Best Secured Credit Cards
Find the best secured credit card to begin rebuilding your credit.
Compare the different offers from our partners and choose the card that is right for you.
If used responsibly, secured credit cards can help you raise your credit score and improve your financial standing. Secured credit cards are a tool for people who already have credit problems or need to build a credit history, so it's important to understand exactly how secured credit cards work and which are the best ones available to you.
U.S. News' Best Secured Credit Cards
Best Secured Credit Cards of 2019
- Capital One® Secured Mastercard®: Best feature: Access to a higher credit line after your first five on-time monthly payments.
- Discover it® Secured: Best feature: Cash back rewards.
- Citi® Secured Mastercard®: Best feature: No annual fee.
- Bank of America BankAmericard® Secured Credit Card: Best feature: Monthly FICO credit score access for free.
- Wells Fargo Secured Credit Card: Best feature: No penalty APR.
- U.S. Bank Secured Visa® Card: Best feature: Interest-earning security deposit.
Capital One® Secured Mastercard®
Best feature: Access to a higher credit line after your first five on-time monthly payments.
-
Credit Needed ?Limited, bad
-
APR26.99% (Variable)
-
Annual Fee$0
Highlights
-
No annual fee, and all the credit building benefits with responsible card use
-
Unlike a prepaid card, it builds credit when used responsibly, with regular reporting to the 3 major credit bureaus
-
You will get an initial $200 credit line after making a security deposit of $49, $99, or $200
-
Get access to a higher credit line after making your first 5 monthly payments on time with no additional deposit needed
-
Easily manage your account 24/7 with online access, by phone or using our mobile app
-
It's a credit card accepted at millions of locations worldwide
-
Consumers with limited or bad credit can get access to a $200 credit line with a $49, $99 or $200 security deposit with the Capital One® Secured Mastercard®.
-
You can get access to a higher credit line after making your first five monthly payments on time.
-
This card has no annual fee, and benefits include free monthly credit score access, extended warranty coverage, auto rental insurance and travel accident insurance.
Discover it® Secured
Best feature: Cash back rewards.
-
Credit Needed ?Limited/bad credit
-
APR25.24% Variable
-
Annual Fee$0
Highlights
-
No Annual Fee, earn cash back, and build your credit with responsible use.
-
It's a real credit card. You can build a credit history with the three major credit bureaus. Generally, debit and prepaid cards can't help you build a credit history.
-
Establish your credit line by providing a refundable security deposit from $200-$2500 after being approved. Bank information must be provided when submitting your deposit.
-
Automatic reviews starting at 8 months to see if we can transition you to an unsecured line of credit and return your deposit.
-
2% cash back at gas stations and restaurants on up to $1,000 in combined purchases every quarter, automatically. Plus, earn unlimited 1% cash back on all other purchases.
-
Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score
-
Intro Offer: We automatically match all the cash back you've earned at the end of your first year.
-
Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
-
The Discover it Secured requires a minimum security deposit of $200, but cardholders seeking a higher credit line have the option to select a deposit amount of up to $2,500 at the time of account opening. The security deposit is refunded to the cardholder when Discover determines that the account can be transitioned to a traditional credit card without the need for a security deposit.
-
Cardholders will earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1% cash back. The card offers unlimited 1% cash back on all other purchases.
-
At the end of the first year, Discover will automatically match all cash back earned.
Citi® Secured Mastercard®
Best feature: No annual fee.
-
Credit Needed ?New to credit
-
APR24.74%* (Variable)
-
Annual Fee$0
Highlights
-
The Citi® Secured Mastercard® is a no annual fee credit card that helps you build your credit when used responsibly.
-
Unlike a debit card, it helps build your credit history with monthly reporting to all 3 major credit bureaus. Once available, you will also have free access to your FICO score online.
-
Use your card anywhere Mastercard® is accepted — worldwide.
-
A security deposit is required. Once approved, your credit limit will be equal to your security deposit (minimum of $200).
-
Get help staying on track with Auto Pay and account alerts.
-
With Flexible Payment Due Dates, you can choose any available due date in the beginning, middle or end of the month.
