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Your guide to secured credit cards
Build your credit to graduate to an unsecured card.
If you have a poor credit history, or don’t have a credit score at all, a secured card might be your best option for restoring or building financial health. Most secured cards require you put down a security deposit. This serves as your credit limit and collateral for your credit lender in the event you miss payments.
Use your secured card responsibly and pay your balance in full each month to start improving your score and graduate to an unsecured credit card.
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.
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Most secured cards require a deposit commensurate to your credit limit. This is not the case with Secured Mastercard® from Capital One®. Depending on your credit score, you can pay as little as $49 and still receive a $200 credit limit.
No annual fee. You won’t pay an annual fee to use this secured card.
Flexible minimum deposit. You’ll pay either $49, $99 or $200 for your security deposit, depending on your credit.
Credit limit upgrades. Capital One® might increase your credit limit if you pay for first five monthly payments on time.
High purchase APR. Pay your balance in full each month to avoid additional interest.
No balance transfers This card doesn’t allow balance transfers.
Secured cards don’t often come with a rewards or cashback structure, but the Discover it® Secured distinguishes itself with a rather generous cashback program. Not only will you earn cashback on purchases but Discover will match the cashback you earn during your first card year.
No annual fee. You’ll pay no annual fee to use this card.
Cashback. The Discover it® Secured is one of the few secured cards with a solid cashback program.
Intro balance transfer APR. You’ll have a 10.99% intro balance transfer APR for 6 months after your first transfer. After that, the APR will revert to a 25.24% variable APR.
High purchase APR. Pay your balance in full each month to avoid paying more interest.
Limited acceptance worldwide. Discover cards aren’t as widely accepted abroad as Mastercard and Visa cards.
The DCU Visa® Platinum Secured Credit Card offers one of the lowest variable APRs for purchases, balance transfers and cash advances among secured cards. You also won’t have to worry about a variety of fees, meaning you can concentrate on paying down your balance.
To apply for this secured card however, you’ll need to open a savings account at DCU.
No annual fee. You won’t pay an annual fee to use this secured card.
Low interest rate. The DCU Visa® Platinum Secured Credit Card sports a 13.75% variable APR on purchases, balance transfers and cash advances.
Few fees. You’ll pay no fees for balance transfers, cash advances or foreign transactions.
Savings account required. You’ll need to open a savings account with DCU to use this card.
Though secured cards are designed to help you build credit, applying for one typically requires a credit check nonetheless. This can affect your credit limit or even disqualify you for a card.
The OpenSky® Secured Visa® Credit Card skips the credit check, meaning you can apply even if you don’t have any credit.
No credit check necessary. You can apply no matter the state of your credit score.
Builds credit fast. OpenSky reports your card activity to all three major credit bureaus.
Low minimum deposit. You’ll need to deposit $200 as collateral for this card, which is fairly average for secured cards.
Annual fee. You’ll need to pay a $35 annual fee to use this card.
Foreign transaction fees. Using this card abroad will cost an additional 3% of the transaction.
Military members can experience some unique challenges when it comes to building and using credit, so a secured card such as the Navy Federal Credit Union® nRewards® Secured Credit Card helps mitigate those challenges. This card offers low fees, a low APR, a rewards program and a path to graduating to an unsecured card.
No annual fee. You won’t pay any 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.
Military only. You’ll need to be a member of the Navy Federal Credit Union to apply for this card.
No intro APR. While the purchase APR for this card is low, it applies immediately upon obtaining the card.
How we selected our top cards
We compared a number of factors shared across secured cards, including minimum security deposits, credit limits, intro and overall APRs, fees, qualification requirements and unusual perks such as rewards programs. Cards that outperformed others, or fulfilled unique niches, were selected for our list.
What’s changed in 2019
Among major providers, Discover and Capital One still lead the way in secured cards. You’ll also continue to find great options among lesser-known providers, especially if you’re looking for unique perks like low APR or no credit check.
Compare secured cards by…
Secured cards by minimum deposit
Secured cards by APR
Secured credit card deposit amounts and payment windows
Choosing the right secured credit card is important for making sure you end up with a card that will help you rebuild your credit score. Once you’ve reviewed your options, follow these simple steps to applying for a secured card.
Maximum security deposit. Look for a secured credit card that requires a high security deposit if you want a secured credit card with a large credit limit. Many limit the security deposit to $5,000, but there are a few that allow security deposits as high as $10,000.
Interest rate. Ideally, you will pay your balance in full each month. This is the best way to build a good credit score and avoid getting into debt. If there’s a chance that you’ll carry a balance rather than pay in full each month, choose a secured credit card with a low interest rate. You’ll pay less in finance charges if you have a low interest rate.
Reporting to the major credit bureaus. The goal of having a secured credit card is to build a new credit history or rebuild a bad credit history. Having a card that reports your account details to the major credit bureaus is a must. This way your payment history will be included in your credit report and will help improve your credit score.
The credit card issuer. Picking a secured credit card from a major credit card issuer is often a safe choice. Choose a secured credit card from a well-known, reputable credit card issuer to be sure you’re not falling for a scam.
How a secured credit card can help you build credit
Secured credit cards play an integral role in helping you build or rebuild your credit. They’re a useful first step your credit journey and bolster several of the financial areas lenders will look at when considering your application. Read more about how secured credit cards can help your credit score and compare your options to start restoring your credit score.
Read more about secured credit cards
Want to know more about secured cards and your available secured card options? Check out our guides and comparisons for even more info:
Secured cards are a useful tool for building or rebuilding your credit score and moving on to an unsecured card. Don’t get too comfortable while using it however – your main goal is to spend responsibly, pay your balance on time and graduate to more beneficial credit cards as soon as possible.
Frequently asked questions
Yes. While uncommon, particularly poor credit or a history of bankruptcy or other financial mishandling can disqualify you from obtaining a secured credit card.
There are a number of steps you can take after getting turned down for a secured card, including finding out why and boosting your score in other ways.
No. While the initial application may temporarily affect your credit because of the hard inquiry performed by the lender, actively using a secured credit card will only improve your score provided you use it responsibly.
Kevin Joey Chen is a credit cards writer at finder.com. He's passionate about helping you get your finances in order and travel the world like a pro. He's taken an extended trip around Europe as a digital nomad, gaining firsthand experience with exchange rates, ideal (and not-so-ideal) credit and debit cards, foreign transactions and budgeting strategies. He earned his BA from UC Davis and has written across many niches at Finder, including cryptocurrency, personal loans, car insurance, real estate and money transfers.
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