Best Secured Credit Cards of 2024

All information about the Citi Secured Mastercard, Green Dot primor Mastercard Gold Secured Credit Card, Surge Platinum Secured Mastercard, Green Dot primor Visa Classic Secured Credit Card, and Green Dot primor Visa Gold Secured Credit Card has been collected independently by CreditCards.com and has not been reviewed by the issuer.

Comparing the best secured card offers

Best Secured Credit Cards of 2024

Best for flexible deposit: Secured Chime® Credit Builder Visa® Credit Card

Overview: If you’re eager to build credit but would rather avoid a traditional security deposit and typical credit card fees and interest, this card could be a great alternative.

Pros: There’s no pre-set limit and you can build credit through on-time payments without tying up tons of money in a security deposit or worrying about an annual fee and interest charges.

Cons: It doesn’t report on credit utilization — only payment history. Since utilization makes up 30% of your FICO score, it may take you longer to build credit with this card than with a traditional secured card. You’ll also miss out on perks like a rewards program and a clear upgrade path to an unsecured card.

Read our full Secured Chime Credit Builder Secured card review or jump to offer details.

Capital One Platinum Secured Credit Card: Best secured credit card for no annual fee

Overview: This card’s no annual fee makes it a great starter card. Also, the no foreign transaction fee (See rates and Fees) makes it a good card for overseas travel or making purchases on foreign sites.

Pros: The terms are fairly straightforward, and with responsible use, you could get a higher credit line in as soon as 6 months if you make your first 6 monthly payments on time.

Cons: The Capital One Platinum Secured Credit Card offers no sign-up bonus or ongoing rewards.

Read our full Capital One Platinum Secured Credit Card review or jump to offer details.

First Progress Platinum Elite Mastercard® Secured Credit Card: Best secured credit card for wide acceptance

Overview: Because the First Progress Platinum Elite is a Mastercard, it is widely accepted, making it a great go-to card for the traveler. (Note: You will pay a foreign transaction fee when using the card overseas.)

Pros: This card has a new expedited processing option, which is handy if you are looking to get your new card quickly. Also, the First Progress Platinum Elite Mastercard Secured Credit Card doesn’t require a minimum score or credit history.

Cons: While not as bad as others, this card’s fees can be onerous. It carries an annual fee of $29 and a variable APR of 24.74%.

Read more about The First Progress Platinum Elite Mastercard® Secured Credit Card or jump to offer details.

Capital One Quicksilver Secured Cash Rewards Credit Card: Best for flat-rate rewards

Overview: This credit card from Capital One combines consumer-friendly terms, like no annual fee and no foreign transaction fees (See rates and Fees), with unlimited 1.5% cash back on all purchases – a truly standout rewards program, particularly for a secured credit card.

Pros: You’ll be automatically considered for a higher credit limit in as little as six months with demonstrated responsible use.

Cons: If you’re trying to rebuild your credit and have mismanaged credit cards before, the opportunity to earn rewards could ultimately prove distracting. You might be better served by a no-frills secured credit, like the Capital One Platinum Secured Credit Card.

Read our Capital One Quicksilver Secured Cash Rewards Credit Card review or jump to offer details.

OpenSky® Secured Visa® Credit Card: Best secured credit card for no credit check

Overview: Unlike most credit cards, the OpenSky Secured Visa doesn’t require a credit check to apply. Also, you can build your credit history quickly because the card issuer reports to all three credit bureaus.

Pros: Your initial credit limit will be equal to your deposit and can go as high as $3,000 (minimum $200), plus the card’s APR is lower than average for a secured option at 25.14% (variable).

Cons: There’s an annual fee, as well as fees for foreign transactions, inactivity and garnishment.

Read our full OpenSky® Secured Visa® Credit Card review or jump to offer details.

Applied Bank Secured Visa® Gold Preferred® Credit Card: Best secured credit card for low interest

Overview: There’s no intro 0% offer, but this low-interest card comes with a top-of-the-line fixed APR: 9.99% for cardholders, and it won’t increase even if you’re late with a payment.

