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Home Credit Cards Best Secured Credit Cards

Secured Credit Cards | Best Options for 2022

an image of a hand grabbing a black secured credit card with a padlock symbol on it

At a glance

If you have a bad credit score, secured credit cards offer access to lines of credit when you pay a small deposit. These cards are ideal for anyone struggling to be approved for traditional credit cards. Check out what our experts have to say.

Written by Zachary Vickers

Reviewed by Mark Slack

Jan 17, 2022

Fresh advice you can trust

We promise to always deliver the best financial advice that we can. That's our first priority, and we take it seriously. Our writers and editors follow strict editorial standards and operate independently from our advertisers and affiliates. Learn more about how we make money.

Secured Credit Cards

Credit Card Best For Credit Score Annual Fee Welcome Bonus Apply Now
Discover It secured credit card Discover it® Secured Credit Card Secured Overall 300–850 $0 Cashback Match Apply
OpenSky Secured Visa credit card OpenSky® Secured Visa® Credit Card No Credit Check 300–850 $35 N/A Apply
Self Visa credit card Self Visa® + Credit Builder Account Beginners 300–850 $25 N/A Apply
Bank Americard Secured credit card BankAmericard® Secured Credit Card No Annual Fee 300–850 $0 N/A Apply
First Progress Platinum Select Mastercard secured credit card First Progress Platinum Select MasterCard® Secured Credit Card Bad Credit 350–850 $39 N/A Apply
Citi Secured Mastercard credit card Citi® Secured Mastercard® Rebuilding Credit 300–850 $0 N/A Apply

Table of Contents

  1. Best secured credit cards
  2. What is a secured credit card?
  3. How does a secured credit card work?
  4. Will a secured credit card raise my credit score?
  5. How do I apply for a secured credit card?
  6. How do I use a secured credit card?
  7. FAQs about secured credit cards
  8. FinanceJar credit card rating methodology

Best secured credit cards

Our experts have gathered the best secured credit card options around. These cards frequently report to all three credit bureaus, allowing you to build your credit, and because their issuers require a refundable security deposit, they’re available to almost everyone.

Best Overall

Discover It secured credit card Apply Now

on Discover's secure site
or call (800) 347-2683

Discover it® Secured Credit Card

4.8

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$0
Regular APR
24.49% (variable)
Rewards Rate
1% - 2%
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

The Discover it® Secured Credit Card is our overall pick for its versatility. Few secured cards offer cash-back rewards, but this card offers plenty: cash back on purchases at restaurants, gas stations, and other businesses, as well as Cashback Match for all purchases made in your first year. Seven months of on-time payments make you eligible for an upgrade to an unsecured card, making this card one of the best secured cards available.

Pros & Cons

Pros

  • No annual fee
  • Cash back rewards

Cons

  • High interest rate

Card Details

  • Annual Fee: $0
  • Intro Offer: 2% cash back on gas and restaurants up to $1,000 combined each quarter, and 1% unlimited cash back on all other qualified purchases.
  • Regular APR: 24.49% (variable)
  • APR for Balance Transfers: 10.99% intro APR for 6 months from date of first transfer, for transfers that post to your account by April 10, 2022. After the intro APR expires, your APR will be 22.99% This APR will vary with the market based on the Prime Rate.
  • APR for Cash Advances: 24.99% Variable
  • Deposit: $200

Best for No Credit Check

OpenSky Secured Visa credit card Apply Now

on OpenSky's secure site
or call (800) 859-6412

OpenSky® Secured Visa® Credit Card

4.5

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$35
Regular APR
17.64% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

The OpenSky Secured Credit Visa Card doesn’t require a credit check, so you won’t need to worry about your credit history. Pair that with the fact that OpenSky reports payments to all three major credit bureaus, and this card makes for a great choice for anyone with damaged credit or no credit history at all.

