Best secured credit cards in 2020

If you have poor or no credit, a secured card can be a step toward building your credit score and qualifying for an unsecured card with a lower APR. Some secured cards come with perks like reward programs, but most require a security deposit and have low credit limits.

Our card experts weigh the features, requirements and perks across secured cards to help you find the best card for your budget.

Best secured credit cards

Our experts gather secured cards we feel are most valuable for consumers this year. To compare these cards side by side, jump to our comparison table.

Best secured card for no credit check

OpenSky® Secured Visa® Credit Card

Finder Rating: 3.8 / 5

★★★★★

Credit recommended (300-669) Apply now on Capital Bank N.A.'s secure site

300
Min. credit score

$35
Annual fee

17.39%
variable
Purchase APR

From $200
Min. deposit

• Info
• Pros & cons
• Details

You'll pay a $35 annual fee for the OpenSky® Secured Visa® Credit Card. For the price, however, you'll find not only a reputable secured card from a provider that doesn't require a credit check for approval, but a secured card that offers intro APR on purchases.

• Build your credit. The card reports to all three major credit bureaus, which can help strengthen your credit. All you have to do is keep your utilization low and make timely payments.
• No credit check. OpenSky only uses your ID to confirm your identity — it won't do a credit pull.
• Credit line. You have full control over your credit line, as it's the sum of your security deposit. You can make a deposit from $200 up to $3,000.

• Annual fee. The card comes with a $35 annual fee.

Annual fee	$35
Minimum deposit required	Starting at $200
Purchase APR	17.39% variable
Balance transfer APR	N/A
Recommended minimum credit score	300

Best secured card for low APR

Green Dot primor® Mastercard® Gold Secured Credit Card

Finder Rating: 4 / 5

★★★★★

Credit recommended (300-579) Read review

300
Min. credit score

$49
Annual fee

9.99% fixed
Purchase APR

From $200
Min. deposit

• Info
• Pros & cons
• Details

While this card has a high $49 annual fee, it offers a 9.99% fixed purchase APR that's much lower than you'll find with other secured cards. Green Dot Bank, the issuer, says you'll be approved after verifying your identity and address and funding a savings account.

• Build your credit. The card reports to all three major credit bureaus — Equifax, Experian and TransUnion. If you keep your utilization low and pay your balance on time, you'll be on a good track to build your credit.
• Fixed APR. Most cards come with a variable APR, but with this card, you'll get one of the lowest APRs at 9.99% fixed.
• No minimum credit score. You can apply without credit history or if you have a poor credit score.

• Annual fee. You'll pay an annual fee of $49 for the card.

Annual fee	$49
Minimum deposit required	Starting at $200
Purchase APR	9.99% fixed
Balance transfer APR	N/A
Recommended minimum credit score	300

Best secured card for low deposit and no annual fee

Capital One® Secured Mastercard®

Finder Rating: 4.4 / 5

★★★★★

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

---

580
Min. credit score

$0
Annual fee

26.99% variable
Purchase APR

From $49
Min. deposit

• Info
• Pros & cons
• Details

The possibility of depositing less than your credit limit is what makes this card unique. You can receive a $200 starting credit limit with an initial deposit of $49, $99 or $200.

• You'll pay no annual fee to use this card.
• Depending on your credit, you may pay a security deposit as low as $49 and still get a $200 credit limit.
• Make your first 5 monthly payments on time and Capital One will raise your credit limit.

• This card features a high APR of 26.99% variable.
• No rewards.

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 rewards

Discover it® Secured

Finder Rating: 4.4 / 5

★★★★★

Credit recommended (300-669) Read review

300
Min. credit score

$0
Annual fee

22.99% variable
Purchase APR

From $200
Min. deposit

• Info
• Pros & cons
• Details

The Discover it® Secured has long been the best choice in this category. It offers cashback rewards, which is rare among secured cards.