Pros: There’s no minimum score or credit check required in the application process. Also, your credit card habits will be reported to major credit bureaus Experian, Equifax and TransUnion – a perk that can really help boost your credit score.

Cons: The card comes with a $48 annual fee on top of the required refundable deposit. Plus, there are no rewards to be earned here.

Read more about the Applied Bank Secured Visa® Gold Preferred® Credit Card or jump to offer details.

Citi® Secured Mastercard®: Best secured credit card for building credit

Overview: Unlike a debit card, the Citi Secured Mastercard helps build your credit history because the issuer reports to all three major credit bureaus each month. Also, you may get free access to your FICO score online.

Pros: There is no annual fee which is always a plus.

Cons: The security deposit to get started with this card can vary from $200-$2,500 based on your credit qualifications. Also, like most other secured cards, there is no rewards program with the Citi Secured Mastercard.

Read our full Citi® Secured Mastercard® review.

Discover it® Secured Credit Card: Best secured credit card for upgrading

Overview: Along with earning cash back at gas stations and restaurants, this card gives you a chance to quickly graduate to an unsecured Discover card. You could be eligible to upgrade and get your Discover it® Secured Credit Card security deposit back after just seven months of on-time payments.

Pros: With no annual fee and rewards to boot, this secured product offers another reason why it’s a good card for the long haul – Discover will automatically review your account after seven months to see if they can transition you to an unsecured card.

Cons: There’s a lot to love about this card, but the regular APR is not one of them. The Discover it® Secured Credit Card’s variable APR is one of the highest among secured cards.

From our expert: “The Discover it® Secured card is noteworthy because it offers rewards – a rarity among secured cards,” says CreditCards.com Industry Analyst Ted Rossman. “With no annual fee and 2% cash back* at restaurants and gas stations and 1% everywhere else, this card is a compelling introduction into the world of credit.”

*2% on up to $1,000 in combined spend each quarter, then 1%

Read our full Discover it® Secured Credit Card review.

The Card with No Credit Check - The Secured Self Visa® Credit Card**: Best secured product for establishing credit

Overview: Whether you’re establishing your credit or repairing it, this unique card-and-account combination will help develop healthy credit habits while building a stronger credit mix – all without a credit check or history.

Pros: Besides just earning interest on your “loan” deposit, you’re building credit on both your loan and credit card while other secured cards don’t. This strengthens your credit since 10% of a good credit score comes from a solid credit mix. Plus, you can extend your credit limit based on your account’s savings progress and stay on top of your credit score with credit monitoring and account alerts.

Cons: Since the deposit is a “loan” and isn’t out-of-pocket, you can’t qualify for your card until you make three full consecutive payments and have at least $100 in your account without outstanding fees. On top of the yearly $25 annual card fee, be careful not to carry a balance since your monthly payments and credit card both carry APRs.

Read more about the The Card with No Credit Check – The Secured Self Visa® Credit Card.

First Progress Platinum Prestige Mastercard® Secured Credit Card: Best secured credit card for bad credit

Overview: This card doesn’t require a credit history or minimum credit score for approval. Your card use is reported to all three major credit bureaus to help you build credit. Cardholders are required to put down a refundable security deposit of at least $200 to serve as the card’s credit limit.

Pros: The card carries a regular variable APR of 14.74%, which is favorable for a secured credit card.

Cons: There’s a $49 annual fee, which is on the high side for a secured credit card.

Read more about the First Progress Platinum Prestige Mastercard® Secured Credit Card.

What are secured cards?

A secured credit card is a financial product designed for a consumer with bad credit or a limited credit history. It requires a refundable deposit in exchange for a credit limit. Most credit cards are unsecured credit cards, which means a security deposit isn’t required, but those aren’t always an option for everyone.

Putting it simply, a secured card is a credit card that requires a cash deposit to start the account. The cash deposit gives card issuers a reason to accept lesser credit scores, and because having a credit card is the easiest and fastest way to build credit, a secured card can be worthwhile. Some even come with rewards and perks on top of the long-term credit opportunity.

