10 Best Secured Credit Cards for Building Credit
10 Best Secured Credit Cards for Building Credit
Secured credit cards are a valuable financial tool for individuals looking to build or rebuild their credit scores. Unlike traditional credit cards, secured cards require a deposit upfront, which serves as a credit limit and collateral. This deposit minimizes the lender's risk, making it easier for those with little or poor credit history to get approved. Using a secured credit card responsibly—by making timely payments and keeping utilization low—can help improve your credit score over time.
The benefits of using a secured credit card are numerous. Not only can they help you establish or rebuild credit, but they also provide a safe way to manage finances without the risk of overspending. As long as you make your payments on time and maintain a good credit utilization ratio, secured credit cards can pave the way to better financial opportunities. Furthermore, many secured credit cards report to all three major credit bureaus, ensuring that your efforts to build credit are recognized. Now, let's dive into the 10 best secured credit cards for building credit.
1.
Discover it® Secured Credit Card
The Discover it® Secured Credit Card is designed to help individuals build or rebuild their credit by using a secured deposit as collateral. It functions like a traditional credit card, offering rewards and credit-building opportunities, with the added security of a refundable deposit.
Earn Cash Back: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter (1% on all other purchases).
Cash Back Match: At the end of your first year, Discover will match all the cash back you’ve earned. This effectively doubles your rewards in the first year.
No Annual Fee: There’s no annual fee for this secured card, making it affordable for individuals with limited credit histories.
Building Credit: Your account activity is reported to the three major credit bureaus, helping you establish or improve your credit score.
No Foreign Transaction Fees: Ideal for international purchases or travel.
Refundable Deposit: Your security deposit is refundable if you close your account in good standing.
Cash Back Match: At the end of your first year, Discover will match all the cash back you’ve earned. This effectively doubles your rewards in the first year.
No Annual Fee: There’s no annual fee for this secured card, making it affordable for individuals with limited credit histories.
Building Credit: Your account activity is reported to the three major credit bureaus, helping you establish or improve your credit score.
No Foreign Transaction Fees: Ideal for international purchases or travel.
Refundable Deposit: Your security deposit is refundable if you close your account in good standing.
Discover it® Secured Credit CardCheck HereDiscover it® Secured Credit Card - - A secured credit card that offers 2% cashback at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases. The cashback is matched at the end of your first year, and there's no annual fee.
Pros
Cash Back Rewards: Earn 2% cash back on gas and restaurant purchases, which is a significant benefit for a secured card.- Cash Back Match: The first-year cash back match can be a huge bonus for cardholders, potentially doubling the value of your rewards.
- No Annual Fee: There is no annual fee, which is uncommon for secured credit cards and makes this card very affordable.
- Credit Building: It’s a great option for individuals who are looking to improve their credit score over time.
- No Foreign Transaction Fees: This is a major advantage for individuals who travel internationally.
- Refundable Deposit: Your security deposit is refundable, and can be used to help increase your credit limit after several months of good behavior.
Cons
Requires a Deposit: A minimum deposit of $200 is required to open the card, which may not be ideal for everyone.- Limited Rewards on Other Purchases: Outside of gas and restaurant spending, you only earn 1% cash back, which is standard for most credit cards but less rewarding than some non-secured options.
- Low Credit Limit: Your credit limit is determined by your deposit, and may not be sufficient for larger purchases.
Key Features
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases per quarter (1% on all other purchases)
Cash Back Match at the end of your first year
No annual fee
No foreign transaction fees
Refundable deposit (starting at $200)
Reports to all 3 major credit bureaus
Cash Back Match at the end of your first year
No annual fee
No foreign transaction fees
Refundable deposit (starting at $200)
Reports to all 3 major credit bureaus
Why Is Recommended
The Discover it® Secured Credit Card is ideal for individuals looking to rebuild or establish their credit while earning rewards. The card offers strong cash-back incentives, including the 2% on gas and restaurant purchases, which is uncommon for secured cards. The first-year cash-back match further boosts the card's value. Plus, the lack of an annual fee and foreign transaction fees makes it an affordable and practical option for building credit. It’s an excellent choice for those who want to improve their credit score without sacrificing rewards.
2.
Citi® Secured Mastercard®
The Citi® Secured Mastercard® is a secured credit card designed to help individuals build or rebuild their credit. It requires a refundable security deposit that acts as your credit limit. The card reports to the three major credit bureaus—Experian, Equifax, and TransUnion—allowing you to establish or improve your credit score over time with responsible use.
Credit Reporting to All Major Bureaus: The card reports to Experian, Equifax, and TransUnion, helping you build or rebuild your credit history.
Low Security Deposit Requirement: You can open an account with a minimum deposit of just $200, making it accessible to individuals with limited funds.
