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July 1, 2022
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This article was last updated July 1, 2022 . Terms and conditions may have changed. For the most accurate information, please consult the issuer website.
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 you’re looking to build credit because you’ve got a bad credit score or just limited credit history, a secured credit card might be the best option for you.
The reason they’re called “secured” credit cards is because you must submit a security deposit to the issuer, typically in the amount of your desired credit limit. The security deposit required on a secured card 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.
A secured card can be a good tool to improve your credit score. Some issuers even offer the chance to graduate to an unsecured card and get your deposit refunded after showing responsible behavior.
We’ll go over some of the best secured cards and help you choose the one that’s right for your wallet.
Credit needed: Poor/Limited
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.
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If you have poor/limited credit, can put together $200 for a minimum deposit and would like the opportunity to graduate to an unsecured card, the Discover it® Secured Credit Card is well worth your consideration. Whereas some issuers offer the chance to graduate but don’t specify when account reviews occur, Discover is clear that you’ll get monthly account reviews after seven months with the card.
Cardholders 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.
Credit needed: Poor/Limited
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.
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If you have poor/limited credit, can put together $200 for a minimum deposit and would like the opportunity to graduate to an unsecured card, the Discover it® Secured Credit Card is well worth your consideration. Whereas some issuers offer the chance to graduate but don’t specify when account reviews occur, Discover is clear that you’ll get monthly account reviews after seven months with the card.
Cardholders 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.
Credit needed: Limited/Bad
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.
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If you think you’ll have trouble putting together a $200 deposit, the Capital One Platinum Secured Credit Card could be right for you. Capital One offers the chance to qualify for a $49 or $99 minimum deposit instead, and if you qualify, you’ll still get a $200 starting credit limit. Just note it isn’t guaranteed that you’ll get one of the lower deposits, and if you don’t, you’ll have to make the minimum $200 deposit.
Credit needed: Limited/Bad
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.
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If you think you’ll have trouble putting together a $200 deposit, the Capital One Platinum Secured Credit Card could be right for you. Capital One offers the chance to qualify for a $49 or $99 minimum deposit instead, and if you qualify, you’ll still get a $200 starting credit limit. Just note it isn’t guaranteed that you’ll get one of the lower deposits, and if you don’t, you’ll have to make the minimum $200 deposit.
Credit needed: poor
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 interest rate of 12.25% variable in a world where many secured cards have interest rates well above 20%.
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If you think you’ll need to roll a balance over from month to month, you’ll want a low interest credit card such as the DCU Visa® Platinum Secured Credit Card. You do have to join Digital Federal Credit Union (DCU), but luckily, there are many ways to qualify for membership.
Credit needed: poor
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 interest rate of 12.25% variable in a world where many secured cards have interest rates well above 20%.
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If you think you’ll need to roll a balance over from month to month, you’ll want a low interest credit card such as the DCU Visa® Platinum Secured Credit Card. You do have to join Digital Federal Credit Union (DCU), but luckily, there are many ways to qualify for membership.
Credit needed: Limited/Bad
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.
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If you want to earn cash back but don’t have set spending categories, you’ll like the Capital One Quicksilver Secured Cash Rewards Credit Card‘s rewards program — 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).
Credit needed: Limited/Bad
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.
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If you want to earn cash back but don’t have set spending categories, you’ll like the Capital One Quicksilver Secured Cash Rewards Credit Card‘s rewards program — 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).
Credit needed: limited-poor
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: The U.S. Bank Cash+ Visa Secured Card allows you to choose two categories that will earn 5% cash back.
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Not too long ago, earning 5% cash back with a secured credit card would have been unheard of. Now, if you want to build credit and earn rewards at a generous rate typically reserved for unsecured cards, you can apply for the U.S. Bank Cash+ Visa Secured Card. Options for the 5% category include:
Credit needed: limited-poor
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: The U.S. Bank Cash+ Visa Secured Card allows you to choose two categories that will earn 5% cash back.
