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If you’re looking to build credit, odds are you’ve come across secured cards in your search. Whether you’ve got bad credit or just a limited credit history, a secured card might be the best option for you.
A secured card is similar to a regular, unsecured credit card, but it has one main difference: it requires a security deposit. The security deposit will become your line of credit and is typically $200 – so that means you will receive a $200 line of credit.
The security deposit acts as collateral in case you default on your account, providing security for the lending bank. In most cases, you can receive your security deposit back if you pay off your bill in full and close your account or you transition to an unsecured card.
Based on our review of cards available through LendingTree, as well as from major issuers, we’ve selected six of the best secured cards to consider. Most of these charge no annual fee, and the ones that do charge an annual fee offer enough value to make the fee worth it.
| Best Secured Credit Cards | |
| Best secured card for cash back | Discover it® Secured Credit Card |
| Best low deposit secured card | Secured Mastercard® from Capital One |
| Best secured card for no credit check | OpenSky® Secured Visa® Credit Card |
| Best low APR secured card | DCU Visa® Platinum Secured Credit Card |
| Best secured card for online shopping | Amazon Secured Card |
| Best business secured card | Wells Fargo Business Secured Credit Card |
Many secured cards lack rewards, but the Discover it® Secured Credit Card offers a cashback program: 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.
There’s also a sign-up bonus for new cardmembers: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Finally, Discover starts monthly reviews after eight months to see if you qualify to graduate to an unsecured card and have your security deposit refunded. Note that Discover considers your behavior across all your credit accounts in these reviews, not just accounts with Discover.
The annual fee is $0 and the deposit can range from $200 to $2,500.
The Discover it® Secured Credit Card is designed for people with limited/bad/poor credit who want a card that earns rewards and offers a set time frame for when the issuer considers upgrading you to an unsecured card, allowing you to get your deposit refunded.
This is an all-around great card to build credit. Its only drawback is a high 22.99% Variable APR. However, that’s in line with other cards for applicants with limited/bad/poor credit. By paying off your card in full each month, you can generally avoid interest charges.
Discover it® Secured Credit Card benefits include:
Many secured cards lack rewards, but the Discover it® Secured Credit Card offers a cashback program: 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.
There’s also a sign-up bonus for new cardmembers: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Finally, Discover starts monthly reviews after eight months to see if you qualify to graduate to an unsecured card and have your security deposit refunded. Note that Discover considers your behavior across all your credit accounts in these reviews, not just accounts with Discover.
The annual fee is $0 and the deposit can range from $200 to $2,500.
The Discover it® Secured Credit Card is designed for people with limited/bad/poor credit who want a card that earns rewards and offers a set time frame for when the issuer considers upgrading you to an unsecured card, allowing you to get your deposit refunded.
This is an all-around great card to build credit. Its only drawback is a high 22.99% Variable APR. However, that’s in line with other cards for applicants with limited/bad/poor credit. By paying off your card in full each month, you can generally avoid interest charges.
Discover it® Secured Credit Card benefits include:
Most secured cards require you to submit a security deposit in the amount of your credit limit – in other words, for a $200 credit limit, submit a $200 deposit. The Secured Mastercard® from Capital One is unique in that when you apply, Capital One will set your minimum deposit at either $49, $99 or $200. In any case, you’ll get a starting credit limit of $200.
The lower deposit amounts of $49 and $99 aren’t guaranteed, however. Also, the card comes with a high 26.99% (variable) APR.
You may also be considered for a higher credit limit in as little as six months.
The card’s annual fee is $0 and the maximum deposit is $1,000.
The Secured Mastercard® from Capital One is best for consumers looking for an opportunity to rebuild their credit with a secured card, but who want to see if they can qualify for a security deposit lower than the standard $200. While there is no guarantee you’ll be approved for a lower deposit, if you do qualify, you’ll still be granted a $200 credit limit. Capital One also allows your deposit to be paid over time, as long as you pay the full amount within 35 days of being approved for the card. (Each payment must be at least $20 and must be in whole dollar increments.)
Capital One may also review your account for on-time payments and decide that you’re eligible to upgrade to an unsecured card and have your deposit refunded. However, be aware that there’s no set time frame for that review. However, you can get access to a higher credit line after making your first five monthly payments on time.
Secured Mastercard® from Capital One benefits include:
Most secured cards require you to submit a security deposit in the amount of your credit limit – in other words, for a $200 credit limit, submit a $200 deposit. The Secured Mastercard® from Capital One is unique in that when you apply, Capital One will set your minimum deposit at either $49, $99 or $200. In any case, you’ll get a starting credit limit of $200.
