Need to build or rebuild your credit score and are not sure what to do? Worry no more, as secured credit cards are your perfect answer. These differ from unsecured credit cards in that you need to pay a deposit equal to or more than the secured credit card limit upfront when you open the account.
This money becomes your collateral every time you use your credit card. Failing to make timely payments lets your lender use that backup deposit to reimburse itself.
Remember, timely payments on your secured credit card give you an excellent foundation to slowly transition to unsecured credit cards.
If you made full-credit payments, you get these refundable deposits back on account closing. With so many secured credit card options available, selecting which secured credit card to try might be challenging. Some ask for annual fees for bonuses and perks, while others don’t. Each secured credit card’s APR (Annual Percentage Rate) also varies.
Let’s compare the 10 best-secured credit cards regarding their top features. If you’re new to credit cards and want to understand how they work, check out our guide on How Credit Cards Work
What are Secured Credit Cards?
Secured credit cards work similarly to traditional credit cards but with one important difference. In order to obtain a secured credit card, you must deposit a refundable security deposit. Secured cards serve as a safety net for the issuer, allowing those with poor credit or no credit history to qualify. By responsibly using the card and making on-time payments, you build a positive credit history, which increases your credit score.
The 10 Best-Secured Credit Cards
Here is our carefully selected list of the best-secured credit cards on the market:
1. Capital One® Secured Mastercard®
The Capital One® Secured Mastercard® is an excellent choice for those looking to rebuild their credit. On-time payments give cardholders the option of advancing to an unsecured card.
Top Features
Annual fee: $0
APR: 30.49%
Security deposit: Typically, the minimum security deposit required is $49, $99, or $200.
Others: You can earn unlimited 1.5% cash back on every purchase. No foreign transaction fees. If you make a purchase outside the U.S., you will not be charged a transaction fee. “Learn More”
2. OpenSky® Secured Visa® Credit Card
The OpenSky® Secured Visa® Credit Card is a great option for individuals seeking to rebuild their credit without worrying about a credit check.
Top Features
Annual fee: $35
APR: Intro 0% APR First 6 Months
Security deposit: Refundable $200 security deposit*
Others: Get Rewarded As You Build Credit No Additional Credit check “Learn More”
3. SDFCU Savings Secured Visa Platinum Card
This card comes on top of the secured credit card list because of its lower than average APR. Did you know a 16.74% APR makes this card ideal for those looking for the lowest percentage? The Federal Reserve’s latest data shows that its APR is about 4% lower than the average rate for most credit cards (20.92%).
Top Features
Annual fee: $0
APR: 16.74%
Security deposit: $250
Others: FlexPoint Rewards, where you get 1 point for every $1 spent, a decent grace period on purchases. “Learn More”
4. Chime Credit Builder Secured Visa® Credit Card
Chime Credit Builder Secured Visa® Credit Card offers zero annual fees and APR. Security deposits are also not subject to a minimum amount. It is best for those trying to repair their credit score or rating, as Chime® doesn’t check your credit rating to get approved for this secured visa card. They only mention your credit activities to the three main credit agencies, i.e., Equifax, TransUnion, and Experian.
Top Features
Annual fee: $0
APR: 0%
Security deposit: $0
Others: You build credit free of cost on your daily purchases. The money moved to the Credit Builder secured account is how much you can spend with the card. It becomes the security deposit. “Learn More”
5. First Tech Platinum Secured Mastercard®
First Tech Platinum Secured Mastercard® is ideal for people trying to learn positive credit habits by making their credit payments on time. So, you get the minimum possible late payment fee. On top of that, a zero annual fee and a lower APR make this secured credit card attractive for many users.
Top Features
Annual fee: $0
APR: 14%, but not exceeding 18%, as it varies with the prime rate.
Security deposit: Refundable deposit ranging from $500–$25,000
Others: Reward card where you get 1 point for each dollar spent on purchases and no hidden costs or transfer fees. “Learn More”
6. Bank of America® Customized Cash Rewards Secured Credit Card
Bank of America’s Customized Cash Rewards Secured Credit Card comes fourth on our list mainly for its excellent reward system and high credit limit. A zero annual fee further enhances this secured card’s appeal. You build credit while earning back cash in any category you like. Here, you can earn back cash in any category at 3%, such as gas, drug stores, online shopping, etc. A 2% cash back for wholesale clubs and grocery stores and a separate unlimited 1% cash back for all purchases.
