Top 10 Secured Credit Cards for Building Credit
Secured credit cards are a type of credit card designed to help individuals build or rebuild their credit history. They require a cash deposit as collateral, which typically acts as the credit limit. This makes them less risky for lenders and accessible to those with poor or no credit history.
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Using a secured credit card responsibly can significantly improve one's credit score over time. The key is to make regular, on-time payments and keep credit utilization low. Most secured credit cards report to the major credit bureaus, ensuring that your good behavior is noted. It's also crucial to review the card's terms and fees before applying, as they can vary widely. Some secured cards may offer the opportunity to upgrade to an unsecured card after demonstrating responsible usage over a certain period. By maintaining good habits, individuals can gradually build a positive credit profile, making it easier to qualify for better financial products in the future.
Discover it SecuredView AllDiscover it Secured - Secured credit card with rewards and no annual fee.
Capital One Platinum SecuredView AllCapital One Platinum Secured - Credit card for building credit with refundable security deposit.
Citi Secured MastercardView AllCiti Secured Mastercard - Credit-building card with security deposit, no annual fee.
OpenSky Secured VisaView AllOpenSky Secured Visa - No credit check, secured card for building credit.
Bank of America Secured Credit CardView AllBank of America Secured Credit Card - Credit-building card requiring a security deposit.
U.S. Bank Secured Visa CardView AllU.S. Bank Secured Visa Card - A secured credit card for building or rebuilding credit.
Wells Fargo Secured Credit CardView AllWells Fargo Secured Credit Card - Wells Fargo Secured Credit Card: credit-building with refundable deposit.
Navy Federal nRewards Secured Credit CardView AllNavy Federal nRewards Secured Credit Card - Navy Federal nRewards: secured card, builds credit, earns rewards.
First Progress Platinum Elite Mastercard Secured Credit CardView AllFirst Progress Platinum Elite Mastercard Secured Credit Card - Secured card improving credit with refundable deposit.
Green Dot Primor Visa Gold Secured Credit CardView AllGreen Dot Primor Visa Gold Secured Credit Card - Secured card, low fees, reports to credit bureaus.
Top 10 Secured Credit Cards for Building Credit
1.
Discover it Secured
The Discover it Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit as collateral, which determines the credit limit. Cardholders earn 2% cash back at gas stations and restaurants (up to $1,000 in combined purchases each quarter) and 1% on all other purchases. Additional perks include no annual fee, free FICO credit score monitoring, and automatic reviews for transition to an unsecured card with responsible use.
Pros
No annual fee- Cashback rewards
- Free FICO score
- Easy transition to unsecured
- Fraud protection
Cons
Requires security deposit- High APR
- Limited credit line
- No travel rewards
- Limited acceptance internationally
2.
Capital One Platinum Secured
The Capital One Platinum Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which determines the initial credit limit. With responsible use, cardholders can improve their credit score over time. The card offers access to a higher credit line with no additional deposit after demonstrating good payment habits. It has no annual fee, making it an accessible option for those seeking to establish better credit.
Pros
- Low minimum deposit
- reports to all three credit bureaus
- potential credit limit increase
- no annual fee
- accessible online services.
Cons
- High APR
- no rewards program
- limited initial credit limit
- higher security deposit for higher limits
- no introductory APR.
3.
Citi Secured Mastercard
The Citi Secured Mastercard is a credit-building tool designed for individuals with limited or no credit history. It requires a security deposit, which acts as the credit limit, helping users manage their spending. This card reports to all three major credit bureaus, aiding in the establishment and improvement of credit scores. With no annual fee, it offers standard Mastercard benefits, including fraud protection and access to the Citi Identity Theft Solutions, making it a practical option for credit newcomers.
Pros
- Builds credit history
- no annual fee
- flexible payment options
- free access to FICO score
- worldwide acceptance.
Cons
- High APR
- requires security deposit
- limited rewards
- foreign transaction fees
- no introductory APR offer.
4.
OpenSky Secured Visa
The OpenSky Secured Visa is a credit card designed for individuals looking to build or rebuild their credit score. It requires a refundable security deposit, which determines the credit limit, making it accessible for those with limited or poor credit history. The card reports to all three major credit bureaus, aiding in credit score improvement. With no credit check required for approval and reasonable fees, it offers a straightforward path to financial health.