• Build your credit. Responsible use of the card will help you build your credit score, as the card reports to all three major credit bureaus — Equifax, Experian and TransUnion.
• Earn cash back. Earn 2% back on dining and gas on up to $1,000 in combined purchases each quarter. On everything else you buy, you'll earn 1% cash back.
• Intro APR period on balance transfers. Enjoy a 10.99% intro APR period on balance transfers for 6 months. After that, a variable APR of 22.99% applies.

• Balance transfer limitation. You must make your balance transfers by a rolling deadline to use the intro APR period.

Annual fee	$0
Minimum deposit required	Starting at $200
Purchase APR	22.99% variable
Balance transfer APR	10.99% intro for the first 6 months (then 22.99% variable)
Recommended minimum credit score	300

Best secured card for military members

nRewards® Secured Credit Card

Finder Rating: 4.4 / 5

★★★★★

Credit recommended (300-579) Read review

300
Min. credit score

$0
Annual fee

18% variable
Purchase APR

From $200
Min. deposit

• Info
• Pros & cons
• Details

The nRewards® Secured Credit Card offers 1x points on all purchases, and it's light on fees. After six months, Navy Federal Credit Union reviews your account to see if you're eligible for an upgrade to an unsecured card.

• No annual fee. You won't pay an annual fee to use this card.
• Few miscellaneous fees. There are no fees for balance transfers, foreign transactions or cash advances.
• Rewards. You can earn 1 point per dollar spent on eligible purchases.

• Membership required. You'll need to be a NFCU member to qualify for this card.

Annual fee	$0
Minimum deposit required	Starting at $200
Purchase APR	18% variable
Balance transfer APR	18% variable
Recommended minimum credit score	300

Looking for a secured card? Take our quiz to find the best fit.

Top secured credit cards

While secured cards don’t typically offer the breadth of features and perks that come with unsecured cards, you’ll still find a decent variety of secured cards to suit your needs.

Note that you may need to pay the security deposit when you apply for the card. If you don’t have enough to fund
the deposit, learn how to save up for a deposit before you apply.

Sort by:

Name	Product	Filter values	Minimum deposit required	Purchase APR	Annual fee	Recommended minimum credit score
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 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...
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...
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...
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...
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...
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...
CardMatch™ from creditcards.com			See terms	See issuer's website	See terms	300	Use the CardMatch tool to find cards you're likely to qualify for with your credit score, without a hard pull on your credit.	See offer View details	Compare	loading Fetching your data...

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What type of card do you need?

No Annual Fee

Low Deposit

No Credit Check

Looking for a secured card? Take our quiz to find the best fit.

How to choose the best secured credit cards

On top of a secured card’s APR, you’ll want to look at the following card features before making your choice:

Are secured cards worth it?

Because secured cards are designed for building credit, there are some trade-offs to consider.

You asked, we listened: Top 5 common questions

Secured credit cards function similarly to standard cards, but with some important distinctions. Here are the five most common questions we receive on the subject.

1. Do secured credit cards really help you build credit? With responsible use, yes. They’re designed to limit your total credit card spending while you work on improving your credit score. They also typically report to all three credit bureaus.
2. How much will I need to deposit for a secured card? The deposit amount depends on the specific credit card as well as your existing credit score.
3. Why do I need to place a security deposit? Your security deposit serves as collateral for the card issuer in the event that you fall behind or default on your account.
4. Can you get denied for a secured card? Yes. Depending on your financial and credit history, an issuer can deny you a secured credit card. Read our guide on what to do if your application is denied.
5. How many secured cards should I have? If you can manage and use them responsibly, having more than one secured card can increase your total limit and improve your utilization ratio.

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.

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• 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 her/his 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.

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• 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 terms and conditions of the card to make sure 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.

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• 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; however, to assert such with a conviction would be tenuous because other factors also play a role.

The main thing however is that people new to credit or attempting to repair bad credit should consider 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.

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• 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 spend more money fast by 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 do not 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.

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• 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 get denied is the high risk of default creditors 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 this type of options.

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Secured credit card statistics

How many Americans use secured cards, why they use them and more.