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Not too long ago, earning 5% cash back with a secured credit card would have been unheard of. Now, if you want to build credit and earn rewards at a generous rate typically reserved for unsecured cards, you can apply for the U.S. Bank Cash+ Visa Secured Card. Options for the 5% category include:
Credit needed: limited-poor
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: 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.
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Cardholders with the U.S. Bank Altitude Go Visa Secured Card earn 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
If you’re a foodie looking to build credit, this card is hard to beat. Plus, there’s a $15 annual streaming credit that can be earned after 11 consecutive months of eligible streaming purchases.
Credit needed: limited-poor
Minimum deposit: $300
Credit limit: $300 to $5,000
Why we picked this card: 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.
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Cardholders with the U.S. Bank Altitude Go Visa Secured Card earn 4X points on dining and takeout, 2X at grocery stores, gas stations and on streaming services, 1X on all other purchases.
If you’re a foodie looking to build credit, this card is hard to beat. Plus, there’s a $15 annual streaming credit that can be earned after 11 consecutive months of eligible streaming purchases.
Credit needed: limited-poor
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.
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Consumers whose spending patterns fluctuate will appreciate this card’s cash back program. 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. You can change your 3% category as often as once a month. Options for 3% include:
Credit needed: limited-poor
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.
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Consumers whose spending patterns fluctuate will appreciate this card’s cash back program. 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. You can change your 3% category as often as once a month. Options for 3% include:
Credit needed: Poor/Limited
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.
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If you’re worried that damaged credit might prevent you from getting approved for other cards, you might like the OpenSky® Secured Visa® Credit Card — you can apply with no credit check. You will, however, have to supply financial information such as annual income and monthly housing payment.
Credit needed: Poor/Limited
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.
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If you’re worried that damaged credit might prevent you from getting approved for other cards, you might like the OpenSky® Secured Visa® Credit Card — you can apply with no credit check. You will, however, have to supply financial information such as annual income and monthly housing payment.
Credit needed: new-to-credit,-no-credit,-rebuilding-credit
Minimum deposit: No minimum
Credit limit: No minimum, $10,000 maximum
Why we picked this card: The Secured Sable ONE Credit Card is accessible to non-U.S. citizens living in the U.S., even if you don’t have a Social Security number. Plus, it doesn’t require a credit check to apply.
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Whether you’re a U.S. citizen or not, the Secured Sable ONE Credit Card is a credit-building tool worth considering. You can apply with no credit check, and there’s no minimum deposit. However, be aware that you must open a Sable bank account to make the security deposit for the Secured Sable ONE Credit Card.
Cardholders earn rewards: 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.
Credit needed: new-to-credit,-no-credit,-rebuilding-credit
Minimum deposit: No minimum
Credit limit: No minimum, $10,000 maximum
Why we picked this card: The Secured Sable ONE Credit Card is accessible to non-U.S. citizens living in the U.S., even if you don’t have a Social Security number. Plus, it doesn’t require a credit check to apply.
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Whether you’re a U.S. citizen or not, the Secured Sable ONE Credit Card is a credit-building tool worth considering. You can apply with no credit check, and there’s no minimum deposit. However, be aware that you must open a Sable bank account to make the security deposit for the Secured Sable ONE Credit Card.
Cardholders earn rewards: 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.
Credit needed: limited-poor
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.
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You must join NFCU to apply for the Navy Federal nRewards® Secured Credit Card. Membership is open to U.S. military members and veterans, family members and U.S. Department of Defense civilians. If you qualify to join, this card is an excellent choice with which to build credit.
Cardholders earn 1X points per dollar spent. Starting at six months, NFCU will begin monthly reviews to see if you qualify to graduate to an unsecured card and get your deposit refunded.
Credit needed: limited-poor
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.
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You must join NFCU to apply for the Navy Federal nRewards® Secured Credit Card. Membership is open to U.S. military members and veterans, family members and U.S. Department of Defense civilians. If you qualify to join, this card is an excellent choice with which to build credit.
Cardholders earn 1X points per dollar spent. Starting at six months, NFCU will begin monthly reviews to see if you qualify to graduate to an unsecured card and get your deposit refunded.
