Best Overall: Capital One Platinum Secured Show
Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Poor - Excellent
Why We Chose This Card The Capital One Platinum Secured is Investopedia's choice for Best Secured Card due to its low fees and security deposit flexibility, allowing customers to send in their account deposits in installments rather than having to make it all at once. Capital One also offers automatic credit line increase reviews after as little as six months of responsible card use. No annual fee makes this a good entry-level card for those needing to build their credit. Pros and Cons Pros
Cons
Read the full Capital One Platinum Secured credit card review. Best for Rewards: Discover it SecuredCurrent Offer Discover will match all the cash back you've earned at the end of your first year, automatically. Recommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Poor - Excellent
Why We Chose This Card The Discover it Secured is our choice for best for rewards because it offers valuable cash rewards and no annual fee. It is a solid choice to build good credit and credit habits. Discover reviews all customer accounts after seven months to determine if you can transition to an unsecured card. Pros and Cons Pros
Cons
Read the full Discover it Secured credit card review Best for Credit Building: Self VisaRecommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Poor - Excellent
Why We Chose This Card The Self Visa is our top card for credit building because it offers an unusual feature to help build a positive credit history: the creation of both an installment loan and a credit card account. You're granted a CD-secured loan if you meet Self Visa’s eligibility requirements. Once you’ve made three on-time loan payments that unlock at least $100 of value in your CD, you can open a secured card using the repaid funds as the security deposit. Pros and Cons Pros
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Read the full Self Visa credit card review. Best for Cash Back: Bank of America Customized Cash Rewards SecuredRecommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Good - Excellent
Why We Chose This Card The Bank of America Customized Cash Rewards Secured card offers 3% cash back in a spending category of your choice, plus 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined spending each quarter), and 1% on all other purchases. And the card has no annual fee. Pros and Cons Pros
Cons
Read the full Bank of America Customized Cash Rewards Secured credit card review. Best for Military: nRewards SecuredRecommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Poor - Excellent
Why We Chose This Card The nRewards Secured Credit Card is designed for service members on fixed budgets. The card is meant for users with no or poor credit, has no annual fee, and carries a low minimum deposit of just $200. Pros and Cons Pros
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Best for Fair Credit: U.S. Bank Secured VisaRecommended Credit Score Our recommended ranges are based off of the FICO® Score 8 credit-scoring model. Credit score is one of the many factors lenders review in considering your application. 350 579 580 669 670 739 740 799 800 850 Fair - Excellent
Why We Chose This Card The U.S. Bank Secured Visa Card is specifically designed for applicants with fair credit. The card has no annual fee, but no rewards program, and it's a great option for applicants with poor credit history who want to improve their credit. Pros and Cons Pros
Read the full U.S. Bank Secured Visa credit card review. Final VerdictSecured credit cards open up opportunities to build and rebuild credit for many consumers. We prefer cards that don't require a large deposit and are accessible to the most people. The Platinum Secured credit card from Capital One best fits the bill with flexible security deposits and no annual fees. Capital One also reevaluates cardholder credit within six months to see if credit lines can be increased. Compare the Best Secured Credit CardsEditorial Picks for Best Secured Credit CardsCapital One Platinum SecuredBest Overall As a secured credit card, this Capital One card can offer a higher limit than the actual security deposit which can also be paid in installments. It’s a good card for traveling as there are no annual fees or any foreign transaction fees charged. Read the full Capital One Platinum Secured Review. Discover it SecuredBest Secured Card for Rewards As far as rewards go, cash is the most versatile option. The Discover it has no annual fee and offers cash back rewards. Additionally, users build real credit history when using this card, helping them move to unsecured cards sooner than later. Read the full Discover it Secured Card Review. Self Visa Credit CardBest Secured Card for Credit Building By using an installment loan and secured credit card account, the Self Visa helps users establish a positive credit history. It has lenient eligibility requirements using a CD secured loan to unlock credit limits. Read the full Self Visa Credit Card Review. Bank of America Customized Cash Rewards SecuredBest for Cash Back Highest rewards for a secured card with up to 3% cash back in eligible