Finding access to credit is a big part of life in America. When applying for a loan or even renting an apartment, you’re often asked about your credit score. But if you don’t have any credit history, or you need to rebuild your credit, you may run into issues getting the things you need. That’s where secured credit cards can be helpful.

As of the end of 2018, there were roughly 4 million open secured credit card accounts, according to a Federal Reserve Bank of Philadelphia discussion paper. And according to that report, the number of secured credit cards has been steadily rising since September 2012.

Who has a secured credit card?

Secured cards are designed to help those with bad or no credit scores gain access to credit, which is why in 2018, 44.7% of secured credit cards were opened by someone with no credit history, according to the Federal Reserve Bank of Philadelphia. Following those with bad or no credit are cardholders with poor credit (28.7%). This means that almost three-quarters (73.4%) of the secured credit market in 2018 was made up of those with either a sub-579 FICO score or no credit score at all.

This trend has held true since at least 2016, with those lacking credit or with bad credit making up at least 73% of those with a secured card. The only major change: People with poor credit used secured cards at a rate that was 2.8 percentage points higher in 2018 than in 2016, while people with no credit saw a 2.6 percentage point decrease.

• Average credit score of people opening a secured card - Visual
• Average credit score of people opening a secured card - Data

Average credit score of people opening a secured card

	2016	2017	2018
Excellent/Good	12.4%	11.9%	11.7%
Fair	14.4%	15.0%	14.9%
Poor	25.9%	28.1%	28.7%
No credit score	47.3%	45.0%	44.7%

Source: Moving into the Mainstream, Federal Reserve Bank of Philadelphia. Averages based on a 1.5% random sample of 95% of open secured accounts in the Y-14M monthly reports as of November 2018.

Secured cards are especially common among younger cardholders since credit is something you build over time. Secured cards represent 7% of all mass-market cards issued to people under the age of 35, according to the 2017 Consumer Credit Card Market from the Consumer Financial Protection Bureau (CFPB).

What limit can you expect with your secured card?

Credit limits on secured cards are much lower than traditional credit cards. 75% of people opening a secured card account are given a limit of $200, $300, or $500. Often holding onto your card and making on-time payments can result in an increased credit limit, but this depends on your credit score.

For example, if you didn’t have a credit score when you opened your secured credit card, your limit might have grown by an average of $70 over two years, whereas if you’d had a poor score, you would have seen your limit increase an average of $150, according to the CFPB’s 2017 Consumer Credit Card Market report.

How do credit limits compare between secure and unsecured credit cards?

The average credit limit of a cardholder with an unsecured card — meaning total access to credit, and not just on a single card — is $24,032. Whereas the average limit for cardholders with a secured credit card is just $1,379.

• Average credit limit on existing accounts - Visual
• Average credit limit on existing accounts — Data

Average credit limit on existing accounts

	Average credit limit on existing accounts
Secured cardholder	$1,379
Unsecured cardholder	$24,032

Source: The Secured Credit Card Market, Federal Reserve Bank of Philadelphia. Averages based on secured accounts in the Y-14M monthly reports from June 2012 to December 2015.

How much are people spending with their secured cards?

With the majority of credit limits under $500, secured card balances are far lower than unsecured credit cards. The average balance of a secured card three months after opening is around $200, according to the CFPB. That balance tends to increase over the lifespan of the card, increasing to $350 two years after opening — roughly 75% higher.

• Average balance for secured cards over time - Visual
• Average balance for secured cards over time - Data

Average balance for secured cards over time

Months since account opening	Average balance per account
3	$197.39
6	$225.18
9	$285.04
12	$321.38
15	$342.76
18	$327.79
21	$340.62
24	$355.58

Source: The Consumer Credit Card Market 2017, Consumer Financial Protection Bureau. Averages based on secured accounts in the Y-14M monthly reports from June 2012 to November 2017.

Those with secured cards actually use less of their available credit than people with unsecured cards, according to a 2016 discussion paper The Secured Credit Card Market from the Federal Reserve Bank of Philadelphia. The average utilization of existing credit for someone with a secured card is just 14.5% versus 31.4% for those with an unsecured card.