Credit needed: fair-poor
Minimum deposit: $500
Credit limit: $500 to $25,000
Why we picked this card: The Wells Fargo Business Secured Credit Card gives business owners with fair-poor credit a way to manage cash flow, in contrast with most business cards, which typically require good to excellent credit.
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If you need a card with which to manage your business’s cash flow, but are concerned past credit missteps might prevent you from getting an unsecured business credit card, the Wells Fargo Business Secured Credit Card might be right for you. It’s accessible with fair-poor credit.
Plus, cardholders earn rewards: Earn 1.5% cash back on every $1 spent OR Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period.
Wells Fargo will periodically review your account to see if you’re eligible to upgrade to an unsecured business credit card. However, there is no set time frame for when this might happen.
Credit needed: fair-poor
Minimum deposit: $500
Credit limit: $500 to $25,000
Why we picked this card: The Wells Fargo Business Secured Credit Card gives business owners with fair-poor credit a way to manage cash flow, in contrast with most business cards, which typically require good to excellent credit.
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If you need a card with which to manage your business’s cash flow, but are concerned past credit missteps might prevent you from getting an unsecured business credit card, the Wells Fargo Business Secured Credit Card might be right for you. It’s accessible with fair-poor credit.
Plus, cardholders earn rewards: Earn 1.5% cash back on every $1 spent OR Earn 1 point on every $1 spent and receive 1,000 bonus points when your company spend is $1,000 or more in any monthly billing period.
Wells Fargo will periodically review your account to see if you’re eligible to upgrade to an unsecured business credit card. However, there is no set time frame for when this might happen.
| Credit card | Best for | Minimum deposit | Annual fee |
|---|---|---|---|
| Discover it® Secured Credit Card | Overall secured credit card | $200 | $0 |
| Capital One Platinum Secured Credit Card | A chance for a low deposit | $49, $99 or $200 | $0 |
| DCU Visa® Platinum Secured Credit Card | A low interest rate | $500 | $0 |
| Capital One Quicksilver Secured Cash Rewards Credit Card | Flat-rate cash back | $200 | $0 |
| U.S. Bank Cash+ Visa Secured Card | 5% cash back | $300 | $0 |
| U.S. Bank Altitude Go Visa Secured Card | Dining rewards | $300 | $0 |
| Bank of America® Customized Cash Rewards Secured Credit Card | Flexible rewards | $300 | $0 |
| OpenSky® Secured Visa® Credit Card | No credit check | $200 | $35 |
| Secured Sable ONE Credit Card | Non-U.S. citizens | No minimum deposit | $0 |
| Wells Fargo Business Secured Credit Card | Small business owners | $500 | $0 |
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.
You might wonder if there are unsecured credit cards (cards with no deposit) you can qualify for with a poor credit score. Such cards exist, but we typically recommend avoiding them and getting a secured credit card instead. An unsecured card for bad credit may seem tempting because you don’t have to submit $200 or $300 for a minimum deposit, but you’ll likely pay more in the long run due to fees. For example, you might encounter fees including annual fees, monthly maintenance fees and an additional fee to add an authorized user. A good secured card with no annual fee or a low annual fee — and transparent terms — will be a better tool overall.
| Secured Credit Cards | Unsecured Credit Cards for Bad Credit | |
|---|---|---|
| Report activity to credit bureaus | X | X |
| Can earn rewards | X | X |
| Require a security deposit | X | |
| Often come with high fees | X | |
| Credit limit based on your deposit (usually) | X | |
| Credit limit based on your creditworthiness | X | |
| Some don't require a credit check | X |
When deciding what secured credit card is best for you, ask the following questions:
As with any credit card application, you’ll have to provide information such as the following:
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 your credit card issuer reports account and payment activity to the three major consumer credit bureaus — Equifax, Experian and TransUnion — 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; 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.
Next, 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.
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 — 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 simply don’t want to open a new credit card, there are a couple other ways to improve your credit score worth considering.
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 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 another 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.
The above offers and/or promotions may have since changed, expired, or is no longer available. Check the Issuers’ website for more details.