Refundable Deposit: Your security deposit is refundable if you close the account in good standing or upgrade to an unsecured card.
No Annual Fee: There is no annual fee, which makes this a cost-effective option for credit-building.
Access to Citi® Identity Theft Solutions: Enjoy peace of mind with access to Citi’s identity theft protection services.
Online Account Management: Easily manage your account online or via the Citi mobile app for added convenience.
Low Security Deposit Requirement: You can open an account with a minimum deposit of just $200, making it accessible to individuals with limited funds.
Refundable Deposit: Your security deposit is refundable if you close the account in good standing or upgrade to an unsecured card.
No Annual Fee: There is no annual fee, which makes this a cost-effective option for credit-building.
Access to Citi® Identity Theft Solutions: Enjoy peace of mind with access to Citi’s identity theft protection services.
Online Account Management: Easily manage your account online or via the Citi mobile app for added convenience.
- Citi® Secured Mastercard®Check Here
Citi® Secured Mastercard® - - With no annual fee and a simple process, this card is great for individuals who want a straightforward way to improve their credit score.
Pros
- Low Minimum Deposit: The $200 minimum deposit requirement makes it an accessible option for individuals with limited funds.
- No Annual Fee: Unlike many other secured cards, there is no annual fee, reducing the overall cost of using the card.
- Reports to Major Credit Bureaus: This card helps build credit by reporting to all three major credit bureaus, making it an excellent choice for credit rebuilding.
- Refundable Security Deposit: You can get your deposit back if you close the account in good standing or transition to an unsecured card.
- Identity Theft Protection: Access to Citi® Identity Theft Solutions is a valuable benefit for added security.
Cons
- Requires a Deposit: Like all secured cards, you need to provide a security deposit, which may be a barrier for some users.
- No Rewards Program: The Citi® Secured Mastercard® does not offer rewards, cashback, or any other incentives on purchases.
- Relatively High APR: The card has a high APR (around 24.74% variable), which could be costly if you carry a balance.
Key Features
No annual fee
Low minimum deposit of $200
Reports to all three major credit bureaus
Refundable security deposit
Access to Citi® Identity Theft Solutions
Online account management and mobile app access
High APR (around 24.74% variable)
Low minimum deposit of $200
Reports to all three major credit bureaus
Refundable security deposit
Access to Citi® Identity Theft Solutions
Online account management and mobile app access
High APR (around 24.74% variable)
Why Is Recommended
The Citi® Secured Mastercard® is recommended for individuals looking to rebuild or establish their credit without paying an annual fee. The low minimum deposit, no annual fee, and access to identity theft protection make it a solid choice for those new to credit or working to improve their score. The refundable deposit offers flexibility, and the card's ability to report to all three major credit bureaus ensures your responsible use can positively impact your credit score.
3.
OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is a secured credit card designed to help individuals build or rebuild their credit. It requires a refundable security deposit that determines your credit limit. The card functions like a standard credit card and reports to all three major credit bureaus, helping users improve their credit scores with responsible usage.
No Credit Check: The card doesn’t require a credit check for approval, making it accessible for those with no credit or poor credit history.
Reports to All 3 Major Credit Bureaus: It helps you build or rebuild your credit by reporting your payment history to Experian, Equifax, and TransUnion.
Flexible Deposit Amount: You can choose your security deposit, with a minimum of $200, up to $3,000, allowing you to control your credit limit.
Builds Credit: Helps establish or improve your credit score with responsible card use.
Worldwide Acceptance: As a Visa card, it is accepted at millions of locations worldwide, both online and in-store.
No Annual Fee for the First Year: The card offers a $0 annual fee for the first year, which is a great benefit when compared to other secured cards with annual fees.
Reports to All 3 Major Credit Bureaus: It helps you build or rebuild your credit by reporting your payment history to Experian, Equifax, and TransUnion.
Flexible Deposit Amount: You can choose your security deposit, with a minimum of $200, up to $3,000, allowing you to control your credit limit.
Builds Credit: Helps establish or improve your credit score with responsible card use.
Worldwide Acceptance: As a Visa card, it is accepted at millions of locations worldwide, both online and in-store.
No Annual Fee for the First Year: The card offers a $0 annual fee for the first year, which is a great benefit when compared to other secured cards with annual fees.
- OpenSky® Secured Visa® Credit CardCheck Here
OpenSky® Secured Visa® Credit Card - - A secured card that doesn't require a credit check to apply. While it does have an annual fee, it is a great option for individuals with poor or no credit history looking to rebuild.
Pros
- No Credit Check for Approval: This makes the card accessible to those who may not qualify for other cards due to poor credit.
- Reports to All Major Bureaus: This is a key advantage for individuals who want to improve their credit score.
- Flexible Deposit: You can choose the amount of your security deposit, which can be a helpful way to manage your credit limit.