Pros
- No credit check
- Low annual fee
- Reports to all 3 credit bureaus
- Easy application
- Build credit history.
Cons
- No rewards program
- Requires security deposit
- High APR
- Limited credit limit
- Foreign transaction fee.
5.
Bank of America Secured Credit Card
The Bank of America Secured Credit Card is designed for individuals looking to build or rebuild their credit history. It requires a refundable security deposit that acts as your credit line. This card offers benefits such as no annual fee, access to your FICO® score, and potential for an upgrade to an unsecured card with responsible use. It also features fraud protection and online banking tools to manage your account effectively.
Pros
- Builds credit
- no annual fee
- refundable deposit
- reports to major credit bureaus
- access to online banking.
Cons
- High APR
- security deposit required
- limited rewards
- no intro APR offers
- foreign transaction fees.
6.
U.S. Bank Secured Visa Card
The U.S. Bank Secured Visa Card is designed to help individuals build or rebuild their credit history. It requires a refundable security deposit, which determines the credit limit. Cardholders can benefit from fraud protection and free access to their credit score. Responsible use and timely payments can lead to an improved credit score and potential eligibility for an unsecured card. This card has no annual fee, making it a cost-effective option for credit building.
Pros
- Builds credit
- low annual fee
- refundable deposit
- reports to major credit bureaus
- fraud protection
Cons
- High APR
- no rewards
- requires security deposit
- limited benefits
- foreign transaction fees
7.
Wells Fargo Secured Credit Card
The Wells Fargo Secured Credit Card is designed to help individuals build or rebuild their credit. It requires a refundable security deposit, which typically sets the credit limit. Cardholders can enjoy features like zero liability protection, free access to their FICO credit score, and the ability to upgrade to an unsecured card with responsible use over time. It's an effective tool for establishing a positive credit history and managing finances responsibly.
Pros
- Build credit history
- Low annual fee
- Reports to major credit bureaus
- Free FICO score
- Fraud protection.
Cons
- Requires security deposit
- High APR
- Limited rewards
- No intro APR offers
- Limited credit limit.
8.
Navy Federal nRewards Secured Credit Card
The Navy Federal nRewards Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which determines the credit limit. Cardholders earn one point per dollar spent, redeemable for cash, gift cards, and merchandise. With no annual fee and competitive rates, it offers a pathway to establish creditworthiness. Additionally, Navy Federal may periodically review accounts for potential upgrades to unsecured credit cards based on credit performance.
Pros
- Builds credit
- No annual fee
- Earns rewards points
- Low APR
- Flexible credit limits.
Cons
- Requires security deposit
- Limited rewards redemption options
- High penalty APR
- No welcome bonus
- No balance transfers.
9.
First Progress Platinum Elite Mastercard Secured Credit Card
The First Progress Platinum Elite Mastercard Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit, which serves as your credit limit. The card reports to all three major credit bureaus, helping users establish a positive credit history. It has no minimum credit score requirements and offers a low annual fee. Ideal for those with poor or limited credit, it provides a stepping stone towards better financial health.
Pros
- Builds credit history
- relatively low annual fee
- reports to all 3 bureaus
- no minimum credit score
- refundable deposit.
Cons
- No rewards program
- high APR
- foreign transaction fee
- limited credit limit
- initial deposit required.
10.
Green Dot Primor Visa Gold Secured Credit Card
The Green Dot Primor Visa Gold Secured Credit Card is designed for individuals looking to build or rebuild their credit. It requires a refundable security deposit starting at $200, which determines your credit limit. With a competitive 9.99% fixed APR on purchases, no monthly fees, and reporting to all three major credit bureaus, it offers a straightforward way to improve credit scores over time. However, it does have an annual fee of $49.
Pros
- Low APR for secured card
- Reports to major credit bureaus
- No minimum credit score required
- Easy application process
- Helps build credit.
Cons
- Annual fee
- No rewards program
- High late payment fee
- No balance transfers
- Requires refundable security deposit.