Best Secured Credit Cards of December 2023

Secured credit cards can be a great tool to build credit. You don't need to have good credit or any credit at all to qualify. As you make your monthly payments, your actions will be reported to the major credit bureaus, and this can help to raise your credit score.

The best secured credit cards have low deposit requirements. However, be aware that some secured credit cards may come with hidden fees or high interest rates. Here are our picks for the best secured credit cards in 2023.

Not all of the best secured credit cards are the same. You'll want to spend some time comparing credit cards to find the right one for you. Take a look at various features of each card and consider your own situation and financial goals.

Here's what to look for when searching for the best secured credit card:

• Low security deposit. Secured credit cards with a low deposit amount are the easiest and often best option, because they require less money upfront.
• No annual fee. A secured card with no annual fee will help you minimize costs. Building or rebuilding credit shouldn't cost you money.
• Free credit score. You'll want to check your credit score regularly as you work on improving it. While some services charge you to do this, many secured credit cards provide your credit score for free.
• Ability to upgrade. Ideally, you want a secured credit card that you can eventually upgrade to an unsecured version once you've completed enough on-time payments.
• Rewards. While a rewards program shouldn't be a top priority while building your credit, earning some cash back on your spending doesn't hurt.

Discover it® Secured Credit Card

Great for: Cash back rewards match

The Discover it® Secured Credit Card is a good secured credit card with no annual fee. It offers a cash back match on all rewards earned in the first year. Cardmembers can also earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter and 1% cash back on all other purchases.

Read the full Discover it® Secured Credit Card review

U.S. Bank Secured Visa® Card

Great for: High secured credit line

There's no annual fee to use this card, though it does require a minimum deposit of $300. However, the U.S. Bank Secured Visa® Card also has a higher credit limit than other secured cards and allows a limit of up to $5,000 depending on the deposit made.

Read the full U.S. Bank Secured Visa® Card review

OpenSky® Secured Visa® Credit Card

Great for: No credit

The OpenSky® Secured Visa® Credit Card has an annual fee of $35 and a minimum deposit of $200. While it does charge an annual fee, this card doesn't require a credit check, and that can be a great option for people with limited credit history.

Read the full OpenSky® Secured Visa® Credit Card review

Bank of America® Customized Cash Rewards Secured credit card

Great for: High cash back rewards

The Bank of America® Customized Cash Rewards Secured credit card is a no annual fee card with the ability to earn higher rewards than most secured cards. It does have a minimum deposit fee of $300, but card users can earn 3% cash back with additional earnings of 2% and 1% cash back depending on the category. The bonus cash back is capped at $2,500 of bonus-category spending each quarter.

Read the full Bank of America® Customized Cash Rewards Secured credit card review

Capital One Quicksilver Secured Cash Rewards Credit Card

Great for: Unlimited cash back

The Capital One Quicksilver Secured Cash Rewards Credit Card (see rates and fees) has a $0 annual fee and a relatively low minimum deposit of $200. It offers a flat-rate 1.5%-5% cash back, and even higher cash back potential on hotels and rental cars booked through Capital One Travel.

Read the full Capital One Quicksilver Secured Cash Rewards Credit Card review

U.S. Bank Altitude Go Visa Secured Card

Great for: Dining and gas

The U.S. Bank Altitude Go Visa Secured Card is a compelling secured rewards card with no annual fee, though it does require a minimum deposit of $300. Earn 4x points per dollar on dining (including takeout), 2x points per dollar on groceries, 2x points per dollar on gas stations, 2x points per dollar streaming services, 1x point per dollar on other purchases.

Read the full U.S. Bank Altitude Go Visa Secured Card review

A secured credit card is a credit card that requires a refundable security deposit. It's designed to help consumers build or rebuild credit. These cards typically come with very low credit limits. As a result, it's easy to gain approval for them -- even with bad or no credit.

Using a secured credit card is an excellent way to build credit because your card issuer reports your monthly payments to the major credit bureaus. However, be wary of secured credit cards with hidden fees and unreasonably high interest rates.

The best secured credit cards have low deposit requirements and free credit scores. It's also a good idea to look for a secured card with no annual fee.