- No Annual Fee for the First Year: The first-year fee waiver makes the card more affordable, especially when compared to other secured cards.
- Widely Accepted: As a Visa card, it is accepted by a large network of merchants globally.
Cons
- Requires a Deposit: The card requires an upfront deposit, which may not be ideal for everyone, especially those with limited funds.
- Annual Fee After First Year: After the first year, the card charges a $35 annual fee, which is a downside compared to some no-fee secured cards.
- No Rewards Program: Unlike some secured cards, the OpenSky® Secured Visa® Credit Card does not offer a rewards program, limiting its long-term value for some users.
Key Features
No Credit Check for Approval
Reports to all 3 major credit bureaus
$0 annual fee for the first year
Flexible security deposit (minimum $200, up to $3,000)
No rewards program
$35 annual fee after the first year
Visa global acceptance
Reports to all 3 major credit bureaus
$0 annual fee for the first year
Flexible security deposit (minimum $200, up to $3,000)
No rewards program
$35 annual fee after the first year
Visa global acceptance
Why Is Recommended
The OpenSky® Secured Visa® Credit Card is recommended for individuals looking to build or rebuild their credit, especially those who may have difficulty qualifying for other cards due to poor or limited credit history. Its lack of a credit check makes it a good option for those with no credit or low scores. The flexibility in deposit amount and the first-year annual fee waiver adds extra value, making it an affordable way to improve your credit over time.
4.
Wells Fargo Secured Credit Card
The Wells Fargo Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a security deposit, and your credit limit is typically equal to the amount of the deposit. It functions like a regular credit card but with the added benefit of helping to establish or improve your credit score.
Reports to All 3 Major Credit Bureaus: Helps you build or rebuild your credit by reporting to Experian, Equifax, and TransUnion.
Access to Your Credit Line: Your security deposit determines your credit limit, which you can access as long as you manage payments responsibly.
No Annual Fee: Enjoy the benefits of a secured credit card without an annual fee.
Online and Mobile Banking: Manage your card and track your spending easily with Wells Fargo's online banking tools.
Access to Your Credit Line: Your security deposit determines your credit limit, which you can access as long as you manage payments responsibly.
No Annual Fee: Enjoy the benefits of a secured credit card without an annual fee.
Online and Mobile Banking: Manage your card and track your spending easily with Wells Fargo's online banking tools.
- Wells Fargo Secured Credit CardCheck Here
Wells Fargo Secured Credit Card - - This card offers a low APR and a flexible credit limit, which can help you manage your finances while building your credit score.
Pros
- Helps establish or rebuild credit
- No annual fee
- No minimum income requirement
- Security deposit is refundable
Cons
- Requires a security deposit (usually at least $300)
- Lower credit limit than unsecured cards
- High APR (variable)
Key Features
Reports to major credit bureaus
No annual fee
Refundable security deposit
Accessible via Wells Fargo online banking
No annual fee
Refundable security deposit
Accessible via Wells Fargo online banking
Why Is Recommended
Ideal for individuals looking to improve or establish their credit score. It's a good entry point for people with little or no credit history, and the absence of an annual fee is a big plus.
5.
Self Visa® Credit Card
- Self Visa® Credit CardCheck Here
Self Visa® Credit Card - - This card works in conjunction with the Self Credit Builder Account to help you save money while establishing your credit history.
6.
US Bank Secured Visa® Card
- US Bank Secured Visa® CardCheck Here
US Bank Secured Visa® Card - - A secured card offering the flexibility of choosing your own deposit amount (which becomes your credit limit). The card reports to the three major credit bureaus, making it a good option for rebuilding credit.
7.
Secured Mastercard® from Capital One
- Secured Mastercard® from Capital OneCheck Here
Secured Mastercard® from Capital One - - A no-frills secured card that allows you to start building credit with a refundable security deposit. It has a relatively low annual fee and offers access to higher credit limits with responsible use.
8.
Chase Secure Credit Card
- Chase Secure Credit CardCheck Here
Chase Secure Credit Card - - A dependable choice for those looking for a secured card with a reputable financial institution, offering great customer support and ease of use.
9.
Green Dot® Secured Credit Card
- Green Dot® Secured Credit CardCheck Here
Green Dot® Secured Credit Card - - This secured card charges no annual fee and offers a low deposit requirement to help you get started with rebuilding your credit. It's a good option for individuals with poor credit who want a straightforward, low-cost card.
Conclusion
Secured credit cards are an excellent option for anyone looking to improve or establish their credit score. They offer a low-risk way to build credit while gaining valuable financial management experience. By choosing one of the best secured credit cards, you can enjoy the benefits of low fees, improved credit scores, and increased financial freedom. Remember to choose a card that fits your needs and use it responsibly to unlock the potential benefits of a stronger credit profile.