The 3 best secured credit cards with no annual fees

If you’re using a secured credit card, you’re probably interested in building or rebuilding your credit. That’s why having to pay an annual fee for a secured card can be a bitter pill to swallow. Fortunately, there are a few secured cards with no annual fees that even come with some rewards and perks.

When choosing our secured credit card with no annual fee picks, we looked at a few features, including annual fee, security deposit and any other perks that a consumer might find appealing in a secured card. Those cards that outperformed the others in a given category were chosen for our list.

Here are our favorite picks for secured credit cards with no annual fees.

• What's changed in 2020?

  There are plenty of secured credit cards out there but relatively few great ones. Our list remains unchanged this year thanks to the continued solid performance of these cards.

Secured credit cards with no annual fees

We’ve scoured the market looking for the best secured credit cards without annual fees. Among these $0 annual fee cards, we’ve also highlighted factors that make these cards stand out.

Best secured card for lowest deposit
Capital One® Secured Mastercard®

Finder Rating: 4.4 / 5

★★★★★

Credit recommended (580-669) Read review Rates & fees

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580
Min. credit score

$0
Annual fee

26.99% variable
Purchase APR

From $49
Min. deposit

• Info
• Pros & cons
• Details

With a secured card, your credit limit will typically equal your security deposit. Not so with the Capital One® Secured Mastercard®. Depending on your credit, you may be able to deposit only $49 or $99 and still get a credit line of $200.

• Various minimum deposits. Depending on your credit, you'll make a cash deposit of $49, $99 or $200 to activate your card.
• Get an upgrade with timely payments. After you make your first five monthly payments on time, you'll get a higher credit line.
• Platinum Mastercard perks. Get purchase benefits, travel insurance, roadside assistance and more.

Annual fee	$0
Minimum deposit required	$49, $99 or $200
Purchase APR	26.99% variable
Balance transfer APR	26.99% variable
Recommended minimum credit score	580

Best secured card for no credit
Citi® Secured Mastercard®

Finder Rating: 4.3 / 5

★★★★★

Credit recommended (580-739) Read review

580
Min. credit score

$0
Annual fee

22.49% variable
Purchase APR

From $200
Min. deposit

• Info
• Pros & cons
• Details

If you're not rebuilding your credit score from past mistakes and you need to start fresh, the Citi® Secured Mastercard® is a great, straightforward secured credit card to get the ball rolling. Fees are minimal, you won't need to concern yourself with rewards and your security deposit starts as low as $200.

• Standard interest rate. You'll enjoy a fairly standard 22.49% variable APR for purchases and balance transfers.
• Mastercard perks. Get purchase benefits, travel insurance, roadside assistance and more.
• Online account features. Autopay, flexible pay dates and alerts to help you stay on track.
• Minimum deposit. Deposit of $200.

Annual fee	$0
Minimum deposit required	Starting at $200
Purchase APR	22.49% variable
Balance transfer APR	22.49% variable
Recommended minimum credit score	580

Disclaimer

The information about Citi® Secured Mastercard® has been collected independently by Finder and has not been reviewed or provided by the issuer.

Honorable mention
DCU Visa® Platinum Secured Credit Card

Credit recommended (300-579) Read review

300
Min. credit score

$0
Annual fee

11.5% variable
Purchase APR

From $500
Min. deposit

• Info
• Pros & cons
• Details

The DCU Visa® Platinum Secured Credit Card offers a relatively low 11.5% variable APR for purchases, balance transfers and cash advances.The card doesn't have rewards. But it's still a reliable no-annual-fee choice, as long as you're willing to join the Digital Federal Credit Union.

• Low interest rate. Enjoy a low 11.5% variable APR for purchases, balance transfers and cash advances.
• Light on the fees. No balance transfer, cash advance or foreign transaction fees.
• Minimum deposit. None. You borrow against your DCU savings account.