Instead of taking out personal loans for bad credit, some people choose to use a secured credit card to build their credit and improve their money management habits.

Secured credit cards are a good idea when you're looking to build or rebuild credit. They're especially helpful if you can't qualify for a regular credit card. After first understanding how credit cards work, the following will help you decide if a secured credit card is right for you.

1. You want to build credit from scratch. If you're new to credit, one of the best things you can do for your credit score is to build a solid history of on-time payments. You can do this by using a secured credit card regularly and paying it off in full every month. Just make sure you never miss a monthly payment. If you do, your credit card issuer will report that missed payment to the credit bureaus, and you'll be hit with a late fee.
2. You have bad credit and want to rebuild. Want to know how to rebuild your credit? Secured cards might be the answer. If you have late payments on your credit history or you've filed for bankruptcy, secured credit cards are often the best -- and sometimes only -- option for establishing a positive monthly payment history.
3. You want to improve your credit score without falling into debt. If you're looking to increase your credit score, but you're worried about overspending, a secured credit card is a good option. Secured cards come with low credit limits. If you've already racked up a balance in the past, understanding how to pay off debt will help you get that number back to zero.

Before opening a secured credit card, you'll want to be aware of the pros and cons. Understanding these points can help you better choose the best secured credit card for you.

Pros

• The approval odds are higher than unsecured cards. If you've struggled to get approved for an unsecured card, or if you know you won't qualify for one, a secured card may be a better option. The approval odds are higher, even for individuals with low scores or limited credit history.
• They can be used to build credit. If you need to improve your credit or build credit from scratch, you'll be able to do so with a secured credit card. Make sure that you use your card responsibly and make at least the minimum payment each month, though paying your balance in full is ideal.
• Deposits are refundable. While you will need to make a deposit to get a secured card, this deposit will be refunded in the future. In most cases, your deposit will be paid back to you once your account is paid in full and closed.
• You may be able to upgrade to an unsecured card. Once you open a secured credit card and prove that you're responsible, the card issuer may allow you to upgrade the card to an unsecured card.

Cons

• These cards require a security deposit. If you're already struggling with your finances or are having trouble paying off debt, coming up with a security deposit may feel challenging. If this feels like a struggle for you, take a look at secured credit cards that have a low deposit requirement. Each card will have a minimum required security deposit in place.
• The card may come with fees. Some secured credit cards charge an annual fee. There are also secured cards with more hidden fees, like application or processing fees. Look for cards with no fees.
• The card may have a high interest rate. Secured credit cards are not known for their competitive interest rates, which is why you'll want to make more than just the minimum payment. Avoid paying interest by paying your card balance in full every month.
• You may not be able to earn rewards. While there are some secured credit cards out there that allow you to earn rewards, not all do. You may have to settle for a card with no rewards program or one with minimal rewards while you work to build your credit.

If a secured credit card doesn't feel right for you, there are other card options available. Here are some alternatives to consider.

Credit cards for bad credit

Credit cards for bad credit are also worth considering. Some of the best credit cards for bad credit don't require a security deposit at all. That said, the ones that don't require a security deposit often charge an annual fee instead. Other times, they're harder to get if you have serious negative marks on your credit.

Authorized user status for an unsecured credit card

Most major credit card issuers don't allow for cosigners. However, many allow cardholders to add authorized users to their accounts. An authorized user is someone who's allowed to make purchases using a credit card that isn't in their name. Most, but not all, credit card issuers that allow authorized users report the card's activity to the credit bureaus on behalf of the authorized user. Depending on the credit habits of the cardholder, this could help or hurt your credit score.

Store credit cards

Store credit cards that you can only use at a specific retailer are known as closed-loop credit cards. These cards are typically easier to get approved for than a traditional credit card, so they could help you build credit if you have a bad score or a limited credit history. However, they often have low credit limits, high APRs, and frequently charge deferred interest.

Student credit cards

If you're a student working on building credit from scratch, you should also consider the best credit cards for students. Many of these credit cards don't require a lengthy credit history or a security deposit. Some even come with rewards geared toward a student lifestyle.