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Credit Cards

Best Secured Credit Cards

Updated Mar 12, 2024   |   14-min read

As much as some people would like to think they can get along without a credit card, the reality is it’s challenging. However, for people trying to establish or rebuild their credit, the frustration is that they can’t always get approved for high rewards cards until they demonstrate their creditworthiness.

That’s where secured credit cards come into play. Secured cards are real credit cards. They have the same attributes and acceptance rates as a standard credit card, but a good credit history is not required to obtain one. And because secured cards can help build your credit history, they’re an excellent stepping stone to getting an unsecured rewards credit card in the future.

To help you start improving your credit, our team analyzed several secured cards to determine the best for different needs. Here are our top picks.

Best Secured Credit Cards of 2020

Capital One Platinum Secured: Best overall and for personalizing your payment method

  • LendEDU Rating: 4.8/5
  • Annual fee: $0
  • Security deposit: $49, $99, $200
  • Editor’s thoughts: This card reports to all three credit bureaus and does not charge an annual fee, making it a great option for those interested in building their credit

The Capital One Platinum Secured is our top-rated secured credit card. The card has over 13,000 reviews on Capital One’s website, receiving a 4.4 out of 5 rating, with 91% of reviewers recommending the card as of October 16, 2020.

Some important details include:

  • There is no annual fee
  • See if you’re pre-approved with no impact on your credit score
  • A refundable security deposit of $49, $99, or $200
  • Account usage is reported to all three credit bureaus
  • CreditWise sends you alerts when TransUnion or Experian credit report changes occur
  • No foreign transaction fees

New cardmembers will have an initial credit line of $200 once a refundable security deposit of $49, $99, or $200 is made. Having a higher credit line than your security deposit is rare, considering most issuers require the two amounts to match when opening an account.

Additionally, if you deposit more money before your account opens, you can earn a higher credit line. Capital One will automatically consider you for a higher credit line six months after the account opening.

An added feature that stands out amongst the competition is the ability to personalize your payment. Cardholders can pick their monthly due date and payment method. These methods include a check, online, or at a local bank.

To learn more about this card and its benefits, click here.


OpenSky Secured Visa Credit Card: Best for no credit check

  • LendEDU Rating: 4.7/5
  • Annual fee: $35
  • Security deposit: $200 – $3,000
  • Editor’s thoughts: This card reports to all three credit bureaus and offers one of the higher maximum security deposit amounts amongst secured credit cards

The OpenSky Secured Visa Credit Card is a highly rated card that does not require a credit check when you apply. The company’s website claims that 99% of cardholders who started without a credit score built their score in as little as six months.

Some important details include:

  • A $35 annual fee
  • There is no impact on your credit score when you apply
  • A refundable security deposit between $200 and $3,000
  • Account usage is reported to all three credit bureaus

The security deposit will be held in an FDIC-insured account and returned to you after your account is closed. You can set up automated email alerts to ensure you make your minimum payment each month.

To learn more about this card and its benefits, click here.


First Progress Platinum Prestige Mastercard Secured: Best for offering a low APR

  • LendEDU Rating: 4.5/5
  • Annual fee: $49
  • Security deposit: $200 – $2,000
  • Editor’s thoughts: This card reports to all three credit bureaus and does not require a minimum credit score, making it a good option for those looking to build credit

The First Progress Platinum Prestige Mastercard Secured Credit Card offers a low variable APR on purchases and cash advances. The card is accepted nationwide and does not require a credit history or minimum credit score to apply.

Some important details include:

  • A $49 annual fee
  • There is no credit history or minimum credit score required
  • A refundable security deposit between $200 and $2,000
  • Account usage is reported to all three credit bureaus

If you are concerned with your ability to meet your monthly payment, this card can offer some relief because it has a low purchase APR, limiting the amount of interest charged on any missed payments.

To learn more about this card and its benefits, click here.


Assent Platinum 0% Intro Rate Mastercard Secured Credit Card: Best for a 0% intro APR

  • LendEDU Rating: 4.5/5
  • Annual fee: $49
  • Security deposit: $200 – $2,000
  • Editor’s thoughts: This card reports to all three credit bureaus and comes with an introductory APR on purchases that is a nice feature for those worried about making on-time payments

The Assent Platinum 0% Intro Rate Mastercard Secured Credit Card is a good card for those who are using a credit card for the first time. The reason for this is the 0% APR on purchases for the first six months. This 0% APR means that any missed monthly payments won’t be charged any interest during the first six months of account opening.

