Top 10 Secured Credit Cards
Secured credit cards are a type of credit card that require a cash deposit as collateral, which serves as a security for the issuer in case the cardholder defaults on their payments. Typically, the credit limit on the secured card is equal to the amount of the deposit, making it a safer option for both the lender and the borrower, especially for those with poor or no credit history.
Advertisement
These cards are often used as a tool to build or rebuild credit. When a user makes purchases and pays their bill on time, their payment history is reported to the credit bureaus, helping to improve their credit score over time. Secured credit cards function much like regular credit cards, allowing for online purchases, bill payments, and other transactions. Some even offer rewards or cash-back programs. However, they may come with higher fees and interest rates compared to unsecured cards. Responsible use of a secured credit card can eventually lead to qualifying for an unsecured credit card, which doesn't require a deposit and typically offers better terms and benefits.
Discover it® SecuredView AllDiscover it® Secured - Secured credit card with cash back and no annual fee.
Capital One Platinum Secured Credit CardView AllCapital One Platinum Secured Credit Card - Rebuild credit with refundable security deposit.
Citi® Secured Mastercard®View AllCiti® Secured Mastercard® - Credit-building card with security deposit, no annual fee.
OpenSky® Secured Visa® Credit CardView AllOpenSky® Secured Visa® Credit Card - No credit check required, refundable deposit, builds credit history.
BankAmericard® Secured Credit CardView AllBankAmericard® Secured Credit Card - Secured card for building or rebuilding credit history.
U.S. Bank Secured Visa® CardView AllU.S. Bank Secured Visa® Card - Rebuilds credit with a refundable security deposit.
Navy Federal nRewards® Secured Credit CardView AllNavy Federal nRewards® Secured Credit Card - Secured card building credit with rewards, Navy Federal members.
Wells Fargo Business Secured Credit CardView AllWells Fargo Business Secured Credit Card - Credit card for businesses, requires collateral, builds credit.
First Progress Platinum Prestige Mastercard® Secured Credit CardView AllFirst Progress Platinum Prestige Mastercard® Secured Credit Card - Secured card, builds credit, no credit history required.
Top 10 Secured Credit Cards
1.
Discover it® Secured
The Discover it® Secured Credit Card is designed for those looking to build or rebuild their credit. It requires a refundable security deposit as collateral, which typically matches the credit limit. Cardholders earn 2% cash back at gas stations and restaurants (up to a quarterly maximum) and 1% on all other purchases. Additional perks include no annual fee, free access to FICO® Credit Scores, and automatic reviews for account upgrade eligibility after seven months.
Pros
No annual fee-
Cash back rewards
-
Free FICO score
-
Reports to all three credit bureaus
-
Flexible security deposit.
Cons
High APR-
Requires refundable deposit
-
Limited initial credit line
-
Foreign transaction fee
-
No travel rewards.
2.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which determines your credit limit. With responsible use, you can improve your credit score over time. The card features no annual fee and provides access to credit monitoring tools and resources. It’s a straightforward option for those aiming to establish a positive credit history.
Pros
- Helps build credit
- refundable deposit
- no annual fee
- reports to major bureaus
- flexible deposit amounts
Cons
-
High APR
- no rewards
- minimum $49 deposit
- limited benefits
- foreign transaction fees
3.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is a credit-building tool designed for individuals with limited or no credit history. It requires a refundable security deposit, which sets the credit limit. This card offers access to FICO® score tracking and various Citi perks, including identity theft protection and 24/7 customer service. It reports to all three major credit bureaus, aiding in credit score improvement with responsible use. However, it doesn't offer rewards or cashback incentives.
Pros
-
Builds credit history
-
Low annual fee
-
Reports to all three credit bureaus
-
No penalty APR
-
Can graduate to unsecured card.
Cons
-
Requires security deposit
-
Limited rewards
-
High APR
-
No signup bonus
-
Limited additional benefits.
4.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. With no credit check required for approval, it offers an accessible option for those with poor or limited credit histories. Cardholders benefit from regular reporting to major credit bureaus, which can help improve credit scores over time. The card also features a modest annual fee but does not offer rewards.
Pros
-
No credit check required
-
Reports to all three major bureaus
-
Low annual fee
-
Flexible credit limits
-
Easy application process.
Cons
- **
No rewards program
-
High APR
-
No upgrade path
-
Requires a security deposit
-
Limited additional benefits.
5.
BankAmericard® Secured Credit Card
The BankAmericard® Secured Credit Card is a secured credit card designed to help individuals build or rebuild their credit history. It requires a refundable security deposit, which typically determines the credit limit. The card offers benefits such as free access to your FICO® Score, fraud protection, and the ability to transition to an unsecured card with responsible use. It also features relatively low fees compared to other secured cards, making it a practical option for credit improvement.
Pros
- Helps build credit
- refundable deposit
- reports to all three bureaus
- no annual fee
- access to FICO score.
Cons
- High APR
- no rewards
- security deposit required
- limited benefits
- foreign transaction fee.
6.
U.S. Bank Secured Visa® Card
The U.S. Bank Secured Visa® Card is designed for individuals looking to build or rebuild their credit. It requires a cash deposit as collateral, which also sets the credit limit. The card offers fraud protection, access to online banking tools, and free credit score monitoring. Additionally, it reports to all three major credit bureaus, helping users establish a positive credit history. There is an annual fee, but responsible use can lead to upgrading to an unsecured card.
Pros
- Helps build credit
- No annual fee
- Adjustable credit limit
- Reports to major credit bureaus
- Fraud protection.
Cons
- **Requires security deposit
- No rewards program
- High APR
- Limited benefits
- Minimum deposit required.
7.
Navy Federal nRewards® Secured Credit Card
The Navy Federal nRewards® Secured Credit Card is designed to help individuals build or rebuild their credit while earning rewards. It requires a refundable security deposit and offers 1 point per dollar spent on purchases, which can be redeemed for cash back, gift cards, and more. With no annual fee, it provides members access to Navy Federal’s extensive credit union benefits, including competitive rates and dedicated customer support.
Pros
-
No annual fee
-
Reports to all three credit bureaus
-
Rewards points on purchases
-
Opportunity to graduate to unsecured
-
Low variable APR.
Cons
-
Requires a security deposit
-
Limited initial credit limit
-
Restricted to Navy Federal members
-
No introductory APR offers
-
No travel benefits.
8.
Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card is designed for business owners looking to build or rebuild their business credit. It requires a security deposit, which determines the credit limit, and offers 1.5% cash back on every purchase with no annual fee. Cardholders benefit from Wells Fargo's online tools for managing expenses, free employee cards, and enhanced security features. This card is ideal for businesses seeking financial flexibility and credit-building opportunities.
Pros
- Builds business credit
- No annual fee
- Online account management
- Up to 1.5% cash back
- Customizable spending limits.
Cons
- High APR
- Requires security deposit
- Limited rewards categories
- No intro APR
- Limited travel benefits.
9.
First Progress Platinum Prestige Mastercard® Secured Credit Card
The First Progress Platinum Prestige Mastercard® Secured Credit Card is a secured credit card designed to help individuals build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. This card offers a low APR, but it does come with an annual fee. With responsible use, it reports to all three major credit bureaus, aiding in credit score improvement over time. No prior credit history or minimum score is needed for approval.
Pros
- No credit history required
-
Reports to all three credit bureaus
-
Low APR
-
No penalty APR
-
Security deposit is refundable.
Cons
- Annual fee
-
No rewards program
-
High foreign transaction fees
-
Requires a security deposit
-
Limited benefits and perks.