Top 10 Secured Credit Cards with Rewards
Secured credit cards with rewards are financial products designed for individuals looking to build or rebuild their credit while enjoying the benefits of rewards programs. These cards require a refundable security deposit, which typically serves as the card's credit limit, reducing the risk for the issuer and making it easier for people with less-than-perfect credit to qualify.
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In addition to the primary benefit of credit building, secured credit cards with rewards offer incentives such as cashback, points, or travel miles, similar to traditional unsecured rewards credit cards. Cardholders can earn rewards on everyday purchases like groceries, gas, and dining, which can then be redeemed for various benefits, depending on the card issuer's rewards program. This dual feature provides the opportunity to build credit responsibly while also gaining value from regular spending. However, it's important to manage the card wisely by making timely payments and keeping the balance low to avoid interest charges and maximize the credit-building benefits. Over time, responsible use of a secured credit card can lead to an improved credit score, potentially qualifying the cardholder for an unsecured credit card with even better rewards and terms.
../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.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_3.webpCiti® Secured Mastercard®View AllCiti® Secured Mastercard® - Credit-building card with security deposit, no annual fee.
../assets/images/NO_4.webpCapital One Platinum Secured Credit CardView AllCapital One Platinum Secured Credit Card - Rebuild credit with refundable security deposit.
../assets/images/NO_5.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_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 Business Secured Credit CardView AllWells Fargo Business Secured Credit Card - Credit card for businesses, requires collateral, builds credit.
../assets/images/NO_8.webpOpenSky® Secured Visa® Credit CardView AllOpenSky® Secured Visa® Credit Card - No credit check required, refundable deposit, builds credit history.
../assets/images/NO_9.webpFirst Tech Federal Credit Union Platinum Secured Mastercard®View AllFirst Tech Federal Credit Union Platinum Secured Mastercard® - Secured card with rewards, builds credit, no annual fee.
Top 10 Secured Credit Cards with Rewards
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.
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.
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.
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
5.
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.
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 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.
8.
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.
9.
First Tech Federal Credit Union Platinum Secured Mastercard®
The First Tech Federal Credit Union Platinum Secured Mastercard® is designed to help individuals build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. This card offers competitive interest rates, no annual fees, and benefits such as fraud protection and online account management. Ideal for those with limited or damaged credit histories, it provides a pathway to establish a positive credit record while enjoying the convenience and security of a Mastercard.
Pros
- Low APR
- no annual fee
- credit-building tool
- fraud protection
- worldwide acceptance.
Cons
- No rewards program
- requires a security deposit
- high penalty fees
- limited customer service hours
- membership eligibility restrictions.