10 Best Secured Credit Cards with Rewards
Secured credit cards with rewards are a great way for individuals to build or rebuild their credit while earning valuable rewards. These cards work similarly to traditional credit cards, but they require a security deposit, which acts as collateral. The deposit typically serves as your credit limit, and it helps reduce the risk for the card issuer. By using a secured credit card responsibly, cardholders can improve their credit score and qualify for unsecured cards in the future.
One of the key benefits of secured credit cards with rewards is that they provide the opportunity to earn cashback, points, or miles for every purchase made. This makes them an attractive option for those looking to build credit while enjoying the perks of earning rewards. Additionally, these cards often report to the major credit bureaus, which can positively impact your credit history when payments are made on time.
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.
Capital One® Secured Mastercard®
The Capital One® Secured Mastercard® is a secured credit card designed to help individuals build or rebuild their credit. It requires a refundable security deposit that serves as your credit limit. The card reports your payment activity to the major credit bureaus, helping you establish or improve your credit score when used responsibly.
No Annual Fee: The card does not charge an annual fee, which is a significant advantage over many other secured cards.
Access to a Higher Credit Line: After making your first five monthly payments on time, you may be eligible for a higher credit line with no additional deposit required.
Reports to Major Credit Bureaus: It reports to all three major credit bureaus—Equifax, Experian, and TransUnion—helping you build or improve your credit score.
Refundable Security Deposit: Your deposit is refundable when you close the account in good standing, or you may receive the deposit back if you're upgraded to an unsecured card.
No Foreign Transaction Fees: You can use the card for international purchases without incurring foreign transaction fees.
Access to CreditWise® from Capital One®: This free tool helps you track your credit score and provides insights into how your credit behavior can impact your score.
Access to a Higher Credit Line: After making your first five monthly payments on time, you may be eligible for a higher credit line with no additional deposit required.
Reports to Major Credit Bureaus: It reports to all three major credit bureaus—Equifax, Experian, and TransUnion—helping you build or improve your credit score.
Refundable Security Deposit: Your deposit is refundable when you close the account in good standing, or you may receive the deposit back if you're upgraded to an unsecured card.
No Foreign Transaction Fees: You can use the card for international purchases without incurring foreign transaction fees.
Access to CreditWise® from Capital One®: This free tool helps you track your credit score and provides insights into how your credit behavior can impact your score.
- Capital One® Secured Mastercard®Check Here
Capital One® Secured Mastercard® - - A simple and effective card to help rebuild credit with a low minimum deposit and no annual fee. Offers the possibility of a higher credit limit after making your first five monthly payments on time.
Pros
- No Annual Fee: This is one of the most attractive features of the card, making it a low-cost option for building credit.
- Potential for Credit Line Increase: You may be able to increase your credit limit after making timely payments, offering flexibility as your credit improves.
- Reports to All 3 Major Credit Bureaus: This ensures that your responsible behavior will be reflected in your credit report.
- No Foreign Transaction Fees: A rare perk for secured cards, making it ideal for international travel.
- Low Minimum Deposit: The minimum security deposit requirement is as low as $49, making it accessible for many people.
Cons
- Requires a Deposit: The security deposit requirement might be a barrier for some applicants, especially those with limited funds.
- Limited Rewards: The card does not offer a rewards program, so there is no opportunity to earn points or cash back.
- Relatively Low Credit Limit: Your credit limit is initially tied to the amount of your deposit, which can be limiting for individuals with higher spending needs.
Key Features
No annual fee
Potential for a higher credit limit with no additional deposit
Refundable security deposit
Reports to all 3 major credit bureaus
No foreign transaction fees
Access to CreditWise® to track your credit score
Low minimum deposit of $49, $99, or $200, based on creditworthiness
Potential for a higher credit limit with no additional deposit
Refundable security deposit
Reports to all 3 major credit bureaus
No foreign transaction fees
Access to CreditWise® to track your credit score
Low minimum deposit of $49, $99, or $200, based on creditworthiness
Why Is Recommended
The Capital One® Secured Mastercard® is recommended for individuals looking to build or rebuild their credit while avoiding the high fees often associated with secured cards. The no annual fee, low deposit requirement, and potential for a credit limit increase make it an attractive choice for those with limited funds or poor credit histories. Additionally, the card’s ability to help improve credit by reporting to all three bureaus and offering access to free credit monitoring through CreditWise® makes it an excellent tool for credit building.
4.
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.
5.
Chase Sapphire Preferred® Card (Secured version)
- Chase Sapphire Preferred® Card (Secured version)Check Here
Chase Sapphire Preferred® Card (Secured version) - - Known for offering premium rewards, Chase may allow customers to convert to the Sapphire Preferred® card after a few months of responsible usage. This can give cardholders access to travel points and exclusive rewards.
6.
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.
7.
U.S. Bank Secured Visa® Card
A secured credit card to help establish or rebuild credit.
Reports to all three credit bureaus.
Offers access to Visa's global network.
Reports to all three credit bureaus.
Offers access to Visa's global network.
Credit Building: Ideal for those rebuilding credit.
Access to Credit: Accessible to a wide range of applicants.
Global Visa Acceptance: Accepted globally wherever Visa is used.
Access to Credit: Accessible to a wide range of applicants.
Global Visa Acceptance: Accepted globally wherever Visa is used.
- U.S. Bank Secured Visa® CardCheck Here
U.S. Bank Secured Visa® Card - - This card is designed for those who want to earn credit-building rewards without the complexity of a rewards program. It offers a straightforward path to improving your credit while keeping your fees low.
Pros
- Reports to all three credit bureaus.
- No annual fee.
- Flexible deposit amounts.
Cons
- High APR (26.99% variable).
- Requires a refundable security deposit.