How do secured cards work?

To give you a line of credit, lenders want to know that you’re likely to repay what you borrow. In many cases, a positive credit history provides the proof that credit card issuers need. That’s why it can be difficult to get approved for a credit card with a poor or limited credit history. Enter secured credit cards.

Opening a secured account is initiated with a cash deposit, which acts as collateral rather than a balance that you can pull from to pay off your purchases. Once you’ve made your deposit, most secured cards act just like unsecured cards. You can use them to make purchases in person or online, and then routinely pay off those purchases with the ability to build your credit. If you don’t get your balances paid in a timely manner, you’ll face interest charges. In the worst-case scenario where you start to default on payments, only then would your issuer start to pull from your deposit.

There is one notable feature often seen with secured cards. Because you provide the card issuer with a security deposit upfront rather than getting in on your creditworthiness, you’ll often see issuers set your credit limit equal to the security deposit you provided. Depending on your financial flexibility, you might be able to deposit more than the minimum to start with a higher credit limit and improve your credit utilization ratio. After getting started, a secured card works like any other card – you have a revolving line of credit that replenishes as you make payments.

With some secured credit cards, you may be automatically considered for a credit line increase after several months of on-time payments. Not only does this give you more purchasing power, but it may also give your credit score a boost. Finally, once your score reaches the “good” range (a FICO score of 670+), you can begin shopping around for a credit card with better rewards, rates and benefits.

Pros and cons of secured cards

How to get a secured credit card

If your financial institution offers secured credit cards, you may be able to submit an application in person, by telephone, or through its website. If you’d prefer a card outside of your bank or credit union, you can compare offers online, see what cards you may prequalify for and apply independently. Here’s how it works:

1. Choose a card: First, do a little research to determine which secured card offer best aligns with your budget and spending behaviors. Secured cards may not always give much in the way of frills but that doesn’t mean you can’t land a competitive offer. You should also check if the card can graduate to an unsecured card down the line. Not all cards will come with this option but it’s a great feature to look for.
2. Determine your deposit amount: Once you’ve found a secured credit card that feels right for you, you must then decide how much of a deposit you’d like to put down. In most cases, your deposit amount will be equal to your credit limit. It’s tempting to pay the minimum amount required but think honestly about how much you’ll routinely spend. Remember, using too much of your credit line can hurt your score, and a single trip to the supermarket can quickly eat into a $200 card limit.
3. Apply: Submit your application. The issuer will ask you to provide personal details to confirm your identity such as your Social Security number, income, U.S. mailing address, and other basic information.
4. Monitor application status: In most cases, the card issuer will reach a decision in a matter of seconds. Sometimes you may have to wait to receive a decision by mail. Many card issuers also allow you to check the status of the application by telephone or by logging on to their website. Once you’ve been approved, you may then pay your deposit amount and the issuer will mail the credit card to you. If the issuer has denied your application, you’ll receive a letter from the issuer explaining the reason for the decision.

What credit score do you need to be approved for a secured credit card?

Because you’re not able to spend more than the cash deposit you provide, the issuer’s risk is much lower than it would be lending to someone with an unsecured credit card. For this reason, applicants with minimal, bad credit or no credit history at all are often approved for secured credit cards. To give you a better sense of what constitutes good, fair and bad credit, FICO goes by the following range:

• Very poor: 300 to 579
• Fair: 580 to 669
• Good: 670 to 739
• Very good: 740 to 799
• Exceptional: 800 to 850

Factors to consider when choosing a secured credit card

Your choice in credit cards should be based on your personal goals and finances. To start, consider that you’ll have to submit a cash deposit up front that costs around $200 or more. Think about your monthly expenses and determine what sort of credit limit makes the most sense for you while factoring in how much your budget allows for. If your card limit is on the lower end of the spectrum and your routine purchases eat up the majority of your available credit, understand that this type of high usage can hurt your credit score. In these situations, a high-limit secured card may be a better option.