Some important details include:

  • A $49 annual fee
  • 0% APR on purchases for the first six months
  • May be approved without any credit history or credit score
  • A refundable security deposit between $200 and $2,000
  • Account usage is reported to all three credit bureaus
  • Not available in NY, IA, AR, or WI

The most significant benefit of this card outside of the standard credit building features is the introductory APR and the relatively high initial credit limit amount of $2,000.

To learn more about this card and its benefits, click here.


Applied Bank Gold Preferred Secured Visa Credit Card: Best for guaranteed approval

  • LendEDU Rating: 4.5/5
  • Annual fee: $48
  • Security deposit: $200 – $1,000
  • Editor’s thoughts: This card reports to all three credit bureaus and approval is guaranteed with no credit check or minimum credit score required

The Applied Bank Gold Preferred Secured Visa Credit Card says above the application that approval is guaranteed and no credit check or minimum credit score is required. Approval can be received in as fast as 60 seconds.

Some important details include:

  • A $48 annual fee
  • Approval is guaranteed, and no credit check or minimum credit score is required
  • An initial refundable security deposit between $200 and $1,000
  • Account usage is reported to all three credit bureaus

If approved, you can add additional deposits to your account for a credit limit of up to $5,000. This credit limit is much higher than most of the other secured cards advertise.

To learn more about this card and its benefits, click here.


Recap of the best secured credit cards

Card NameAnnual feeBest for
Capital One Platinum Secured$0Overall & personalizing your payment method
OpenSky Secured Visa Card$35No credit check
First Progress Platinum Prestige Mastercard Secured$49Low APR
Assent Platinum 0% Intro Rate Mastercard Secured Credit Card$490% intro APR
Applied Bank Gold Preferred Secured Visa Credit Card$48Guaranteed approval

How We Chose the Best Secured Credit Cards

To find the best secured credit cards, our Editorial Team analyzed cards by its annual fee, security deposit range, unique benefits, rewards, number of credit bureaus the issuer reports to, and whether the issuer is nationally recognized.

Learn more about our ratings and methodology here.

How Secured Credit Cards Work

A secured credit card looks, feels, and acts virtually the same as an unsecured credit card. It is usually issued as a Visa or Mastercard, so it is widely accepted with most U.S. merchants or abroad.

As with unsecured credit cards, monthly interest is charged when you carry a balance on secured cards, and there’s sometimes an annual fee for being a cardmember. And, just like a regular card, if you’re late with a payment, you’ll be charged a late payment fee.

The only real difference between secured and unsecured cards is that the credit line on a secured card is established based on the value of a savings deposit in a bank account with the issuing financial institution.

The deposit, which is typically in the range of $200 to $3,000, is usually equal to your line of credit. However, with some secured cards, a percentage of your deposit is held in reserve as a cushion in case you go over your credit limit or miss a payment. Conversely, some banks add some real credit on top of your secured line, and if you demonstrate responsible card use and dependable payment history, they’ll further increase your credit limit.

When your credit card issuer starts increasing your credit limit, you’ll be well on your way towards applying for an unsecured card.

How Secured Credit Cards Help Build Credit

Your payments are reported to the credit bureaus with most secured cards — although you should verify that this is the case with your card issuer. Depending on your overall credit and financial situation, you could build a payment history sufficient to qualify for additional credit within a six- to 12-month period using your secured card and making on-time payments.

Your goal should be to convert to an unsecured card as quickly as possible, so it’s essential to manage your use of a secured credit card just as you should with an unsecured card. That means making on-time payments and keeping your credit utilization ratio below 30% of your credit limit — at most. It’s even better to pay your balance in full each month.

>> Read More: How to Build Credit With a Credit Card

Secured Credit Cards Have Become Popular

Secured credit cards have come a long way since the early days when they were a costly option only for people without credit. You might be surprised to know secured credit cards have gone mainstream, and a study conducted by the Federal Reserve Bank of Philadelphia shows their popularity is on the rise.

An increasing number of people are using secured cards out of practicality and in pursuit of frugality, which has become fashionable in recent years. Secured credit cards have become a go-to for households and businesses that want more structure in their budget and who want to manage their cash flow more effectively. Secured cards can also be a good option for families who wish to use them as a starter credit card for their teenage children to help them learn good credit habits — although a student credit card might be a better option for this purpose.

