Apply Now
The Discover it® Secured Credit Card is our top pick. It charges no annual fee and offers cash back on every purchase, including a higher rewards rate at gas stations and restaurants. On top of that, Discover reviews your account regularly to see if you can qualify for an unsecured card and get your security deposit back.
| Credit Cards | Our Ratings | Minimum deposit | Rewards Rate | Regular APR | |
|---|---|---|---|---|---|
Discover it® Secured Credit Card
Apply Now
on Discover's secure site Rates & Fees |
Winner
|
$200 | 1% - 2% cash back
| 27.24% Variable APR |
Apply Now
on Discover's secure site Rates & Fees |
Capital One Platinum Secured Credit Card
|
Low security deposit
|
$49 | N/A | 29.74% (Variable) | |
DCU Visa® Platinum Secured Credit Card*
|
Low APR
|
$500 | N/A | 15.75% (variable) | |
Capital One Quicksilver Secured Cash Rewards Credit Card
|
Cash back rewards
|
$200 | 1.5% - 5% Cash Back
| 29.74% (Variable) | |
U.S. Bank Altitude Go Visa Secured Card*
|
Dining rewards
|
$300 | 1X - 4X points
| 29.24% | |
U.S. Bank Cash+ Visa Secured Card*
|
Flexible rewards
|
$300 | 1% - 5% cash back
| 29.24% | |
OpenSky® Secured Visa® Credit Card
Apply Now
on Capital Bank, N.A.'s secure site |
No credit check
|
$200 | 10% cash back
Up to 10% cash back rewards
| 24.64% (variable) |
Apply Now
on Capital Bank, N.A.'s secure site |
Secured Self Visa® Credit Card*
|
No hard credit check and low deposit
|
$100 | N/A | 28.24% Variable | |
Navy Federal nRewards® Secured Credit Card*
|
Military members
|
$200 | 1X points
1X points per dollar spent
| 18.00% variable | |
Amazon Secured Card*
|
store secured card
|
$100 | 2% cash back
2% back at Amazon.com and Whole Foods Market with an eligible Prime membership
| 10.00% non-variable |
To bring you the list of the best secured cards, we use an objective rating and ranking system that compares features across a large set of credit cards (over 200 from over 50 issuers). We use calculations to estimate the value of each card for the average cardholder, based on LendingTree and U.S. Bureau of Labor Statistics data.
For credit-building cards in particular, we devote a large part of the score to features that help build credit — we want to help you locate cards that don’t cost a lot to own and provide help so you can upgrade to better card offers.
We rank cards based on the following criteria:
We calculate how much the average cardholder can save with the card on a yearly basis. If it’s a rewards card, we use U.S. Bureau of Labor Statistics data and $300 in monthly spending (the typical starting credit limit for an introductory card) to calculate how much the average cardholder can earn in rewards. We then subtract fees — including annual fees and maintenance fees — from this amount.
We give points for features that help build credit, including reports to all three credit bureaus, regular account reviews for card upgrades and free credit score access. We take away points for features that can be costly to cardholders trying to build credit, such as security deposits, penalty APRs and late payment fees.
Note that our ratings are a starting point for comparing and choosing the best credit card for building credit. However, your needs may be different from the average cardholder. You should consider the amount you’re likely to spend in a card’s bonus categories and which benefits you value to choose the best card for you.
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. Apply Now
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 on the market. There’s no annual fee, and you can earn cash back rewards. After just seven months, Discover will automatically begin conducting monthly account reviews to see if you’re eligible to graduate to an unsecured card and get your deposit refunded.
You’ll earn bonus rewards in two popular spending categories – 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. Discover’s Cash Back Match feature also applies on this card, doubling any earnings you make at the end of your first year.
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 credit challenges. After the intro period, a 27.24% 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.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 at least a $200 initial 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 an annual fee or foreign transaction fees.
Keep in mind that this card has a high 29.74% (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.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 15.75% (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.Minimum deposit: $200
Credit limit: Put down a refundable $200 security deposit to get at least a $200 initial credit line.
The Capital One Quicksilver Secured Cash Rewards Credit Card earns unlimited cash back on every purchase at a 1.5% 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 29.74% (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 in as little as six months.
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 points at grocery stores and gas stations/EV charging stations, 1X on all other eligible purchases. You’ll also get a $15 annual credit on streaming purchases, allowing you to put even more money back in your pocket. The U.S. Bank Altitude Go Visa 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 a high APR of 29.24%.