Aside from spending habits, you’ll also want to consider any applicable rates and fees such as annual fees and foreign transaction fees, as well as any additional benefits. Though it’s rare, some secured cards do offer rewards, such as the Discover it® Secured Credit Card.

When it comes to selecting a secured credit card, here are a few things you should be particularly wary of:

• Hidden fees: While some fees are clearly marked at the top of cards’ rates and fees disclosures, lesser-known fees with credit-builder cards can be mentioned lower in the copy. They can have vague descriptions, such as “copy fee” or “telephone payment fee,” and can pile up fast. Heads up that secured cards can have the most fees.
• High interest rates: If you plan to carry a balance, you’ll want to avoid a card with high interest rates. Interest charges can quickly overtake the principal when the rates are steep. As is with any credit card, it’s best practice to avoid carrying a balance to keep away from the hurt on your wallet and credit score.
• High rewards, no credit-building features: Don’t be tempted by a good rewards rate if the card doesn’t come through for you in the areas where you need it. While rewards are a nice perk, your goal with a secured credit card is building credit, so you want to pick a card with features that help you do so without charging too many fees.

Who should get a secured card

• The new credit user. If you have no credit history, the selection of credit cards in your range might be slim. Luckily, most secured cards let you get started and give you the chance to establish your credit score and learn the necessary habits, like on-time payments and mindful spending.
• The inexperienced cardholder. Those who have opened a line of credit in the past but haven’t successfully built credit might be well-suited for a secured card. With the right card, responsible use should lead to a better score and the secured card’s features and benefits should help along the way.
  
• The credit re-builder. Someone who’s had to deal with debt, bankruptcy or anything else that causes a hurt credit score may benefit from what secured cards have to offer. Some cards come free from a credit check or minimum score to apply, giving people routes to rebuild no matter their past credit history.

Who should skip a secured card

• The high spender. Secured cards typically set your credit limit equal to your deposit, meaning you’ll likely not have much room for a large budget. Unless you plan to put down a sizable deposit, you’ll probably want to look elsewhere if you plan to swipe your card often.
• The established cardholder. If you have a good or even fair credit score, you might be better off with one of the traditional cards in your range. That being said, don’t fall for a card with bad terms just because it doesn’t require an initial deposit. The benefits and terms of some top secured cards can outshine their competitors.
• The rewards chaser. Though you can find solid cash back and specialized rewards with secured credit products, anyone looking for substantial rewards should look to more valuable options. If the top rewards cards or travel options aren’t yet in your credit range, a secured card can be a step on the journey to a generous traditional rewards card.

How to upgrade to an unsecured credit card

You probably don’t want to keep a secured card forever; for most people, secured credit cards are a bridge to bigger and better things. When you are able to upgrade, your next credit card should be a rewards card. If you have good credit and are able to pay your bill in full each month, passing up on a rewards card is like passing up on extra money, essentially. In addition to higher credit limits, you’ll have the luxury of earning cash back or travel points and access to exclusive perks like sign-up bonuses and 0% intro APR offers.

So how does upgrading your secured credit card work? Here’s what a typical timeline looks like:

