
Intro offer
Annual fee
Regular APR
Recommended credit
Even if you have no credit history or a low credit score, a credit card might be more attainable than you think. Secured credit cards are an accessible way to build or repair your credit, and some even provide solid rewards without an annual fee. However, you’ll need to offer up a refundable security deposit to establish your credit limit. Check out our recommendations for the best secured credit cards from our partners and start building credit today.
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Intro offer
Annual fee
Regular APR
Recommended credit
Card Name | Best For | Annual fee | Bankrate Review Score |
---|---|---|---|
Capital One Platinum Secured Credit Card | Building credit | $0 | 4.2 / 5 (Read full card review) |
Capital One Quicksilver Secured Cash Rewards Credit Card | Flat-rate rewards | $0 | 3.8 / 5 (Read full card review) |
Discover it Secured Credit Card | Rewards | $0 | 5 / 5 (Read full card review) |
Self – Credit Builder Account with Secured Visa Credit Card | Building a credit mix | $25 | 3.1 / 5 (Read full card review) |
OpenSky Secured Visa Credit Card | A high credit limit | $35 | 3.0 / 5 (Read full card review) |
First Progress Platinum Elite Mastercard Secured Credit Card | Easy application and processing | $29 | 3.3 / 5 (Read full card review) |
First Progress Platinum Prestige Mastercard Secured Credit Card | Low interest | $49 | 2.7 / 5 (Read full card review) |
Read our full Capital One Platinum Secured Credit Card review or jump back to offer details.
Read our full Capital One Quicksilver Secured Cash Rewards Credit Card review or jump back to offer details.
Read our full Discover it Secured Credit Card review or jump back to offer details.
Read our Self – Credit Builder Account with Secured Visa Credit Card review or jump back to offer details.
Read our full OpenSky Secured Visa Credit Card review or jump back to offer details.
Read our full First Progress Platinum Elite Mastercard Secured Credit Card review or jump back to offer details.
Read our full First Progress Platinum Prestige Mastercard Secured Credit Card review or jump back to offer details.
A secured credit card is a type of card backed by collateral, usually in the form of a deposit from the cardholder. This deposit often serves as your credit limit. The typical consumer who gets a secured card has no credit history or a low credit score, but the deposit makes a secured card easier to qualify for. You might have an opportunity to upgrade to an unsecured card with no deposit if you use the secured card responsibly.
Access to credit. A secured card is handy for times when a merchant doesn’t accept cash, like for a hotel reservation or a rental car.
Chance to improve your credit score. With regular on-time payments, you may improve your credit score with a secured credit card.
Accountability. Because you can typically spend only up to the amount of your security deposit, a secured card can help keep your spending in check.
Extra fees. Some secured cards may charge fees for opening the account, which can reduce the amount of available credit you have left to use.
High regular APRs. Many secured cards charge higher than average APR, which can be expensive if you don’t pay your credit card bill on time and in full.
Limited features. Secured cards tend to focus on credit-building and typically lack features like a sign-up bonus, intro APR offers or other perks that add value to the card.
Getting a secured card can be an excellent path to take on the journey to a good credit score. Their relaxed application requirements make them a great fit for many types of people looking to build or repair their credit:
Still unsure if a secured credit card is right for you? Check out our Credit Card Spender Type Tool where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.
Thanks to lenient approval requirements, secured credit cards are far more accessible than traditional credit cards. But you can still get denied if you look like too much of a risk or apply for the wrong card. So, follow these tips to make sure you’re ready to get a secured card.
Inaccurate information in your credit history could cause your loan applications to be denied. Be mindful of any recent name or address changes as this can affect your credit. You can get a free weekly copy of your online credit report from the three major credit bureaus at AnnualCreditReport.com. If you find any errors, contact the bureau immediately.
If you have a limited credit history, a traditional credit score might not tell the whole story. Newer credit score products put added emphasis on good credit habits such as timely payments on utility bills, rent payments and positive bank account balances. UltraFICO, Experian Boost or similar options benefit people who handle their finances responsibly but don’t have experience with credit cards or loans.
Reports of good payment behavior to Equifax, Experian or TransUnion are essential for building or repairing credit. Make sure that your card reports to at least one of the bureaus so that your good habits — on-time payments, low utilization, paying utilities — don’t go unnoticed.
Many issuers will let you know ahead of time whether you’ll be approved, so you don’t have to go through the full process or take a hit to your credit. Bankrate’s CardMatch feature is an easy way to find a selection of cards you may be prequalified for.
It could be as low as $49 or as high as a few thousand dollars, depending on the card and the issuer. Some cards require a bank account to pay for the deposit, while others allow payment by check or money order.
After using your secured card responsibly for a while, your credit score should start to rise. Depending on your personal financial situation, progress may happen quickly if you keep your balances low and make your payments on time. Once you’ve achieved a good credit score (FICO or VantageScore of 670 or greater), you can think about shopping around for an unsecured card that might offer better rewards programs and lower fees. Here are some steps on how to upgrade to an unsecured card.
Some credit cards have both a secured and unsecured version. If that’s the case with your secured card, you may be able to simply call the customer service line and ask to upgrade for free. Some issuers may even allow you to upgrade to a variety of unsecured cards while keeping the same account. Keep in mind that you may not be eligible for the new card’s sign-up bonus if you’re upgrading from a secured card.
With cards for fair credit and beyond, you have more options to explore credit cards from other issuers. Applying for a new card may temporarily chip your credit score since you’re asking for new credit. The new account will decrease your average account age as well, but your deeper pool of available credit will more than level out these drawbacks in the long run.
If your secured card comes with fees, such as a maintenance or inactivity fee, it may be a good idea to cancel it. Otherwise, there’s no harm in keeping it open for the occasional small purchase to add to the length of your credit history which accounts for 15 percent of your credit score.
If you cancel your secured card, you should make sure to get your initial security deposit back. Once the account is closed, it’ll take 30 to 90 days to process, and you will receive it in the form of either a check or statement credit on your unsecured card. If you have not received it in this time frame, contact your issuer.
Applying for a secured card is a simple and effective way to build up less-than-ideal credit, but they may not be your only option. If you struggle to qualify for a secured credit card, here are two alternative options:
One way to dip a toe into credit building is to become an authorized user on a family member or trusted friend’s account. For parents, this is great for monitoring your child’s purchases. For young adults, this can be an effective way to establish credit without the pressure of choosing a credit card. Once you’ve built up your credit, you’ll be more likely to be approved for the best credit cards.
Another option is to apply with a cosigner — ideally someone who has good credit and trusts you to use your card responsibly. Though you are the primary cardholder in this situation, the cosigner is also liable for your debts. Like being an authorized user, having a cosigner could give you access to unsecured credit cards that you wouldn’t qualify for with your credit alone.
Whether you decide to become an authorized user or use a cosigner, it’s important to understand that it is a chance to build your own patterns when using credit so make sure to establish good habits early on. Like a secured card, you should be able to move to an unsecured card once you built your credit over a period of six or more months.
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