-
Manage your account 24/7 online, by phone, or in our mobile app.
-
The Citi Secured Mastercard is a secured card for those who are new to credit, and the card reports activity to all three major credit bureaus.
-
The card charges no annual fee, but cardholders must pay a security deposit between $200 and $2,500.
-
Card benefits include identity theft support and free monthly FICO credit score access.
Bank of America BankAmericard® Secured Credit Card
Best feature: Monthly FICO credit score access for free.
-
Credit Needed ?Poor/limited/no history
-
APR25.24%
-
Annual Fee$0
Highlights
-
A secured credit card designed to help establish, strengthen or rebuild credit
-
A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account.
-
Your maximum credit limit will be determined by the amount of the security deposit you provide, your income and your ability to pay the credit line established. If you provide a deposit that exceeds the calculated maximum amount based on your ability to pay, a check will be returned to you for the difference.
-
Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking. Opt-in to receive your score, the key factors affecting your score, and other information that can help you keep your credit healthy.
-
We'll periodically review your account and, based on your overall credit history (including your account with us and other credit cards and loans), you may qualify to have your security deposit returned. Not all customers will qualify.
-
Access to credit education on topics like using credit cards responsibly, budgeting and more
-
Designed for those who are looking to establish or rebuild their credit history, the Bank of America BankAmericard® Secured Credit Card is a secured card with a $0 annual fee.
-
This card requires a minimum $300 security deposit, but Bank of America will periodically review your account and may return your deposit.
-
Cardholder benefits include zero-liability protection, monthly FICO credit score access for free and a temporary credit card number for online shopping security
Wells Fargo Secured Credit Card
Best feature: No penalty APR.
-
Credit Needed ?Poor/limited/no history
-
APR21.24%
-
Annual Fee$25
Highlights
-
Establish credit history with responsible use
-
Get started, if approved, with as little as a $300 security deposit
-
Card activity is shared with major credit bureaus to help build credit history
-
Your security deposit is equal to your credit line – if you deposit $300, your credit line is $300
-
Available to both U.S. citizens, permanent residents, and nonresident aliens
-
Access to your FICO Credit Score, credit education and tools with Wells Fargo Online
-
Zero Liability protection
-
Wells Fargo Secured Credit Card holders can begin to build or rebuild their credit history with at least a $300 refundable security deposit.
-
The card charges a $25 annual fee, and it has a 21.24% variable APR on purchases and balance transfers.
-
Card benefits include free credit education tools, travel and emergency assistance services, free FICO credit score access and cell phone protection.
U.S. Bank Secured Visa® Card
Best feature: Interest-earning security deposit.
-
Credit Needed ?Poor/limited/no history
-
APR21.24%
-
Annual Fee$29
Highlights
-
Enroll in Online Banking and get your TransUnion Credit Score at no cost and receive email alerts when there are big changes to your credit report.
-
Everyone’s schedule is different. So it’s handy to be able to pick your credit card due date.
-
Zero Fraud Liability
-
Detects and notifies you of any unusual card activity to help prevent fraud.
-
24/7 Account Access
-
Avoid interest and late fees with automatic payments that put you in control. It can also help you pay down a balance faster.
-
The U.S. Bank Secured Visa® Card has a $29 annual fee and is designed for those looking to establish or improve their credit.
-
The card charges no penalty APR and has has a standard APR of 21.24% variable on purchases and balance transfers.
-
Cardholders receive various travel and shopping benefits, including travel and emergency assistance services, an auto rental collision damage waiver, extended warranty protection and free TransUnion credit score access.
Methodology: U.S. News analyzed nationally available secured credit cards from credit card issuers in the J.D. Power 2018 Credit Card Satisfaction Study top 10. Cards were evaluated based on card type, security deposit, annual fee and J.D. Power ranking.
Do You Have Bad Credit?
Your financial standing is defined in large part by your credit score, which is a numerical grade of your creditworthiness. Lenders use your score when making their approval decisions to determine how likely you are to repay debts. There are a few different credit scoring models used by the financial industry, but the FICO score is by far the most commonly used.
