A secured credit card is one of the best tools to build or rebuild credit. Whether you’re new to credit or repairing your score, a secured card provides an opportunity to prove your creditworthiness while limiting financial risk.
In this guide, we’ll cover:
✅ What is a secured credit card?
✅ How secured credit cards work
✅ Best secured credit cards
✅ How to upgrade to an unsecured credit card
✅ Common mistakes to avoid with secured credit cards
Let’s find the best secured credit card for you!
What Is a Secured Credit Card?
A secured credit card requires a refundable security deposit, which acts as collateral. This deposit typically becomes your credit limit, and responsible usage helps you build credit over time.
✔ Designed for people with no credit or poor credit
✔ Works like a regular credit card – You can make purchases and pay your balance monthly
✔ Reports to major credit bureaus (Experian, Equifax, and TransUnion)
📌 Key Takeaway: Secured credit cards help you establish or rebuild credit with less risk than traditional credit cards.
🔗 Learn More About How to Build Credit
Best Secured Credit Cards
📌 These secured credit cards offer the best benefits for building credit.
🔹 Best Overall Secured Credit Cards
| Credit Card | Minimum Deposit | Annual Fee | Credit Bureau Reporting | Apply Link |
|---|---|---|---|---|
| Discover it® Secured Credit Card | $200 | $0 | Yes, all 3 bureaus | Apply Here |
| Capital One Platinum Secured Credit Card | $49 – $200 | $0 | Yes, all 3 bureaus | Apply Here |
| Citi® Secured Mastercard® | $200 | $0 | Yes, all 3 bureaus | Apply Here |
📌 Key Takeaway: No annual fees and credit bureau reporting make these cards the best for building credit.
🔗 Compare More Secured Credit Cards
🔹 Best Secured Cards That Upgrade to Unsecured
| Credit Card | Minimum Deposit | Upgrades to Unsecured? | Apply Link |
|---|---|---|---|
| Discover it® Secured | $200 | Yes, automatic review after 7 months | Apply Here |
| Capital One Platinum Secured | $49 – $200 | Yes, with responsible use | Apply Here |
📌 Key Takeaway: These cards automatically review your account and may return your deposit as your credit improves.
🔹 Best Secured Cards for Low Deposit Requirements
| Credit Card | Minimum Deposit | Annual Fee | Apply Link |
|---|---|---|---|
| Capital One Platinum Secured | $49 – $200 | $0 | Apply Here |
| First Progress Platinum Prestige | $200 | $49 | Apply Here |
📌 Key Takeaway: Lower deposit requirements help make secured cards more accessible.
🔹 Best Secured Cards for Rewards & Cashback
| Credit Card | Rewards Program | Annual Fee | Apply Link |
|---|---|---|---|
| Discover it® Secured | 2% cashback at gas stations & restaurants | $0 | Apply Here |
| Bank of America® Customized Cash Rewards Secured | 3% cashback on chosen category | $0 | Apply Here |
📌 Key Takeaway: Earn cashback while building your credit with these secured cards.
How to Upgrade from a Secured to an Unsecured Credit Card
📌 Follow these steps to move to an unsecured credit card:
✔ Make on-time payments – Your payment history is the most important factor for building credit.
✔ Keep your credit utilization low – Try to use less than 30% of your credit limit.
✔ Check for an automatic upgrade – Some issuers automatically review your account after 6-12 months.
✔ Request an upgrade – If you’ve managed your secured card responsibly, you can ask your bank to upgrade.
📌 Key Takeaway: Responsible credit use helps you qualify for an unsecured credit card faster.
🔗 Learn More About Credit Scores
Common Mistakes to Avoid with Secured Credit Cards
🚫 Missing payments – Hurts your credit score more than any other factor
🚫 Maxing out your credit limit – Keep your utilization below 30%
🚫 Applying for multiple secured cards at once – Hard inquiries can lower your score
🚫 Closing your secured card too soon – Keep it open until you qualify for an unsecured card
🚫 Ignoring credit reports – Check your report for errors that could impact your score
📌 Key Takeaway: Treat your secured card like a regular credit card to build good credit habits.
🔗 How to Get Your Free Credit Report
Frequently Asked Questions (FAQs)
1️⃣ How long does it take to build credit with a secured card?
✔ 3-6 months – Small improvements
✔ 6-12 months – Significant changes if used responsibly
✔ 1+ year – Major improvement for strong financial habits
2️⃣ Do secured credit cards require a hard credit check?
✔ Most secured cards require a credit check, but approval is easier than unsecured cards.
3️⃣ Can I get my security deposit back?
✔ Yes! If you pay on time and maintain good credit, your issuer may upgrade you to an unsecured card and refund your deposit.
4️⃣ Are secured credit cards worth it?
✔ Yes! Secured cards are the best way to start building credit if you have no credit or bad credit.
Final Thoughts – Start Building Credit Today
📌 A secured credit card is the best tool for improving your credit. Choose one that fits your financial needs and start building a strong credit history.
🚀 “Ready to build your credit? Compare the best secured credit cards today!”
🔗 Find the Best Secured Credit Cards