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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 Card
    Discover it® Secured Credit Card

    Discover it® Secured Credit Card - No annual fee, cashback, credit-building secured card.

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  • Capital One Platinum Secured Credit Card
    Capital One Platinum Secured Credit Card

    Capital One Platinum Secured Credit Card - Rebuild credit with refundable security deposit.

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  • Citi® Secured Mastercard®
    Citi® Secured Mastercard®

    Citi® Secured Mastercard® - Credit-building card with security deposit, no annual fee.

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  • OpenSky® Secured Visa® Credit Card
    OpenSky® Secured Visa® Credit Card

    OpenSky® Secured Visa® Credit Card - No credit check required, refundable deposit, builds credit history.

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  • Bank of America® Customized Cash Rewards Secured Credit Card
    Bank of America® Customized Cash Rewards Secured Credit Card

    Bank of America® Customized Cash Rewards Secured Credit Card - Secured card with customizable cash back rewards options.

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  • U.S. Bank Secured Visa® Card
    U.S. Bank Secured Visa® Card

    U.S. Bank Secured Visa® Card - Rebuilds credit with a refundable security deposit.

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  • Navy Federal Credit Union nRewards® Secured Credit Card
    Navy Federal Credit Union nRewards® Secured Credit Card

    Navy Federal Credit Union nRewards® Secured Credit Card - Build credit with deposit-backed card, earning rewards.

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  • First Progress Platinum Prestige Mastercard® Secured Credit Card
    First Progress Platinum Prestige Mastercard® Secured Credit Card

    First Progress Platinum Prestige Mastercard® Secured Credit Card - Secured card, builds credit, no credit history required.

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  • Green Dot Primor® Visa® Gold Secured Credit Card
    Green Dot Primor® Visa® Gold Secured Credit Card

    Green Dot Primor® Visa® Gold Secured Credit Card - Secured card, no credit check, reports to major bureaus.

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Top 10 Secured Credit Cards for Bad Credit

1.

Discover it® Secured Credit Card

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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

  • pros Builds credit
  • pros No annual fee
  • pros Cashback rewards
  • pros Free FICO score
  • pros 2x Cashback match first year.

Cons

  • cons Requires security deposit
  • cons High APR
  • cons Limited credit limit
  • cons No travel rewards
  • cons Limited international acceptance.
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2.

Capital One Platinum Secured Credit Card

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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

  • pros Helps build credit
  • pros refundable deposit
  • pros no annual fee
  • pros reports to major bureaus
  • pros flexible deposit amounts

Cons

  • cons High APR
  • cons no rewards
  • cons minimum $49 deposit
  • cons limited benefits
  • cons foreign transaction fees
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3.

Citi® Secured Mastercard®

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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

  • pros Builds credit history
  • pros Low annual fee
  • pros Reports to all three credit bureaus
  • pros No penalty APR
  • pros Can graduate to unsecured card.

Cons

  • cons Requires security deposit
  • cons Limited rewards
  • cons High APR
  • cons No signup bonus
  • cons Limited additional benefits.
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4.

OpenSky® Secured Visa® Credit Card

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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

  • pros No credit check required
  • pros Reports to all three major bureaus
  • pros Low annual fee
  • pros Flexible credit limits
  • pros Easy application process.

Cons

  • cons** No rewards program
  • cons High APR
  • cons No upgrade path
  • cons Requires a security deposit
  • cons Limited additional benefits.
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5.

Bank of America® Customized Cash Rewards Secured Credit Card

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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

  • pros Build or rebuild credit
  • pros Customizable 3% cash back category
  • pros No annual fee
  • pros Reports to credit bureaus
  • pros Potential for upgrade to unsecured.

Cons

  • consRequires a security deposit
  • cons High APR
  • cons Limited rewards categories
  • cons Foreign transaction fees
  • cons Minimum deposit $300.
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6.

U.S. Bank Secured Visa® Card

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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

  • pros Helps build credit
  • pros No annual fee
  • pros Adjustable credit limit
  • pros Reports to major credit bureaus
  • pros Fraud protection.

Cons

  • cons**Requires security deposit
  • cons No rewards program
  • cons High APR
  • cons Limited benefits
  • cons Minimum deposit required.
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8.

First Progress Platinum Prestige Mastercard® Secured Credit Card

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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

  • pros No credit history required
  • pros Reports to all three credit bureaus
  • pros Low APR
  • pros No penalty APR
  • pros Security deposit is refundable.

Cons

  • consAnnual fee
  • cons No rewards program
  • cons High foreign transaction fees
  • cons Requires a security deposit
  • cons Limited benefits and perks.
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9.

Green Dot Primor® Visa® Gold Secured Credit Card

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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

  • pros No minimum credit score requirement
  • pros Reports to all three credit bureaus
  • pros Low fixed interest rate
  • pros Helps build/rebuild credit
  • pros Easy online application.

Cons

  • consRequires a security deposit
  • cons High annual fee
  • cons No rewards program
  • cons Limited benefits
  • cons High foreign transaction fees.
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