Top 10 Secured Credit Cards for Building Credit
Secured credit cards are a type of credit card designed to help individuals build or rebuild their credit history. They require a cash deposit as collateral, which typically acts as the credit limit. This makes them less risky for lenders and accessible to those with poor or no credit history.
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Using a secured credit card responsibly can significantly improve one's credit score over time. The key is to make regular, on-time payments and keep credit utilization low. Most secured credit cards report to the major credit bureaus, ensuring that your good behavior is noted. It's also crucial to review the card's terms and fees before applying, as they can vary widely. Some secured cards may offer the opportunity to upgrade to an unsecured card after demonstrating responsible usage over a certain period. By maintaining good habits, individuals can gradually build a positive credit profile, making it easier to qualify for better financial products in the future.
../assets/images/NO_1.webpDiscover it® Secured Credit CardView AllDiscover it® Secured Credit Card - No annual fee, cashback, credit-building secured card.
../assets/images/NO_2.webpCapital One Platinum Secured Credit CardView AllCapital One Platinum Secured Credit Card - Rebuild credit with refundable security deposit.
../assets/images/NO_3.webpCiti® Secured Mastercard®View AllCiti® Secured Mastercard® - Credit-building card with security deposit, no annual fee.
../assets/images/NO_4.webpOpenSky® Secured Visa® Credit CardView AllOpenSky® Secured Visa® Credit Card - No credit check required, refundable deposit, builds credit history.
../assets/images/NO_5.webpBank 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.
../assets/images/NO_6.webpU.S. Bank Secured Visa® CardView AllU.S. Bank Secured Visa® Card - Rebuilds credit with a refundable security deposit.
../assets/images/NO_7.webpWells Fargo Secured Credit CardView AllWells Fargo Secured Credit Card - Wells Fargo Secured Credit Card: credit-building with refundable deposit.
../assets/images/NO_8.webpNavy Federal Credit Union nRewards® Secured Credit CardView AllNavy Federal Credit Union nRewards® Secured Credit Card - Build credit with deposit-backed card, earning rewards.
../assets/images/NO_9.webpHarley-Davidson® Secured Credit CardView AllHarley-Davidson® Secured Credit Card - Credit card for Harley-Davidson enthusiasts with rewards.
Top 10 Secured Credit Cards for Building 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.
Wells Fargo Secured Credit Card
The Wells Fargo Secured Credit Card is designed to help individuals build or rebuild their credit. It requires a refundable security deposit, which typically sets the credit limit. Cardholders can enjoy features like zero liability protection, free access to their FICO credit score, and the ability to upgrade to an unsecured card with responsible use over time. It's an effective tool for establishing a positive credit history and managing finances responsibly.
Pros
- Helps build credit
- No annual fee
- Reports to all major bureaus
- Fraud protection
- Access to online banking.
Cons
- High APR
- Requires security deposit
- Limited rewards
- No upgrade path
- Foreign transaction fees.
8.
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.
9.
Harley-Davidson® Secured Credit Card
The Harley-Davidson® Secured Credit Card is a secured credit card designed for individuals looking to build or rebuild their credit. It requires a security deposit, serving as collateral, and offers the opportunity to earn Harley-Davidson Genuine Rewards points on purchases. Cardholders can enjoy perks such as no annual fee, fraud protection, and access to the H-D™ Museum. It combines financial flexibility with the iconic Harley-Davidson brand experience.
Pros
- Rewards on Harley-Davidson purchases
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No annual fee
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Roadside assistance
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Harley-Davidson museum access
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Flexible redemption options.
Cons
- High APR
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Limited rewards categories
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Requires good credit
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Foreign transaction fees
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Harley-Davidson exclusive benefits.