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Secured credit cards
Compare over 100 secured credit cards.
Compare secured credit cards to rebuild credit
Use our table to compare secured credit credits for bad credit. These cards are designed to help you build your credit. Note, you may need to pay the security deposit when you apply for a card. If you don't have enough to fund the deposit, learn how to save up for a deposit.
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Here’s how secured credit cards work
A secured credit card is designed to help you build your credit score and works similarly to a traditional credit card. The main difference is you need to put down a security deposit before you can open a secured card.
The deposit helps protect the issuer in the event you fall behind on your payments or default. It allows the bank to extend credit to you when you otherwise wouldn’t qualify for a credit card. This gives you the opportunity to build your credit by showing you can responsibly manage a credit card.
Read our guide to learn how secured credit cards work.
- Compare and apply for a card. Browse all secured credit cards and choose the one that seems most appealing. You may have to provide your bank credentials during the application to pay the deposit.
- Raise your credit score Now that you have a card, use it to raise your credit score by paying your full balance on time each month.
- Graduate to an unsecured card Once you raise your credit score, you’re ready for a new card. Contact the bank to see if you can upgrade your card and get your deposit refunded.
Secured cards pros and cons
Because secured cards are designed for building credit, there are some trade-offs to consider.
Pros
- Low credit score requirements. Apply with a poor credit score of 300 or no credit history still get your card approval.
- Good for building credit. Use your card responsibly, pay your balance when it’s due and in time, and it will build your credit. Once you’re back on track, you can easily apply for a better card.
- Rewards. Earn cash back on your purchases with some secured cards. However, the rewards rate is lower compared to their unsecured counterparts.
- Control over your credit limit. Make a secured deposit that acts as your credit line. That way you can control the size of your credit line. Unfortunately, all card providers impose limits on the amount you can deposit.
- Upgrade to an unsecured card. You do more than simply build your credit with a secured card. You can also get an upgrade to an unsecured card if your provider finds your card activity worth rewarding.
Cons
- Upfront costs. Deposit a required sum to use the card. If you decide to close your account, the card issuer often returns this deposit.
- Annual fee. Pay an annual fee of up to $49 for the card. Luckily, not all secured cards come with an annual fee.
- Foreign transaction fee. Pay foreign transaction fees of up to 3% for each transaction made abroad or online with foreign merchants. That’s because secured cards aren’t designed for international travel.
- No intro APR period. It’s hard to find a secured card that offers a 0% intro APR period on purchases, balance transfers or both. Those cards that do offer this perk will likely have 6% or 9% intro APR period instead of 0%.
- No signup bonus. Often, you won’t get to earn a signup bonus of any kind. However, there are some cards that offer this perk, the Discover it® Secured card being one of the more generous options.
Which banks offer secured credit cards?
Banks | Do they offer a secured card? | Available secured cards |
---|---|---|
Amex | No | N/A |
Bank of America | Yes | BankAmericard® Secured Credit Card |
Barclaycard | No | N/A |
Capital One | Yes | Capital One Platinum Secured Credit Card |
Chase | No | N/A |
Citi | Yes | Citi® Secured Mastercard® |
HSBC | No | N/A |
Discover | Yes | Discover it® Secured |
U.S. bank | Yes | U.S. Bank Secured Visa® Card |
Wells Fargo | Yes | Wells Fargo Business Secured Credit Card |
What type of card do you need?
Ask the experts

- Andrei Simonov
- Chairperson of the Department of Finance
- Michigan State University
How effective are secured cards at helping consumers build their credit?
They are quite effective. In most cases, for clients with limited or no credit history at all, it is a great option to build their FICO score. In particular, secured credit cards are popular among recent immigrants. The advantage of a secured credit card is exactly the fact that it helps you to create a positive credit history. The disadvantage is cost. Those cards tend to be expensive, and many carry annual fees and high-interest rates.

- Travis Davidson
- Associate Professor of Finance
- Ohio University
What should a consumer do for their credit if they get denied a secured card?
If the goal of initially applying for a secured credit is to obtain credit (i.e. borrow money), then a consumer should apply for credit elsewhere (other credit cards, store cards, banks, etc.). However, if the consumer’s goal is to improve their credit, then I believe a mental shift is necessary. A person denied a secured card likely has a bad credit history, which is often caused by making late payments or missing payments completely. Dedicating oneself to paying bills on time – always and forever – might be the best way to improve credit enough to obtain a loan in the future.

- Daniel Folkinshteyn
- Associate Professor
- Rowan University
When is a secured credit card a good idea?
A secured credit card is a good option when one doesn’t have a good enough credit history to qualify for a regular credit card. You have to make an initial collateral deposit which serves as your credit line, and still have to pay it off every month to avoid getting charged interest and or late fees. It is important to look at the card’s terms and conditions to ensure they don’t charge egregious fees. There are many competitive secured credit card offers so you should shop around to get the best deal. An alternative is to just use a debit card attached to your checking account, though that would not help you build your credit score.

- Neel Das
- Associate Professor
- Appalachian State University
Can secured credit cards really help consumers raise their credit?
It could be assumed that a likely correlation exists between secured credit card usage and improved creditworthiness. But to assert such with conviction would be tenuous because other factors also play a role.
The main thing that people new to credit or attempting to repair bad credit should consider is using secured credit cards. While solely relying on such a card may not be the optimum tactic, this could be a move in the right direction to help consumers improve or raise their credit.

- Al Kamienski
- PhD Professor of Finance
- North Park University
Can spending more money help consumers build their credit score faster?
If a borrower hopes to increase their credit score quickly it is generally not advisable to quickly spend more money using a credit card. Financial institutions monitor ratios including total balance outstanding divided by the total credit available. If this percent indebtedness grows too quickly a financial institution may flag the account and accelerate risk management. Lenders don’t like uncertainty and are more comfortable with predictable behavior. One best practice for increasing a credit score quickly is to become more predictable by spending around 25% of a credit limit monthly and then paying off the balance in full at the end of every billing cycle. This demonstrates a history of on-time payments, credit avoids interest costs, and provides historical behaviors can increase a credit score and give confidence to future lenders.

- Julio Sevilla
- Assistant Professor in the Terry College of Business
- University of Georgia
How do secured credit cards help consumers build their credit score?
The key is access to credit. People with new or damaged credit scores struggle to get approved for some favorable credit products, which prevents them from building or rehabilitating their credit score. The main reason why they’re denied is the high risk of default creditors can sense. By securing their credit cards, this risk disappears or diminishes and the consumer now has an opportunity to have credit and build it through time with a positive and consistent track record. I would recommend consumers that have limited access to credit to cautiously consider these options.
Bottom line
Secured cards are a useful tool for building or rebuilding your credit score and moving on to an unsecured card. Your main goal is to spend responsibly, pay your balance on time and graduate to more beneficial credit cards as soon as possible
Back to topSteven Dashiell is Senior Writer, Personal Finance at Finder specializing in all things credit cards. With more than 300 articles under his belt, he aims to help readers embrace credit cards and maximize their rewards. Steve is studying to become a Certified Educator in Personal Finance, and is a frequent face on Finder’s YouTube channel, offering the latest in credit card hacks and advice. His expertise has been featured on numerous outlets, including U.S. News & World Report, NASDAQ, Time, CBS, Fox Business, Lifehacker, Martha Stewart Living and more.
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