The lower deposit amounts of $49 and $99 aren’t guaranteed, however. Also, the card comes with a high 26.99% (variable) APR.
You may also be considered for a higher credit limit in as little as six months.
The card’s annual fee is $0 and the maximum deposit is $1,000.
The Secured Mastercard® from Capital One is best for consumers looking for an opportunity to rebuild their credit with a secured card, but who want to see if they can qualify for a security deposit lower than the standard $200. While there is no guarantee you’ll be approved for a lower deposit, if you do qualify, you’ll still be granted a $200 credit limit. Capital One also allows your deposit to be paid over time, as long as you pay the full amount within 35 days of being approved for the card. (Each payment must be at least $20 and must be in whole dollar increments.)
Capital One may also review your account for on-time payments and decide that you’re eligible to upgrade to an unsecured card and have your deposit refunded. However, be aware that there’s no set time frame for that review. However, you can get access to a higher credit line after making your first five monthly payments on time.
Secured Mastercard® from Capital One benefits include:
The OpenSky® Secured Visa® Credit Card is aimed at applicants with limited/bad/poor credit, and unlike most credit cards, doesn’t require a credit check when you apply. If you worry that something in your credit history might prevent you from being approved, this could be the card for you.
Note that you’ll still have to submit financial information when you apply, such as:
The card’s deposit can range from $200 to $3,000. The interest rate is a reasonable 17.39% (variable) APR.
There’s a $35 annual fee for the OpenSky® Secured Visa® Credit Card. Know that there are competing secured cards available with no annual fee.
Also, there’s a foreign transaction fee of 3% of each Transaction in U.S. dollars, and there’s no opportunity to graduate to an unsecured version of the card.
The OpenSky® Secured Visa® Credit Card is designed for those who want to build or rebuild their credit profile with a secured card, but don’t want to undergo a credit check. When you apply for any type of credit, the issuer typically conducts a hard pull of your credit report to determine your creditworthiness. Each hard pull can ding your score a few points and stays on your credit report for two years, although its negative impact only lasts a year. If you don’t have a credit history at all or if you want to avoid that hard pull, the OpenSky® Secured Visa® Credit Card can be a good option.
OpenSky® Secured Visa® Credit Card benefits:
The OpenSky® Secured Visa® Credit Card is aimed at applicants with limited/bad/poor credit, and unlike most credit cards, doesn’t require a credit check when you apply. If you worry that something in your credit history might prevent you from being approved, this could be the card for you.
Note that you’ll still have to submit financial information when you apply, such as:
The card’s deposit can range from $200 to $3,000. The interest rate is a reasonable 17.39% (variable) APR.
There’s a $35 annual fee for the OpenSky® Secured Visa® Credit Card. Know that there are competing secured cards available with no annual fee.
Also, there’s a foreign transaction fee of 3% of each Transaction in U.S. dollars, and there’s no opportunity to graduate to an unsecured version of the card.
The OpenSky® Secured Visa® Credit Card is designed for those who want to build or rebuild their credit profile with a secured card, but don’t want to undergo a credit check. When you apply for any type of credit, the issuer typically conducts a hard pull of your credit report to determine your creditworthiness. Each hard pull can ding your score a few points and stays on your credit report for two years, although its negative impact only lasts a year. If you don’t have a credit history at all or if you want to avoid that hard pull, the OpenSky® Secured Visa® Credit Card can be a good option.
OpenSky® Secured Visa® Credit Card benefits:
Best for: Consumers who like banking with Bank of America.
Why we like it: If you prefer to keep your financial products with Bank of America, the BankAmericard® Secured Credit Card allows a deposit ranging from $300 to $4,900, and charges an annual fee of $-00. Bank of America also periodically reviews your credit history to see if you qualify to have your deposit refunded.
What to watch out for: There’s a high 25.24% APR, and the minimum deposit is a bit on the high side at $300. There’s also a foreign transaction fee: 3%
Other benefits:
The information related to the BankAmericard® Secured Credit Card has been independently collected by LendingTree and has not been reviewed or provided by the issuer of this card prior to publication.
Best for: Consumers looking for a no-frills secured card to build credit.
Why we like it: This card is pretty basic, but if you think rewards might tempt you into overspending, basic isn’t bad. There’s a $0 annual fee and a deposit range of $200 to $2,500. Your deposit will stay in a Collateral Holding Account for 18 months, and before that term ends, Citi will notify you if you qualify to get the deposit refunded and graduate to an unsecured card.
What to watch out for: There’s a high 22.49% (variable) APR and a foreign transaction fee of 3%.
Other benefits:
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.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