Annual fee	$0
Minimum deposit required	Starting at $500
Purchase APR	11.5% variable
Balance transfer APR	11.5% variable
Recommended minimum credit score	300

How to choose the best secured credit card

There aren’t as many secured card options to choose from as there are with other types of credit cards. But if you’re new to credit or trying to rebuild your credit — it may seem hard to make the right choice. To make it easy for you, here’s what to consider to choose the best secured card for your situation:

• Secured deposit amount. Probably the most important aspect of a secured credit card is the amount you can deposit. Most secured cards start with a $200 deposit, which acts as your credit limit, but the Capital One Secured Card may give you the $200 credit limit with a $49 deposit.
• Credit bureau reporting. To build your credit, a credit card must report your activity to the three major credit bureaus — Experian, Equifax and TransUnion. Choose a card that does.
• Interest rates. Secured credit cards often have higher interest rates than unsecured cards. However, there are some secured cards that offer some of the lowest interest rates you can find in a credit card. If you often carry your balance, this type of secured card may be your best choice.

Benefits of getting a secured card with no annual fee

A card with no annual fee offers a few advantages:

• You can use the card at your own pace. Cards with an annual fee typically require a certain amount of usage to make up for that fee. With a no-annual-fee card, you can use your card as often or little as you like without that added pressure.
• Save money. The most obvious benefit of a no-annual-fee secured card: you won’t have to factor the annual fee cost into your budgeting. When you’re trying to build credit, every penny counts.

Do I really need a secured credit card?

If you want to build credit without paying high fees and interest rates, a secured card is a solid option. You also need to be able to put down an upfront secured deposit to use the card.

There are unsecured cards for building credit where you don’t need to make a secured deposit. But they may cost you more in the long run because of the high annual fee and host of other fees that could make building credit difficult.

Compare other secured credit cards

Sort by:

Name	Product	Filter values	Minimum deposit required	Purchase APR	Annual fee	Recommended minimum credit score
OpenSky® Secured Visa® Credit Card			Starting at $200	17.39% variable	$35	300	Apply for this card with no credit check if you're new to credit or have bad credit.	Apply now View details	Compare	loading Fetching your data...
Applied Bank® Secured Visa® Gold Preferred® Credit Card			Starting at $200	9.99% fixed	$48	300	No credit check is required for this secured card. Make a deposit of at least $200 to open this card and get a low 9.99% fixed APR on purchases.	Apply now View details	Compare	loading Fetching your data...
Assent Platinum 0% Intro Rate Mastercard® Secured Credit Card			Starting at $200	0% intro for the first 6 months (then 12.99% variable)	$49	300	A rare secured card with a 0% intro APR on purchases for 6 months, followed by 12.99% variable.	Apply now View details	Compare	loading Fetching your data...
Self Visa® Credit Card			Starting at $100	21.74% variable	$25	300	Build your credit with a low minimum security deposit of $100 and no credit score required.	Apply now View details	Compare	loading Fetching your data...
First Progress Platinum Select MasterCard® Secured Credit Card			Starting at $200	13.99% variable	$39	300	No minimum credit score and no credit history required.	Apply now View details	Compare	loading Fetching your data...
First Progress Platinum Prestige Mastercard® Secured Credit Card			Starting at $200	9.99% variable	$49	300	Build or rebuild your credit with this secured card.	Apply now View details	Compare	loading Fetching your data...
First Progress Platinum Elite MasterCard® Secured Credit Card			Starting at $200	19.99% variable	$29	300	Build your credit with all three major credit bureaus.	Apply now View details	Compare	loading Fetching your data...
PCB Secured Visa®			Starting at $200	18.9% fixed	$39	300	Choose your initial deposit amount and credit limit from $200 to $1000	View details	Compare	loading Fetching your data...

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Bottom line

Picking a secured card with no annual fee is a great way to make the process of building credit as easy and pain-free as possible. Compare more secured credit cards for even more options for building your credit score.

Frequently asked questions

• When I make a security deposit, will it earn interest?

  Most of the time, your provider won’t pay interest on your security deposit.

• Is a secured credit card a 'normal' credit card?

  Yes. You can use it like any other credit card, as long as you stay within your credit limit.

• Will card providers check my credit?

  Many secured-card providers will check your credit. For that reason, you may be declined if your credit score is too low. If you’re declined for a secured card, consider applying with a provider that doesn’t check credit.