Pros & Cons

Pros

  • No credit check required
  • Establish and build your credit quickly

Cons

  • No rewards or perks

Card Details

  • Annual Fee: $35
  • Intro Offer: N/A
  • Regular APR: 17.39% Variable
  • APR for Balance Transfers: 17.39% Variable
  • APR for Cash Advances: N/A
  • Deposit: $200 - $3000

Best for Beginners

Self Visa credit card Apply Now

on Self's secure site
or call (877) 883-0999

Self Visa® + Credit Builder Account

3.8

Authority

Rates & Fees

Minimum Deposit
$100
Annual Fee
$25
Regular APR
23.99% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

Unusual among secured cards, the Self Visa® requires you to have a Self Credit Builder Account (a credit builder loan), which provides your deposit. Opening both accounts can give your credit score a boost by increasing your total number of open accounts and building up your credit history—great for people who are new to the credit world.

Pros & Cons

Pros

  • No credit check required
  • Builds credit faster than a secured card on its own

Cons

  • Requires Self Credit Builder Account
  • Low initial credit limit

Card Details

  • Annual Fee: $25
  • Intro Offer: N/A
  • Regular APR: 23.99% Variable
  • APR for Balance Transfers: N/A
  • APR for Cash Advances: N/A
  • Deposit: $100

Best for No Annual Fee

Bank Americard Secured credit card Apply Now

on Bank of America's secure site
or call (800) 732-9194

BankAmericard® Secured Credit Card

4.1

Authority

Rates & Fees

Minimum Deposit
$300
Annual Fee
$0
Regular APR
22.99% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

You don’t need a Bank of America account to apply for the BankAmericard® Secured Credit Card, but you do get many of the same benefits. Fraud protection and easy account management through Bank of America’s mobile app make this card stand out from others with no annual fee.

Pros & Cons

Pros

  • No annual fee
  • High maximum deposit
  • Fraud protection from Bank of America

Cons

  • No perks or rewards

Card Details

  • Annual Fee: $0
  • Intro Offer: N/A
  • Regular APR: 22.99% Variable
  • APR for Balance Transfers: 22.99% Variable
  • APR for Cash Advances: 25.99% (Direct Deposit/Check Cash Advances), 28.99% (Bank Cash Advances), Variable
  • Deposit: $300 - $4,900

Best for Bad Credit

First Progress Platinum Select Mastercard secured credit card Apply Now

on First Progress' secure site
or call (866) 706-5543

First Progress Platinum Select MasterCard® Secured Credit Card

3.9

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$39
Regular APR
13.99% (variable)
Rewards Rate
N/A
Recommended Credit Score
350–850
Poor Fair Good Excellent
300 850

Why It's Great

Your credit history won’t affect your application for the First Progress Platinum Select MasterCard® Secured Credit Card, making it a good choice for anyone with bad credit. This card also features a relatively low interest rate among secured cards, but it’s best not to take advantage of that too often since any interest you pay is still money that you're spending unnecessarily.

Pros & Cons

Pros

  • Low interest rate
  • Rebuild your credit score

Cons

  • No rewards or other benefits
  • No balance transfers

Card Details

  • Annual Fee: $39
  • Intro Offer: N/A
  • Regular APR: 13.99% Variable
  • APR for Balance Transfers: N/A
  • APR for Cash Advances: 19.99% Variable
  • Deposit: $200 - $2000

Best for Rebuilding Credit

Citi Secured Mastercard credit card Apply Now

on Citi's secure site
or call (800) 950-5114

Citi® Secured Mastercard®

3.8

Authority

Rates & Fees

Minimum Deposit
$200
Annual Fee
$0
Regular APR
23.99% (variable)
Rewards Rate
N/A
Recommended Credit Score
300–850
Poor Fair Good Excellent
300 850

Why It's Great

With no annual fee and credit limits as high as $2,500, the Citi® Secured Mastercard® is a flexible option for people looking to rebuild their credit. Citi reports to all three credit bureaus and offers fraud alerts and identity theft protection, so you can rest assured that your credit is in good hands.

Pros & Cons

Pros

  • No annual fee
  • Reports to all three credit bureaus
  • Identity theft protection

Cons

  • High interest rate

Card Details

  • Annual Fee: $0
  • Intro Offer: N/A
  • Regular APR: 22.49% Variable
  • APR for Balance Transfers: 22.49% Variable
  • APR for Cash Advances: 25.24% Variable
  • Deposit: $200 - $2,500

What is a secured credit card?