categories. With no annual fee, this card has all the bells and whistles of an unsecured credit card. nRewards Secured Credit CardBest for Military Designed for members of the military on fixed budgets. The nRewards Secured Credit Card has no annual fee and requires a low security deposit of only $200. U.S. Bank Secured Visa CardBest for Fair Credit This secured credit card was created for those with fair credit looking to build up their credit score. It competes with other secured cards with deposit requirements and has a no annual fee. Read the full U.S. Bank Secured Card Review. Final VerdictSecured credit cards fill a big need in the credit industry by helping consumers build credit without the risk of getting into insurmountable debt. They help those with no credit or poor credit utilize credit cards in various transactions, thus improving their credit score over time. Of all the secured credit cards available on the market, The Platinum Secured Credit Card from Capital One is our top pick thanks to flexible installment payments, low fees, and fast credit line increases. Frequently Asked QuestionsWhat Is a Secured Card and How Does it Work?Secured credit cards resemble regular credit cards with one key difference: They require a “security” deposit, the size of which determines your credit limit with the card, at least initially. The advantage to this card type, compared with using a debit card tied to a checking account or a prepaid debit card, is that account activity is reported to all three major credit bureaus (because a secured credit card is a true credit card with a real credit limit). That reporting allows you to begin building a credit history; assuming it is positive, in time, it should allow you to get a regular credit card and other credit products, such as loans. Provided you make on-time payments with a secured card, your security deposit remains untouched and is remitted back to you should you ever close the account. Some issuers even pay you interest on the deposited funds. In time, given a positive record of making payments, issuers may grant you a credit limit that exceeds the security deposit. Eventually, the issuer may also offer you the option to upgrade to a regular—that is, unsecured—credit card. In many cases, transitioning to a regular account allows the account to remain open. Its increasing age is an asset to your credit record, which generally rewards having older accounts. If that option isn’t available, though, one can simply close the secured account and apply for an unsecured card once you’ve attained a solid credit score. The free score-monitoring feature offered by most secured cards allows you to track your progress. Which Consumers Do Secured Cards Best Suit?The ideal recipient of a secured credit card is someone who has never owned a credit card or any other type of credit account, such as a loan. Such prospective customers have what’s known as a "thin file” with minimal data at credit bureaus about their payment activity, and so will especially benefit from the credit history a secured credit card will help to build. Those with poor or bad credit because of irresponsible credit behavior in the past can potentially gain the same advantage from a secured card. Moreso than credit newcomers, these customers’ actions—such as habitual late payments, credit defaults, and bankruptcy declarations—can make lenders apprehensive. And that can leave those consumers with few if any options to rebuild their credit other than a secured card. Even if card issuers do not pull a full credit report when reviewing your application, they may want at least to verify your income and determine if you have any other accounts, like checking or savings accounts with banks and other financial institutions. That information allows issuers to gain a fuller picture of your finances, including your ability to make a security deposit. What Are the Pros and Cons of Secured Cards?Secured cards provide widely accepted charge cards to those with little credit, no credit, or bad credit. They offer an excellent chance of approval, and they report to credit bureaus to build personal credit. On the other hand, security deposits are required, and having secured cards may be difficult for those with limited funds. Credit limits also do not exceed the security deposits—at least initially—and these cards have higher APRs on balances than most non-secured cards. Can Secured Cards Really Build Credit?In contrast to alternatives like prepaid debit cards, all card transactions and payment activities with a secured card are reported to the major credit bureaus—Equifax, Experian, and TransUnion. Good financial behavior, such as staying within your credit limit and making on-time payments, has a positive effect on your credit history, and that in turn will help you build a strong credit score. What Are Features to Consider in a Secured Card?These are some of the capabilities and attributes to seek in one of these cards: 1. Provision to Pay Security Deposits Over Time Certain card issuers let you make deposit payments in installments over a period of time. This can facilitate reaching the required amount, especially for those who lack a bank account, a savings program, or both. 2. High Limits on Credit Lines While most issuers limit the available credit limit to the size of the security deposit you’ve made, a select few give consumers a little more slack by allowing credit lines to graduate to a multiple of the deposit, like 125% or 150% of its amount. There are also variations in the maximum security deposit you can make. Some issuers cap this at $2,500 but a few allow deposits of up to $10,000. 