Top 10 Secured Credit Cards for Bad Credit
Secured credit cards for bad credit are financial tools designed specifically for individuals with poor or no credit history. These cards require a cash deposit as collateral, which typically equals the card’s credit limit, thereby reducing the risk for the issuer.
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In more detail, secured credit cards function similarly to traditional credit cards but come with the added security of a deposit. This deposit not only serves as collateral but also determines the credit limit available to the cardholder. For example, a $300 deposit would generally secure a $300 credit limit. These cards are an excellent way for individuals to build or rebuild their credit because the card issuer often reports payment activity to major credit bureaus. Responsible use, such as making on-time payments and keeping the balance low, can positively impact one’s credit score over time. While secured credit cards may come with higher interest rates and fees than unsecured cards, they offer a crucial stepping stone for those looking to improve their creditworthiness.
Discover it® Secured Credit CardView AllDiscover it® Secured Credit Card - No annual fee, cashback, credit-building secured card.
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.
Bank of America® Customized Cash Rewards Secured Credit CardView AllBank of America® Customized Cash Rewards Secured Credit Card - Secured card with customizable cash back rewards options.
U.S. Bank Secured Visa® CardView AllU.S. Bank Secured Visa® Card - Rebuilds credit with a refundable security deposit.
Navy Federal Credit Union nRewards® Secured Credit CardView AllNavy Federal Credit Union nRewards® Secured Credit Card - Build credit with deposit-backed card, earning rewards.
First Progress Platinum Prestige Mastercard® Secured Credit CardView AllFirst Progress Platinum Prestige Mastercard® Secured Credit Card - Secured card, builds credit, no credit history required.
Green Dot Primor® Visa® Gold Secured Credit CardView AllGreen Dot Primor® Visa® Gold Secured Credit Card - Secured card, no credit check, reports to major bureaus.
Top 10 Secured Credit Cards for Bad Credit
1.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card is a credit-building tool that requires a refundable security deposit, with deposits starting at $200. It offers 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, and 1% on all other purchases. Cardholders can benefit from no annual fee, free access to their FICO® Credit Score, and Discover's Cashback Match®, which matches all cash back earned in the first year.
Pros
Builds credit- No annual fee
- Cashback rewards
- Free FICO score
- 2x Cashback match first year.
Cons
Requires security deposit- High APR
- Limited credit limit
- No travel rewards
- Limited international acceptance.
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
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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
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Builds credit history
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Low annual fee
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Reports to all three credit bureaus
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No penalty APR
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Can graduate to unsecured card.
Cons
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Requires security deposit
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Limited rewards
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High APR
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No signup bonus
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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
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No credit check required
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Reports to all three major bureaus
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Low annual fee
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Flexible credit limits
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Easy application process.
Cons
- **
No rewards program
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High APR
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No upgrade path
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Requires a security deposit
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Limited additional benefits.
5.
Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America® Customized Cash Rewards Secured Credit Card is designed for individuals looking to build or rebuild their credit. It offers the opportunity to earn 3% cash back in a category of your choice, 2% at grocery stores and wholesale clubs (up to $2,500 in combined quarterly purchases), and 1% on all other purchases. A refundable security deposit of $200 or more is required, which determines your credit limit. This card also provides access to your FICO® Score for free.
Pros
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Build or rebuild credit
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Customizable 3% cash back category
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No annual fee
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Reports to credit bureaus
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Potential for upgrade to unsecured.
Cons
- Requires a security deposit
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High APR
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Limited rewards categories
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Foreign transaction fees
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Minimum deposit $300.
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 Credit Union nRewards® Secured Credit Card
The Navy Federal Credit Union nRewards® Secured Credit Card is designed to help individuals build or rebuild their credit. It requires a refundable security deposit and offers a straightforward rewards program, earning points on everyday purchases. Cardholders benefit from no annual fees, competitive interest rates, and access to Navy Federal's extensive financial resources and exceptional customer service. Additionally, responsible use can lead to an upgrade to an unsecured card, offering more financial flexibility and opportunities.
Pros
- No annual fee
- Earns rewards points
- Reports to all three credit bureaus
- Low APR
- Easy qualification.
Cons
- Requires security deposit
- Rewards redemption options limited
- High penalty APR
- Limited initial credit limit
- No introductory APR.
8.
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
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Reports to all three credit bureaus
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Low APR
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No penalty APR
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Security deposit is refundable.
Cons
- Annual fee
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No rewards program
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High foreign transaction fees
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Requires a security deposit
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Limited benefits and perks.
9.
Green Dot Primor® Visa® Gold Secured Credit Card
The Green Dot Primor® Visa® Gold Secured Credit Card is designed to help individuals build or rebuild their credit history. With a low fixed APR, it requires a refundable security deposit ranging from $200 to $5,000, which determines the credit limit. The card reports to all three major credit bureaus, making it a solid option for those looking to improve their credit score. It does not require a minimum credit score for approval, but it does have an annual fee.
Pros
- No minimum credit score requirement
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Reports to all three credit bureaus
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Low fixed interest rate
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Helps build/rebuild credit
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Easy online application.
Cons
- Requires a security deposit
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High annual fee
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No rewards program
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Limited benefits
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High foreign transaction fees.