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. Apply Now
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 24.64% (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.Minimum deposit: $100
Credit limit: $100 minimum credit limit
The Secured Self Visa® Credit Card is a secured credit card with a minimum security deposit of just $100. It has no rewards program or sign-up bonus, so it’s a simple card designed to help you build credit. It also 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.Minimum deposit: $200
Credit limit: $200 to $5,000
The Navy Federal nRewards® Secured Credit Card is a very affordable secured credit card – but you’ll need a military affiliation to qualify. The card has a $0 annual fee, a low 18.00% variable APR, and a rewards program. Cardholders can earn one point for every dollar spent, which isn’t the best offer around, but it’s a nice-to-have feature when paired with a no annual fee, low APR secured card.
There are also no fees for other activities like transferring a balance, using the card abroad, or getting a cash advance.
After just three months of responsible credit use, Navy Federal may begin to increase your credit line beyond your security deposit amount. Then, after six months, Navy Federal will automatically review your account to see if you’re eligible 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.Minimum deposit: $100
Credit limit: $100 to $1,000
If you’re an Amazon Prime member and frequent shopper who is looking to build up your credit, the Amazon Secured Card is a worthwhile option to explore. As a store card, you can only use it at Amazon.com and Whole Foods, but you’ll get 2% back on those purchases.
The card has no annual fee and the lowest purchase APR of any card in this review. Though it takes a bit longer (a minimum of one year) to graduate to the unsecured version of this card, if you’re an Amazon loyalist, the increased rewards rate of 5% may be worth the wait.
Another unique feature is that you can make a deposit from $100 up to your approved credit limit amount (in $50 increments); your deposit amount will become your credit limit.
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.
The best secured credit cards will report your credit activity to the three major credit bureaus: Equifax, Experian and TransUnion. Many secured credit cards offer regular reviews of your account after a period of time. Customers who pay their bills on time and stay well below their credit limit may graduate to an unsecured card.
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 annual fee or a 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 |
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:
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 time
The most important factor in improving your credit score is to always pay your card 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.
Keep your utilization low
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.
Avoid applying for too many cards
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.
Check your credit report
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. For example, Discover and Navy Federal Credit Union offer clear timelines for account reviews and upgrades.
Others, like Capital One, offer the opportunity to graduate to an unsecured card, but may not specify a timeline for reviews. Capital One 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 your issuer doesn’t offer a chance to move to an unsecured card, you can build credit with a secured credit card for a year or more, and then apply for an unsecured card on your own. Once you pay off your secured card in full and close the account, you should get your deposit back.
If you don’t want to put cash down for a security deposit, there are other options to explore if you have a limited credit history or lower score:
Become an authorized user on someone else’s credit card.
If a parent, spouse or other family member can add you as an authorized user on their credit card, many major card issuers will give you the benefit of their credit history and on-time payments. You don’t even need to use the card. Just make sure the primary cardholder has responsible usage and good credit history, or they could end up hurting your credit score.
Apply for a store credit card.
It can be easier for applicants with less than stellar credit to be approved for store credit cards, from retailers like Target, Lowe’s and Kohl’s. You’ll typically get a low credit limit at first, but these cards do give you the chance to build your credit score over time.
Consider student credit cards.
If you’re a college student with limited credit history, you can also look into student credit cards. You must be at least 18 years old and have a source of income to qualify for a student credit card, and you may have to verify your student status.
Look into personal loans.
A personal loan can help you build credit just like a credit card. If you do get a personal loan with a low credit score, you’ll typically pay higher fees and interest rates than someone with better credit.
Check out credit builder loans.
You may be able to find a credit builder loan through a bank, credit union or online lender. Unlike a traditional loan, you don’t get any money upfront. Instead, you’ll receive your loan amount after finishing your payment plan. Credit builder loans aren’t free — you’ll likely have to pay interest and possibly fees for opening the account. However, your on-time payments will be reported to the credit bureaus, hopefully raising your credit score.
Some secured cards charge annual fees, while others don’t. Many of the best secured credit cards, like the Discover it® Secured Credit Card, have 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 closed 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.
There is no telling how high or how quickly your credit score may go up by using a secured credit card since every card user’s credit status is unique. However, you should see incremental improvements over time as you make payments on time and if you keep your balance low. Keep in mind you can also see your credit score drop if you max out your secured credit card limit or make late payments.
Yes, it’s possible to be turned down when you apply for 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. If the reason you were rejected doesn’t make sense, you can call the credit card reconsideration line and explain why you believe you should qualify for the card.
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, Secured Self Visa® Credit Card, Navy Federal nRewards® Secured Credit Card and Amazon Secured Card has been independently 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.
