annual fee — and transparent terms — can be a better tool overall.
| Secured credit cards | Unsecured credit cards for bad credit | |
|---|---|---|
| Report activity to credit bureaus | ||
| Can earn rewards | ||
| Require a security deposit | ||
| Often come with high fees | ||
| Credit limit based on your deposit (usually) | ||
| Credit limit based on your creditworthiness | ||
| Some don't require a credit check |
Secured credit cards are primarily best for two types of consumers: individuals with low credit scores due to mistakes in the past, and consumers with no credit history or limited credit history. But whether you’re looking to rebuild, establish or build your credit with the help of a secured credit card, it’s crucial to practice responsible card usage while doing so — by paying at least the minimum amount due on time each month and staying below your credit limit.
When deciding which secured credit card is best for you, ask the following questions:
As with any credit card application, you’ll have to provide some personal and financial information when applying for a secured credit, such as:
If you’re approved for a secured credit card, you’ll have to submit your security deposit to the issuer before actually getting the card. This can typically be done from a bank account, and some issuers may offer other options as well, such as funding the deposit with a money order or via Western Union.
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:
Pay on timeThe most important factor in improving your credit score is to always pay on time; 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.
Keep your credit utilization lowNext, pay attention to your utilization. This essentially means how much of your available credit you’re using. The closer you are to maxing out your credit card, the more your credit score will suffer, because this indicates to lenders there’s more risk you might not pay what you owe. 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.
Avoid applying for too many cardsIn 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 — and each hard inquiry can be expected to knock your credit score down a few points for a year. Plus, opening new cards reduces your average age of accounts, and a longer average age of accounts is better for your score.
Some issuers provide the opportunity to graduate from a secured credit card to an unsecured one, meaning your deposit will be refunded. Both Discover and NFCU offer clear timelines for when you might get upgraded to an unsecured card.
Some issuers don’t offer a chance to move to an unsecured card. In that case, your best bet may be to build credit with the secured card for a year or more, and once you’ve improved your credit score, open an unsecured card. If you pay off your secured card in full and close the account, you should be able to get your deposit back.
If your issuer allows upgrades to an unsecured card, the following tips will improve your chances:
If you don’t have $200 or $300 available for a minimum security deposit, or if you simply want to consider all your alternatives, here are a few other options to check out.
A secured card requires you to submit a security deposit, typically in the amount you want for your credit limit. This protects the issuer in the event you don’t pay off what you charge to the card. The deposit is generally refundable if you pay off your card and close the account, or the issuer graduates you to an unsecured card.
“Unsecured” simply means a credit card doesn’t require a security deposit – in other words, a regular credit card.
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.
Yes. As with any credit card application, approval when applying for a secured credit card is not guaranteed.
Generally, yes. 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.
Many banks and credit unions offer secured cards. A few issuers of secured cards include Bank of America, Capital One, Citi and Discover. However, some issuers don’t – for example, there’s no Chase secured credit card.
As long as your card reports to the credit bureaus (Equifax, Experian and TransUnion), you’ll build a credit history by using your card, paying on time and keeping utilization low.
Any credit card that reports to the three credit bureaus can help you build credit. However, the best secured credit cards give you the chance to build credit when you can’t seem to get approved for better, unsecured options. They do this by offering easier approvals to individuals with bad credit and no credit.
Banks that offer secured credit cards include Bank of America, Discover, Capital One, U.S. Bank and more.
Security deposits are refundable. To get it back, you must pay your card balance in full and close your secured credit card account.
Many secured credit cards also provide the opportunity to graduate to an unsecured card — at which point your security deposit will be refunded.
Yes, you can be denied a secured credit card if you don’t meet the minimum requirements for approval — which varies by issuer. For example, Discover shares on its website that you can be denied its secured card based on information in your credit reports:
“To determine if you qualify for an account, we review the information that you provide on the application, information in your credit report, as well as other information we may have about your creditworthiness. If you are not approved, we will provide you with the score we obtained, which credit reporting agency it was obtained from, and the reasons we could not approve your application.”
Even the best secured credit card in the world only has the amount of power you give it. For example, you can use a secured credit card to 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 pay bills after their due date.
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.
Chase is well known for its popular travel and rewards credit cards, yet this major bank does not currently issue a secured credit card.
Wells Fargo does not offer secured credit cards to new applicants at this time.
American Express does not offer a secured credit card of its own.
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.
The best secured credit cards can be good for your finances if you use them wisely. This means keeping your credit utilization rate low, minimizing interest charges and fees and paying your credit card bill in full and on time each month.
The most obvious criterion for selecting the credit cards on this list is that all 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.
We also evaluated rewards programs. 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, and the one that does (the OpenSky® Secured Visa® Credit Card) offers 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 also weighed in favor of including the card here.
Additional reporting by Holly Johnson.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