Top Features
Annual fee: $0
APR: 27.99% (variable)
Security deposit: Ranging from $200–$5,000
Others: Free access to your FICO® Score, updated monthly, and overdraft protection is available. “Learn More”
7. Discover It® Secured Card
Discover It® Secured Card is the best choice for those wanting extra security features in their secured credit card. The cherry on top is the annual zero-dollar fee and a high credit limit. You get free protection from fraud by getting alerts about using your Social Security number (SSN) if it gets used on, say dark web and other online privacy protection for your personal data.
Top Features
Annual fee: $0
APR: 27.99% variable APR
Security deposit: Ranging from $200–$2,500
Others: real rewards in the form of cash back on different spending, acceptance almost nationwide across the US, and extra security features. “Learn More”
8. Citi® Secured Mastercard®
The Citi® Secured Mastercard® offers a straightforward path to building credit with the added benefit of potential credit line increases.
Top Features
Annual fee: $0
APR: 27.74% variable APR
Security deposit: Security deposits range from $200 to $2,500, depending on your credit limit.
Others: Citi® Secured Mastercard® helps you build your credit history by reporting monthly to all three major credit bureaus, unlike a debit card. “Learn More”
9. Total Visa Card
The Total Visa card is for people who don’t have great credit or maybe no credit history at all. All you need to apply is a checking account and a social security number. Just so you know, there are some fees, and the interest rate is high. But the upside is that you can actually use this card to help improve your credit. They also notify the big credit agencies every month about your payments. In the beginning, they’ll give you a $300 spending limit.
Top Features
Annual fee: $75 for the first year, then $48
APR: 35.99% (variable)
Security deposit: No security deposit
Others: With the TOTAL VISA card, you can earn cash-back rewards at merchants nationwide. In addition, you will receive monthly credit bureau reports. “Learn More”
10. Revvi Credit Card – The All-New Revvi Visa® Card
The Revvi Card is a credit card from MRV Banks. A $300 spending limit is set up for you, and if you want to increase it later, there’s a 20% fee. With Revvi, whenever you pay off what you owe, you get 1% cash back as a reward. Applying for the card takes just a few minutes to get an answer, and you can easily keep an eye on your account using their mobile app.
Top Features
Annual fee: $75 for the first year, then $48
APR: 35.99% (variable)
Security deposit: No security deposit
Others: Your initial spending limit is $300. Each year, you can increase it by 20% by adding more money to it if you would like. You can still apply for this card even with a credit score of just 550.
The major credit bureaus will be given access to your payment history. You receive 1% cash back on every transaction when you make something. And you may use the points you earn to lower your credit card bill. “Learn More”
How Credit Cards Work
Credit cards work like a special kind of loan that you can use over and over. When you buy something using a credit card, you don’t have to pay right away. Instead, you build up a debt on the card. You need to pay off this debt later to the credit card company.
Your credit card activity, like paying on time or having a big debt, gets reported to places that keep track of your money history. This history affects your credit score. If you miss payments or have a lot of debt, your credit score can drop. This might lead to extra fees and interest you have to pay.
Usually, credit cards give you some time to pay your debt without adding extra charges. This time is called the grace period. If you pay the full amount you owe during this time, you won’t be charged extra. But once the grace period is over, they start adding interest to what you owe.
Credit cards can be cool because you might get rewards when you use them. This can be stuff like cash back or points you can use for discounts. Some cards even protect your purchases or offer special benefits, like travel insurance. But remember, some cards might have a yearly fee.
Credit cards are also safer than debit cards when it comes to fraud. If someone steals your information and uses your card, you’re not usually responsible for more than $50. And most times, you’re not even responsible for that if you report it quickly.
So, credit cards can be handy, but it’s important to use them wisely and not spend more than you can pay back.
These secured credit cards were carefully chosen based on their advantages, ease of use, and potential to help users improve their credit scores. Our key considerations included the card’s credit-building features, transparency in terms, and customer feedback.
It takes time and responsible credit usage to build credit. Choose the secured credit card that aligns with your financial goals and start your journey toward a healthier credit score.
To learn more about how these cards fit into your overall credit-building strategy, don’t miss our article on the Top 10 Credit Score Building Tips You Need to Know.