• Average utilization of existing credit - Visual
• Average utilization of existing credit - Data

Average utilization of existing credit

	Average utilization of existing credit
Secured cardholder	14.5%
Unsecured cardholder	31.4%

Source: The Secured Credit Card Market, Federal Reserve Bank of Philadelphia. Averages based on secured accounts in the Y-14M monthly reports from June 2012 to December 2015.

Can you get a secured card with a low APR?

Unfortunately, the majority (95%) of secured cards come with APRs of between 15% and 25%, according to a 2016 report from the Federal Reserve Bank of Philadelphia.

How do unsecured and secured cards compare on purchase APR?

While unsecured and secured cards can come with similar APRs, you can find lower purchase APRs among unsecured card options. You may even find yourself an unsecured card with an APR in the single digits.

• Most common purchase APR accross cards - Visual
• Most common purchase APR accross cards - Data

Most common purchase APR accross cards

Purchase APR	% of secured cards	% of unsecured cards
0%	2.4%	3.9%
0.1% – 10%	0.0%	5.1%
10.1% – 15%	1.4%	24.7%
15.1% – 20%	31.6%	22.1%
20.1% – 25%	64.3%	29.8%
>25%	0.2%	14.4%

Source: The Secured Credit Card Market, Federal Reserve Bank of Philadelphia. Averages based on secured accounts in the Y-14M monthly reports from June 2012 to December 2015.

Do secured credit cards have annual fees?

It’s difficult to find a secured card without an annual fee. According to the Federal Reserve Bank of Philadelphia discussion paper, 83% of secured cards come with an annual fee and another 2% come with monthly fees.

Cards with annual fees cost on average $29.60 for the use of their card, and those with monthly fees cost about $3 a month.

• Types of fees for secured cards - Visual
• Types of fees for secured cards - Data

Types of fees for secured cards

Fee type	% of secured cards
Annual	83%
Monthly	2%
None	12%
Not reported	3%

Source: The Secured Credit Card Market, Federal Reserve Bank of Philadelphia. Percentages based on secured accounts in the Y-14M monthly reports from June 2012 to December 2015.

How can a secured card help you build your credit?

After opening an account, it takes the median consumer about six months to establish credit. According to the Federal Reserve Bank of Philadelphia, 25% of those who took out a secured card without credit history were able to graduate to an unsecured card with an initial credit score of 728 or higher — or an excellent credit score.

Cardholders trying to rebuild a spotty credit score were able to add an average of 24 points to their score over a two-year period. It’s not all sunshine and rainbows, however, as those who closed their secured card or were moved to “charged-off” status after nonpayment saw a credit score drop of 40 points on average.

• Changes in median credit scores over time - Visual
• Changes in median credit scores over time - Data

Changes in median credit scores over time

Account grouping	Median credit score at opening	Median credit score after two years	Change in score
Open	589	613	+24
Closed with a balance	569	527	-42
Closed without a balance	568	522	-46
Charged off	574	514	-60

Source: The Secured Credit Card Market, Federal Reserve Bank of Philadelphia. Based on secured accounts in the Y-14M monthly reports from June 2012 to December 2015.

How long do people typically have a secured card?

About half of those with no credit history and a third of people with credit at the time of opening a secured account were able to open an unsecured card within two years, according to the 2019 discussion paper Moving Into the Mainstream, from the Federal Reserve Bank of Philadelphia.

• % of secured cards that graduate to an unsecured card within 2 years - Visual
• % of secured cards that graduate to an unsecured card within 2 years - Data

% of secured cards that graduate to an unsecured card within 2 years

Credit score at account opening	% of secured cards that graduate within 2 years
No credit score	31.4%
Excellent/Good (620+)	27.6%
Fair (580-619)	19.4%
Poor (550-579)	13.7%
Very Poor (300-549)	10.0%

Source: Moving Into the Mainstream, Federal Reserve Bank of Philadelphia. Graduation rates based on secured accounts that were opened in 2016 and graduated within 2 years according to the Y-14M monthly reports from Jan 2016 to December 2018.

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