1. Make a budget: Take a look at your monthly income, regular bills and shopping habits to set yourself a limit on how much you can comfortably spend each month. Planning ahead will set you up for success when it’s time to make payments. Aside from forgetfulness, overspending is the easiest way to fall behind on your payments.
2. Achieve good credit: If you’re serious about improving your credit, you can do so in no time by developing good credit habits. This includes paying your balance off fully and on time. It helps avoid interest and keeps your balance low, which is the best way to show your creditworthiness. A good way to do this is to place small charges on the card and pay them off quickly.
3. Look to boost your credit limit: If you can’t afford to submit a sizable deposit for some extra wiggle room on your spending, making the proper payments until you’re approved for a higher limit is necessary. However, some cards won’t automatically review your account for a credit line increase, so be sure to contact your provider and ask to raise the limit after you’ve set a trend of good habits for a few months. Not only does this give you leeway with your spending, but it will help your credit score by improving your utilization ratio.
4. Inquire about your upgrade options: Note that some cards, such as the Discover it® Secured Credit Card, let you transition to an unsecured card after a period of time, provided your payment habits are good. Check with your card issuer. Even if the upgrade option isn’t advertised, you may still be able to trade up. Heads up that you likely won’t be able to benefit from the new card as a new member, meaning you may not get benefits like the sign-up bonus. However, you will enjoy any ongoing rewards that the new card offers.
5. Look into applying for a new credit card: If you don’t qualify for an upgrade or there is a disadvantage to the card you qualify for, such as an annual fee you’re not interested in, start exploring cards from different issuers. It’s worth looking into a variety of the best credit cards to find the perfect fit for your lifestyle. Looking with a new issuer may also set you up to earn a sign-up bonus you couldn’t get otherwise.
6. Decide what to do with your old secured card: Once you’ve successfully graduated to a rewards-earning unsecured option, it’s time to look at whether to keep the secured card. However, only close it if there is a compelling reason, such as recurring fees that you want to break away from. Be mindful that when you close a card account, while your good payment habits don’t drop off your credit reports for 10 years, the average age of your cards will go down, which will impact your score for a while. If you elect to, there are some tips to avoiding hurting your score when closing a credit card that can be useful.

Alternatives to secured credit cards

Whether you don’t want to plunk down a security deposit or you don’t qualify for a secured card, there are a number of alternative ways to enjoy the convenience, the safety of a cashless life and even credit building. For example, with unsecured cards such as retail credit cards, you can avoid paying a deposit while having the opportunity to build your credit. A passbook loan or credit-builder loan also gives ways for consumers to build credit. And while you won’t build credit with debit cards and prepaid cards, some consumers prefer them for budgeting and convenience reasons.

Research Methodology

Methodology: We analyzed 228 secured cards to identify the top products available for consumers. Core criteria we considered in our evaluation include:

• Credit building features: With secured cards, you’ll often find features that can help you boost your credit score. We looked for options that will report your good habits, make it easy to track your score and more.
• Credit needed: Accessibility is a key selling point for secured cards, so we made sure to find the best choices that allow for all ranges of credit scores. Even if you have no credit history whatsoever, there are secured cards here that can help.
• Rates and fees: Some cards designed for poor credit scores feature penalizing fees and unfairly high rates. We avoided these as much as possible when selecting our top secured cards.

Other criteria used: Ease of application, ability to increase credit limits, deposit required, other benefits and features, customer service, security, rewards rates.

More information on secured credit cards

For more information on secured credit cards, continue reading content from our credit card experts:

• What is a secured credit card?
• What is the difference between secured and unsecured debt?
• How a secured credit card helped my score
• First credit card dilemma: Student card vs. secured card

**The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC.

About the Author

India Davis

India Davis is an editor specializing in credit cards and updates for CreditCards.com and Bankrate. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has lived and worked in three different countries and hopes to explore more of the world post-pandemic.

About the Editor

Tracy Stewart

Tracy Stewart is a personal finance writer specializing in credit card loyalty programs, travel benefits, and consumer protections. He previously covered travel rewards credit cards, budget travel, and aviation news at SmarterTravel Media. His money-saving tips have appeared in the Washington Post, the Wall Street Journal, Consumer Reports, MarketWatch, Vice, People, the Zoe Report and elsewhere.

About the Reviewer

Jason Steele

Jason Steele is a professional journalist and credit card expert who has been contributing to online publications since 2008. He was one of the original contributors to The Points Guy, and his work has been appearing there since 2011. He has also contributed to over 100 of the leading personal finance and travel outlets. He’s frequently interviewed and quoted by mainstream outlets on the subjects of credit cards and travel. Jason is passionate about travel rewards credit cards, which he uses to earn rewards that he can redeem for him and his family to travel around the world. Jason is also the founder and producer of CardCon, a conference for credit and credit card journalists that’s held annually.