A secured credit card is a type of credit card that requires you to put down a security deposit when you open your account. This deposit acts as collateral that the credit card company will keep if you fail to make your payments, and usually also sets your credit limit.

Secured credit cards have several pros and cons.

Pros and cons of secured credit cards

Pros

  • Higher chances of approval for people with low credit or no credit history
  • Typically reports account history to all three major credit bureaus
  • Deposit is refundable

Cons

  • Mandatory minimum deposits
  • Higher interest rates and fees
  • Few rewards or other perks

Secured vs. unsecured credit cards

In general, secured credit cards operate in the same ways as unsecured credit cards.

 SecuredUnsecured
Minimum credit requiredAvailable for nearly all credit scoresFair to excellent credit required (601–850)
Security depositAverage minimum deposit of $200No deposit required
Rewards programsRewards are frequently not offeredA wide range of rewards are often available
Interest ratesHigher than average APRAverage to below-average APR (based on creditworthiness)

Secured credit cards require a minimum deposit upon opening your account, and generally have higher interest rates than unsecured cards while lacking any special rewards and benefits.

In contrast, unsecured cards don’t require a security deposit. They also adjust their interest rates based on applicants’ credit scores and histories and offer an assortment of rewards suited to different spending habits and lifestyles.

Although secured cards don’t have as many rewards, they’re usually better credit cards if you have bad credit, as the qualification thresholds tend to be lower than those of unsecured cards.

How does a secured credit card work?

A secured credit card works exactly the same way as a normal (unsecured) credit card, the only difference being that you need to pay a deposit to get one, and you can lose that deposit if you fail to make repayments.

With a secured credit card:

  • You can purchase any goods and services
  • You’ll be asked to make a minimum payment on your charges every month
  • If you don’t pay your credit card bill in full, you’ll pay an interest rate on the amount you didn’t pay off
  • Your payment history will be reported to the credit bureaus, either helping or hurting your credit score depending on if you make on-time or late payments

Will a secured credit card raise my credit score?

Yes, a secured card can improve your credit score, as long as you use it responsibly.

Your new card has the potential to:

  • Build your payment history: In the future, whether you’re applying for a credit card, mortgage, or even an apartment, anyone who checks your credit will see your payment history on your secured credit card. Using it responsibly (which means making the required on-time payments each month) will reflect positively on your credit report, raising your score over time.
  • Lower your credit utilization: Your credit utilization rate also impacts your score. Your utilization rate indicates how much available credit you have across your revolving credit accounts. For example, if you have one secured card with a credit limit of $200 which you spend $60 on, that translates to a 30% utilization rate. If you avoid overusing your card (keeping your utilization rate in the single digits, if possible), it will benefit your score.

Note that to get the maximum benefits, you should apply for a card that reports to all three major credit bureaus (Equifax, TransUnion, and Experian), since you don’t know which bureau a particular lender will use.

How do I apply for a secured credit card?

Once you’ve compared the interest rates and benefits of a few secured cards and selected the one you want, applying for a secured credit card involves the following steps:

  1. Submit your application
  2. Pay your security deposit
  3. Look for alternatives if you’re denied

1. Submit your application

You can apply through your card issuer’s website or by mail. Be sure to fill in all of the information required to give yourself the best chance of acceptance. The card issuer’s underwriters may evaluate your credit history to determine if you’re too risky to give credit to. Fortunately, because you’re applying for a secured credit card, it’s more likely that you’ll be approved even if you have a nonexistent, limited, or bad credit history. In some cases, they may not even check your credit at all.

If an issuer does check your credit, the hard inquiry they conduct will have a slight and temporary negative effect on your credit score. To avoid dropping your score too far, it’s best to apply for cards one at a time. If you get rejected, find out why and target your next application more carefully.

2. Pay your security deposit

Before you can open your account, you’ll need to pay your security deposit. Depending on your card issuer, this may be immediately withdrawn from your checking account or you may be given time to gather the necessary funds.

