Our pick for a secured card for students: Citi® Secured Mastercard®
- No annual fee: A rare feature for a secured card
- Build credit with reporting to all 3 major credit bureaus
- Deposit between $200 - $2,500
Finder is committed to editorial independence. While we receive compensation when you click links to partners, they do not influence our content.
Our pick for a secured card for students: Citi® Secured Mastercard®
College is a great opportunity to start building your credit since your financial responsibilities are typically low. However, you might not necessarily qualify for a student credit card depending on you or your parents’ past credit history.
If this is the case, consider starting out with a secured credit card. This type of card is easy to obtain for someone with no credit history and it can offer multiple benefits that are perfect for college students. Use it wisely, and you’re well on your way to long-term creditworthiness.
A solid credit history is essential to many purchases you’ll need to make in the future. Having a decent credit score right out of school will prepare you ahead of time for events that rely on your credit score.
Rather than building credit when you need it, start the process early. Pick a secured card that reports to the three major credit bureaus, then let time work its magic.
Secured cards are invaluable for new cardholders as you don’t need a credit history to apply. Because you put down a deposit to secure these cards, you’re considered less risky to a provider that can simply take your deposit if you fail to make payments. And you can apply with a good chance of getting approved.
Some of the best credit cards for college students often include secured credit cards because approval rates are high on these cards. Secured credit cards for families with no credit or poor credit are great for building up good credit with minimal risk compared to unsecured cards.
With that said, it’s important to note that standard student credit cards often allow for a parent to cosign your application. These cards generally have better terms and rewards than secured credit cards, without requiring you to personally have a credit score provided your parents have a good credit history. Make sure to compare your student credit card options first before applying for a secured credit card.
Students under the age of 18 can also apply for a secured credit card. To get a secured credit card under the minimum age of 18, you’ll need a cosigner, who puts their name behind your spending habits and promises to be responsible for you. This provides another level of protection for college students who are still learning how to properly manage their credit.
When you have a high credit limit, it’s tempting to use your card for large purchases and put repayment on the back burner. But this is an easy way to spiral into a huge debt that can take years to erase. Secured credit cards help college students learn good spending habits.
With a secured card, your credit limit is the amount of money you deposit up front. This might sound like a disadvantage, but it can benefit those who are new to credit cards. If you put down a $200 deposit, you effectively ensure that you can’t spend more than that. You’ll need to consistently pay off what you owe first before spending more with your card.
This is one of the benefits of a secured credit card over a student credit card. Student credit cards can come with much higher credit limits depending on the card and your credit history. If you’re someone inexperienced with proper credit card usage, this higher limit can prove more troublesome than helpful.
Operating within a small credit limit offers plenty of practice with handling credit. You’ll come to view your card as a tool to easily make small purchases, instead of a gold mine of untapped riches. Better yet, you can correct bad spending habits — such as spending too close to your credit limit — before you’re eligible to open new credit cards in a few years.
An attractive benefit of secured cards is that some allow you to graduate to an unsecured card. Unsecured cards are what we typically think of as “normal” credit cards and they don’t require security deposits.
If you can’t get a student credit card at first, consider starting with a secured card that gives back as you prove you have responsible borrowing habits. For example, the Capital One® Secured Mastercard® gives you a higher credit line after you pay on time for the first five months.
Secured credit cards can be helpful but an unsecured card can offer greater benefits at lower fees. All of the best cards — cash back, travel, balance transfer, 0% intro APR and more — are unsecured. And the best perks are reserved for those with good credit scores. The same goes for secured credit cards — the best secured credit cards for college students looking for perks might require a better credit score.
While your secured credit card won’t offer many perks, you can start thinking about what you value most in a card. This will inform your research when you start looking for an unsecured card down the line.
By spending responsibly and paying off your balance in full each month, you’ll soon be able to open a card that comes with travel benefits, spending bonuses and other perks to reward your spending habits. To make sure you’re getting the best card for you, compare all of your options for a secured credit card.
If you’re unable to qualify for a student credit card, but still want to start building your credit, a secured credit card can offer all of the same credit-building capabilities, albeit with fewer features. Compare student credit cards to see if there’s a card that suits your needs and then check out available secured credit cards to find out which option is best for you.
Take advantage of miles, points and perks with a card that best fits your lifestyle.
Here are our top picks for 2021.
A solid cashback card with no credit history required to apply for it.
Our top picks can help you build your credit without paying sky-high fees.
Our top picks for cards across 7 student categories, including international students, first-time cardholders and cashback.
The top cards often have cashback rewards of 5% or more. But which one is the best for you depends on how you spend.
Our top picks for cards with zero intro APR in 2021.
Compare 6 lenders to find one that’s a good fit for your needs.
The Best TD Bank credit cards are solid, but nothing special.
Here are our picks for the top travel cards on the market.
finder.com is an independent comparison platform and information service that aims to provide you with the tools you need to make better decisions. While we are independent, the offers that appear on this site are from companies from which finder.com receives compensation. We may receive compensation from our partners for placement of their products or services. We may also receive compensation if you click on certain links posted on our site. While compensation arrangements may affect the order, position or placement of product information, it doesn't influence our assessment of those products. Please don't interpret the order in which products appear on our Site as any endorsement or recommendation from us. finder.com compares a wide range of products, providers and services but we don't provide information on all available products, providers or services. Please appreciate that there may be other options available to you than the products, providers or services covered by our service.