Your FICO score is calculated based on the data in your credit report collected by the three major credit bureaus: Equifax, Experian and TransUnion. That data includes things like your outstanding debt, payment history, defaults, judgements and bankruptcies.
FICO score ranges are:
- Exceptional (800+)
- Very good (740-799)
- Good (670-739)
- Fair (580-669)
- Poor (579 and below)
Bad/poor credit generally refers to scores of 579 and below. When you have a bad credit score, you have very little creditworthiness. It can be nearly impossible to get approved for a traditional credit card with bad credit. The same is true if you are a new user with no credit history at all.
What Are Secured Credit Cards?
"A secured credit card can be a great way to establish or rebuild credit," says Beverly Harzog, consumer finance analyst and credit card expert at U.S. News. "But it's important to read the fine print. Some of these cards come with annual fees and other costs."
For those unable to qualify for unsecured credit cards with good terms, secured cards can be a good first step toward improving your credit score. Designed specifically for people with bad credit or no credit, secured credit cards operate similar to regular credit cards, except that they are secured with a cash deposit. The deposit is a protection for the bank/lender if the cardholder ever defaults on a payment. If you have a secured credit card and you don’t make your payments, the credit card company can use your deposit and you won’t get it back.
How do secured credit cards work?
To open a secured card, you must make a cash deposit with the creditor. The creditor places your deposit into a secure account that you can’t access for as long as the card is active. If you miss any payments, the lender withdraws from that account to pay the overdue balance.
It is important to remember that a secured card is not a prepaid card. You are not withdrawing from your deposit every time you use it. Just like an unsecured credit card, you must pay the balance, a portion of the balance or at least the required minimum payment by the due date. If you miss enough monthly payments, the creditor will use your deposit to pay your balance. If that happens, the effect on your credit score is the same as if you defaulted on an unsecured card.
"Do whatever it takes to make your payments on time," says Harzog. "A secured credit card can help you rebuild your credit, but if you don't use the card responsibly, it can make your credit score even worse than it already is."
Benefits of secured cards:
- Easier approval because of lower creditor risk
- Lower APR than most traditional cards designed for people with bad credit
- Lower credit limits reduce the risk of overspending
- You can usually qualify for an unsecured credit card with a higher credit limit and no deposit if you demonstrate responsible credit use with a secured card.
Drawbacks of secured cards:
- High initial cash deposit
- Low credit limits can result in a high utilization ratio, which hinders your credit score
Find a complete list of the Best Credit Cards for Bad Credit and learn about more strategies for rebuilding your credit.
Choosing a Secured Credit Card
For secured credit cards, the most important features are:
- Annual fee
- Credit limit
- Initial deposit
The annual fee and initial deposit are money you’ll have to spend even if you never use the card, and a card’s credit limit can significantly influence your credit score.
Annual fee
There are very few secured credit cards that don’t charge an annual fee. The fee is charged directly to the balance either in one large sum or divided into monthly installments, starting on the day you open the card.
Credit limit
Credit limits on secured cards are typically much lower than traditional cards, so once you’ve established a history of making on-time payments, you should ask for a credit limit increase. With a higher credit limit, you can lower your credit utilization ratio, which can improve your credit score. Many secured cards will evaluate a cardholder’s payment history after five to 12 months.
Initial deposit
The security deposit must be paid before the card is opened. The amount will vary based on your credit history, but it is typically around $200 to $500 and often equal to the card’s credit limit. The deposit is a significant upfront expense that you won’t get back until the account is either closed or upgraded to an unsecured card.
To save money and protect your credit score, you should look for a card with the lowest possible annual fee and security deposit. Additional features to consider include:
- Additional fees such as monthly maintenance and initial processing fees
- Ability to upgrade to an unsecured version of the card
- APR/penalty APR
- Credit bureau reporting
- Prequalification
- Rewards
For complete information on all of these card features and how to evaluate them, read the U.S. News guide to Best Credit Cards for Bad Credit.
Editorial opinions are those of U.S. News and have not been previously reviewed, approved or endorsed by any other entities, such as banks, credit card issuers or travel companies.