Secured credit cards with low deposits

To use a secured credit card you have to make a deposit, typically $200, which acts as your credit line. But to build credit, the card provider must report your activity to the three major credit bureaus — Experian, Equifax and TransUnion. After you improve your credit score, some providers may even return your deposit and upgrade your card to an unsecured one.

Should you decide to close your account before that, the bank will return your deposit as long as you don’t have outstanding debt. If a $200 deposit sounds like a lot, you can get a secured card with a deposit as low as $50, while still getting a $200 credit line. That said, it’s unlikely that you’ll qualify for such a low deposit if you have poor credit. But don’t despair, there are alternatives.

Secured credit cards with low or no deposit minimum

What is considered a low deposit?

The most common secured card deposit is $200. Anything below that is considered a low deposit. As of January 2021, the Capital One® Secured Mastercard® is the only secured card with the lowest deposit of $49, while still providing a $200 credit limit. However, if you have a poor credit score or no credit history, you will likely have to deposit either a $99 or a $200 to get a $200 credit limit with this card.

Are there secured cards with no deposit?

Technically, a secured card with no deposit is an unsecured card. There are unsecured cards for building credit, but they often come with higher annual fees than a secured card.

Here are three secured cards with low security deposits. See which ones you might qualify for based on your credit score.

	Deposit	Minimum credit score	Annual fee
Capital One® Secured Mastercard®	$49, $99 or $200 depending on your credit score	580	$0
Justice Federal Credit Union (JFCU) VISA Classic Secured Card	$100	300	$0
Self Visa® Credit Card	$100	300	$25

Alternatives to secured credit cards

If you can’t afford to shell out $200 right away, consider an unsecured card. Unsecured cards for building credit can cost anywhere from $0 to $299 annually. The cards that cost $299 are often paid in monthly instalments, but it’s best to avoid them altogether as they often come with many hidden fees.

Those who have good financials but don’t have a credit history, should consider applying for the Petal® 1 “No Annual Fee” Visa® Credit Card. It has no annual fee and it looks beyond your credit history to determine your eligibility.

Bottom line

The security deposit you put down for a secured card doesn’t have to wipe out your bank account. Even a $50 deposit secured credit card can help you rebuild your credit if you spend responsibly and pay off your balance at the end of each month. Check out our full secured credit card guide to learn more about how to use secured credit cards.

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 your credit.