Your deposit defines your credit limit—you won’t be able to spend more on your card than you paid to begin with.

Failing to pay your security deposit will lead to your application being rejected.

3. Look for alternatives if you’re denied

If your application for a secured credit card is denied, find out why (this should be easy—card issuers are legally obligated to explain their reasons for denying credit card applications). Many issuers will also tell you what credit score they saw and which credit bureau they got it from.

You can request a free copy of your credit report whenever your credit card application is denied. It’s best to take advantage of this and to promptly dispute items on your credit report if there’s an error.

If your secured card application is denied, you can also try:

  • Speaking with your local bank or credit union: These are institutions you’ve already built relationships with. An in-person visit to a bank or credit union will allow you to explain your financial situation in detail and improve your chances of being approved for a secured card provided by them.
  • Applying for secured cards that don’t require a credit check for approval: Because these don’t take your credit score or history into consideration, it’s more likely you’ll be approved.

How do I use a secured credit card?

Using a secured credit card is no different from any other card. However, it should be considered a stepping stone to getting cards with higher limits, better benefits, lower interest rates, and no security deposits.

To graduate from using a secured credit card to an unsecured one, you should:

1. Maintain good credit habits

Once your account is open and you start using your card, you’ll be billed for your charges on a monthly basis. Because secured credit cards typically have higher interest rates than unsecured cards, it’s even more important to keep track of your spending and pay off your balance in a timely manner.

Regularly hitting your credit limit—“maxing out” your card—can make it harder to pay your balance on time, leading to interest charges that quickly add up. Maxing out your card will also push your credit utilization well past 30%, damaging your credit score.

Overusing your credit card also makes it easier to overcommit financially and miss payments, which is a serious problem. Having a negative payment history on your credit report can damage your credit score significantly.

2. Upgrade your credit card

Once you’ve built up a positive credit history with your secured credit card, you have up to three options for upgrading to an unsecured credit card:

  • Automatic upgrade: Many secured cards have a built-in upgrade that your card issuer will offer when they’re comfortable with your payment history.
  • Request an upgrade: If your card issuer doesn’t automatically upgrade your account, you may need to request an upgrade yourself.
  • Apply for a credit card from a different issuer: If your issuer doesn’t offer unsecured credit cards, you can always try to apply for a different company’s credit card.

FAQs about secured credit cards

We’ve answered some of the most frequently asked questions about secured credit cards below.

Is a secured credit card good for beginners?

Yes, a secured credit card is a good choice for beginners. Secured cards don’t impose many limits on applicants, and are marketed towards people who are trying to establish a credit history or fix a damaged credit score, or anyone else who wants quick, no-fuss access to a line of credit.

As credit cards go, secured cards tend to have the most straightforward cardholder agreements, making them easier to understand for people unfamiliar with credit cards. Since secured cards generally don’t offer rewards programs or other kinds of benefits, you don’t have to worry about wasting rewards points or missing out on cash back.

What is the minimum deposit for a secured credit card?

Exactly how much money you’ll need to put down for your deposit depends on your card issuer. Typically, secured credit cards require a minimum deposit of $200.

Where can I get a secured credit card?

While we’ve tried to compile the best secured cards for different kinds of spenders above, the market for secured credit cards is huge.

For example, many banks and credit unions offer their own secured cards. If you have a savings or checking account, take a look at what cards your financial institution offers to existing members.

Can you request a credit limit increase on a secured credit card?

Typically, the only way to request a credit limit increase on a secured card is by increasing the amount of your deposit.

FinanceJar credit card rating methodology

How we rate our secured credit cards

The top factors that FinanceJar's card experts analyzed when rating the secured credit cards on this list are:

  • Deposit Amount
  • Credit Score Required
  • Interest Rates and Fees
  • Customer Satisfaction

These factors, among many others, are part of our 5-star credit card rating methodology for all card categories. Our star ratings are unbiased and independent of our affiliates and advertisers.

Zachary Vickers

Assignment Editor

View Author

Zachary Vickers worked previously as an editor for a team of journalists and reporters. He's covered a range of topics including personal finance, estate planning, small business operations, career advice, and more.

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