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Are secured cards worth it?
Make a secured deposit to your card account and start building credit.
Secured cards may not always be a first choice credit card, but they are great for one thing — building credit. Of course, all cards, if used responsibly, can help you build your credit, but secured cards are designed for individuals who likely can’t get approved for an unsecured card.
How do I know if it’s worth getting a secured credit card?
Ask yourself the following questions to decide if a secured credit card would be worth it for you:
- Do you need to build credit?
If you have a poor credit score or no credit history at all, a secured card can certainly be worth having, and it might even be your first option to consider. Using this type of card, you can build credit over time with responsible use.
- Do you want a card with low fees?
In general, secured credit cards come with lower fees compared to unsecured cards for building credit. Also, most secured cards have either a low annual fee of up to $49 or have no annual fee. On the other hand, unsecured cards for building credit can cost you up to $300 per year with a variety of fees.
- Would you benefit from having a flexible credit line?
Secured credit cards require that you make a deposit which will act as your credit line. Typically, your secured deposit can range from $200 to $10,000. This gives you flexibility to deposit the amount you feel comfortable with. Once you decide to close your secured credit card account, the card issuer will return your deposit if you don’t have an outstanding balance.
Who are secured credit cards best for?
If you have poor credit score and you’re struggling to build your credit, getting a secured credit card is one of the first options you should consider.
Our pick for a secured credit card
OpenSky® Secured Visa® Credit CardRead more
Compare secured credit cards
When shouldn’t you get card a secured credit card
If you have fair credit score or higher, you can apply for an unsecured credit card and use better credit card perks than you would get with a secured credit card.
Secured credit cards are designed for individuals with a poor credit score who have difficulty qualifying for an unsecured credit card. Depending on the card, you may get a signup bonus or an intro APR period, but often you’ll have to skip these kinds of perks.
If you’re not sure whether a secured card is worth applying for, compare all your credit card options until you find what suits you best.
Frequently asked questions
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