Key Features
Credit Limit: $300 and up, based on deposit.
APR: 26.99% (variable).
Annual Fee: $0.
Deposit: $300 minimum.
APR: 26.99% (variable).
Annual Fee: $0.
Deposit: $300 minimum.
Why Is Recommended
US Bank Secured Visa® is a strong contender for anyone looking to improve their credit with no annual fee. It's easy to use with Visa's widespread acceptance.
8.
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.
9.
Green Dot Primor® Visa® Gold Secured Credit Card
The Green Dot Primor® Visa® Gold Secured Credit Card is a secured credit card designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit that serves as your credit limit. The card reports to all three major credit bureaus (Experian, Equifax, and TransUnion) to help establish or improve your credit score. It is widely accepted anywhere Visa is accepted, both online and in-store.
Reports to All Three Major Credit Bureaus: Your credit activity is reported to Experian, Equifax, and TransUnion, helping you build your credit score over time.
No Annual Fee: Unlike many other secured cards, this card comes with no annual fee, reducing the overall cost of using the card.
Access to the Visa Network: As a Visa card, it is accepted globally, both online and at millions of locations.
Flexible Deposit Amount: The required security deposit ranges from $200 to $5,000, which determines your credit limit. You can increase your deposit to raise your credit limit.
No Hidden Fees: The card is straightforward, with no hidden fees or complicated terms, making it an affordable option for those looking to rebuild their credit.
No Annual Fee: Unlike many other secured cards, this card comes with no annual fee, reducing the overall cost of using the card.
Access to the Visa Network: As a Visa card, it is accepted globally, both online and at millions of locations.
Flexible Deposit Amount: The required security deposit ranges from $200 to $5,000, which determines your credit limit. You can increase your deposit to raise your credit limit.
No Hidden Fees: The card is straightforward, with no hidden fees or complicated terms, making it an affordable option for those looking to rebuild their credit.
- Green Dot Primor® Visa® Gold Secured Credit CardCheck Here
Green Dot Primor® Visa® Gold Secured Credit Card - - While not offering typical rewards, this card has low APR and no hidden fees, making it ideal for credit-building purposes while saving on interest.
Pros
- No Annual Fee: The card has no annual fee, which is rare for secured cards and helps keep costs low.
- Reports to All Major Credit Bureaus: Helps build or rebuild your credit by reporting your payments to the three major bureaus.
- Visa Global Acceptance: The card is part of the Visa network, which is accepted worldwide, offering flexibility for both local and international purchases.
- Flexible Deposit: You can choose your deposit amount based on your budget, with a minimum deposit of $200 and a maximum of $5,000.
- No Hidden Fees: The card does not come with hidden fees, making it transparent and easy to manage.
Cons
- High APR: The card has a relatively high APR (around 19.99%), which can be expensive if you carry a balance.
- Requires a Deposit: The card requires a refundable security deposit, which may be a barrier for those with limited funds.
- No Rewards: Unlike some other secured cards, it does not offer cashback or rewards for purchases.
Key Features
Reports to all three major credit bureaus
No annual fee
Global acceptance via the Visa network
Flexible deposit amount (minimum $200, up to $5,000)
No hidden fees
High APR (around 19.99%)
No annual fee
Global acceptance via the Visa network
Flexible deposit amount (minimum $200, up to $5,000)
No hidden fees
High APR (around 19.99%)
Why Is Recommended
The Green Dot Primor® Visa® Gold Secured Credit Card is ideal for individuals who need to rebuild their credit but want a straightforward, affordable option. Its no annual fee and global acceptance through the Visa network make it a great choice for everyday use. The flexible deposit requirement allows users to control their credit limit, while reporting to all three credit bureaus ensures that responsible card use will improve your credit score over time. Despite the high APR and lack of rewards, it remains a solid option for those focused on building or rebuilding credit with minimal fees.
10.
Bank of America® Customized Cash Rewards Secured Credit Card
Secured credit card that offers cashback rewards on everyday purchases.
Requires a refundable security deposit.
Requires a refundable security deposit.
Cashback Rewards: Earn 3% on the category of your choice, 2% at grocery stores and wholesale clubs, and 1% on all other purchases.
No Annual Fee: A rare feature among secured cards with rewards.
Cash Rewards: Redeem cashback for statement credits, deposits, or even gift cards.
No Annual Fee: A rare feature among secured cards with rewards.
Cash Rewards: Redeem cashback for statement credits, deposits, or even gift cards.
- Bank of America® Customized Cash Rewards Secured Credit CardCheck Here
Bank of America® Customized Cash Rewards Secured Credit Card - - This card offers 3% cashback on categories of your choice, such as online shopping, gas, or dining, and 2% at grocery stores. It's an excellent choice for those looking to maximize rewards while building their credit score.
Pros
- Cashback rewards program.
- No annual fee.
- Flexible deposit amounts.
Cons
- High APR of 26.99%.
- Requires a refundable security deposit.
- Limited rewards categories.
Key Features
Cashback: 3% in a category of your choice, 2% at grocery stores/wholesale clubs.
APR: 26.99% (variable).
Annual Fee: $0.
Deposit: Minimum $300.
APR: 26.99% (variable).
Annual Fee: $0.
Deposit: Minimum $300.
Why Is Recommended
This card is a great option for those looking to earn rewards while building credit. The flexibility of cashback categories adds value for consumers who want more from their secured card.
Conclusion
Secured credit cards with rewards offer a fantastic way to build or repair your credit while enjoying the benefits of earning cashback, points, or miles. Each card provides different features, so it’s important to choose one that best fits your spending habits and financial goals. By using your secured card responsibly and making timely payments, you can not only improve your credit score but also unlock more attractive financial opportunities down the road.