How Secured Credit Cards Have Changed

There’s a good reason that secured cards have become more mainstream: these cards have changed a lot. Here are a few changes:

  • Reduced fees: Once notorious for high account fees, secured credit cards can now be found with costs lower than many unsecured cards or with no fees at all. The growing interest in secured credit cards has spurred a competition among issuers, making these cost-effective cards widely available.
  • Interest payments: Some bank-issued cards allow you to deposit your security deposit in an interest-bearing account that puts your balance to work until it’s returned to you.
  • Rewards: An increasing number of secured card issuers offer rewards and cash-back programs, allowing you to earn perks for spending while building your credit.
  • Banking from home: As with other credit cards, most secured credit card issuers offer online access to your account, making it very easy to manage your banking, bills, cash flow, and budget.
  • Fraud and warranty protection: One of the more important reasons to use a credit card for any purchase is to protect against problems with products. Your money is also protected against the fraudulent use of your card.

What to Look for in a Secured Credit Card

The growing popularity of secured credit cards has increased competition among credit card issuers, which has led to many upgrades in the features and terms that secured cards offer. It’s more important than ever to compare secured card options and not settle for an average card. When looking for the perfect card, here are a few key features to compare:

  • Credit bureau reporting: The primary reason for obtaining a secured card is likely building credit — which can’t happen if the issuer doesn’t report payments to the credit bureaus. It is important to check to see that the issuer reports payments to all three credit bureaus.
  • Credit limit: Although most secured credit card accounts start with a credit limit based on your initial deposit, some issuers allow cardholders to increase their limit by adding to their deposits. Depending on your creditworthiness, some issuers will also increase the credit limit beyond the initial deposit amount.
  • Upgrades to unsecured cards: Some secured credit card issuers include a specific pathway to convert a secured credit card account into an unsecured account based on payment history. Issuers that offer this opportunity will monitor your account and upgrade your account after a certain number of payments (usually 6–12 months of on-time payments)
  • Reasonable fees: Secured credit card fees have come down substantially, and most charge annual fees below $50. Many cards also have no annual fee, but applicants should always watch for smaller hidden fees and avoid cards that require monthly maintenance or application processing fees.
  • Reasonable APRs: Generally, the annual percentage rate (APR) on secured credit cards is higher than unsecured credit cards. Although the APR shouldn’t be a significant consideration (because secured credit card users should always strive to pay their balance in full each month), some cards offer reasonable rates in the range of 10% to 20%. Some cards have rates below 15%.
  • Interest on deposits: Some card issuers treat your deposit as a savings account that can earn interest. It’s nice to know that your money is working for you while it’s deposited to help you build credit.

Best Secured Credit Cards FAQ

Why Do Secured Credit Cards Rarely Offer Rewards to Cardholders?

Higher-risk customers generally hold secured credit cards, including customers with low credit scores or no credit at all. Issuers are less likely to offer rewards to these high-risk customers.

Unsecured cards are also designed to have a low entry barrier and therefore have lower fees (or no fees). Credit card companies don’t make as much money off their secured credit card customers as they do other unsecured cards, so they are hesitant to offer rewards for these less profitable accounts.

Finally, most secured cards also have low spending limits. The best rewards credit cards often come with spending minimums to reap the most benefits from the rewards, and secured cards can’t do this if credit limits are low.

Will Closing a Secured Credit Card Hurt Your Credit Score?

Closing any credit card can have an impact on your credit score. That’s because of the three major credit bureaus — TransUnion, Equifax, and Experian — factor in how much of your available credit you’ve used as well as the length of your credit history. When you close an old card, you shorten your average age of credit and reduce the total credit available to you, impacting your credit utilization ratio.

While many people close secured cards when they graduate to a new unsecured card, you might want to postpone this decision until you’ve got a larger line of credit with the new card.

What Are Your Options if Denied for a Secured Credit Card?

Secured credit cards typically offer credit to those who have no credit history or with low credit scores. But that doesn’t always mean just anyone can get a secured credit card — you will still need to meet specific criteria.

If you have issues with payment history (which accounts for about 35% of your FICO score) or have experienced a recent bankruptcy, you could be denied. If that happens to you, don’t keep applying to credit cards as too many new applications will reduce your credit score even more.

Instead, consider getting a share-secured loan. These loans are a way to build credit. Share-secured loans rely on a customer deposit. Some lenders also offer credit builder loans.

Review the Best Secured Credit Cards Before Making Your Final Decision

Even people with the worst credit have an opportunity to get approved for some of the best secured credit cards. And, if your credit is at least fair, your options open up to secured credit cards with low or no annual fees, lower APRs, and higher credit limits. Whatever your situation, you should carefully compare secured credit cards by looking at their features and terms. And remember, secured credit cards should be used strictly to build credit, which means limiting its use, making payments on time, and paying the balance in full each month.

>> Read More: Best credit cards