3. Low or No Fees Some issuers impose high monthly usage fees on those who own secured cards, as well as stiff annual fees to get the account in the first place. Avoid the cards from such issuers, if possible, since there are plenty of options that charge no or low fees. And, needless to say, review the fee disclosures in the terms and conditions for any card to understand its costs before you apply. 4. Free Credit Scores Certain issuers provide this valuable service that can allow you to check your score at any time online while some print it on monthly billing statements. This can be very helpful since those seeking this type of account are in great need of seeing and tracking their score growth over time and understanding the impact of their credit behavior. 5. Cash-Back Rewards While it isn’t the norm, a few secured credit cards do provide cashback rewards on their spending. The rate is typically modest, at 1% or so, but these perks are worth seeking out, provided the card meets the other items on your wish list. Rewards are credited back to your billing statement or sent to you as a check at the end of the year. Can You Get Turned Down for a Secured Credit Card?While it's rare to get turned down for a secured credit card, it's possible if an applicant has a bankruptcy or other derogatory marks on their credit report. But, qualification criteria are generally much lower for secured credit cards versus unsecured, making them an ideal tool for those trying to build credit history or rebuild their credit. Secured Cards vs. Unsecured CardsSecured
Unsecured
Most credit cards aren't secured. When cardholders make purchases, they're backed only by the cardholder's personal credit—if the cardholder later defaults, the card issuer doesn't have a lien against any particular property that they can seize to recoup the balance. Secured cards require cardholders to provide a security deposit upfront, which is used to secure the cardholder's purchases, lowering the risk to the card issuer if the cardholder later defaults. While this makes secured credit cards more restrictive in terms of spending, it also makes them easier to qualify for. How to Use a Secured Card
MethodologyTo find the best secured credit cards, we gather dozens of data points on more than 300 cards. Each data point we gather is then assigned a star rating, based on its benefits or drawbacks relative to similar features from other cards. Features were then weighted based on their importance for different card categories (e.g., rewards, travel, cash back). This list represents the highest-rated cards that we've scored for relevant features, such as APR and minimum deposit. As part of our credit card review methodology, we monitor data from card issuers continuously and update our ratings and rankings as card data changes. Meet Our Credit Cards ExpertBen Woolsey is Investopedia's Senior Editor for Credit Cards. He has more than 30 years of experience in the financial services industry, including marketing for banking and financial institutions such as Associates First Capital and Bank One. Prior to Investopedia, he managed credit card content for CreditCards.com and Bankrate.com. Is a secured credit card good for rebuilding credit?Provided your lenders report your payment history to the three nationwide consumer reporting agencies, a secured credit card can be a powerful tool for building and improving credit. Secured credit cards may be especially helpful for high-risk borrowers or those with little to no credit history.
How fast will a secured card rebuild credit?How soon will a secured card raise my credit score? Typically, it can take one to two months after you begin using your secured card for it to start bumping up your score. According to Experian, if you're brand-new to building credit, it could take up to six months for a credit score to even show up on your report.
What's the fastest way to rebuild your credit?You can build credit by using your credit card and paying on time, every time. Pay off your balances in full each month to avoid paying finance charges. Paying off your balance each month can also build better credit than carrying a balance, because it helps keep you from getting too close to your credit limit.
Which credit cards boost your credit score the most?Best credit cards for building credit. Winner: Petal® 2 “Cash Back, No Fees” Visa® Credit Card.. Runner-up: Discover it® Secured Credit Card.. Best for cash back: U.S. Bank Cash+® Visa® Secured Card.. Best low deposit: Capital One Platinum Secured Credit Card.. Best for international applicants: Deserve Digital First Card™. |
What is a good secured credit card for rebuilding credit
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