Finder makes money from featured partners, but editorial opinions are our own. Advertiser disclosure

Best secured credit cards

Feeling insecure about your credit score? These secured credit cards can build credit history and confidence.

Bethany Hickey's headshot

By

Bethany Hickey

Edited by

Alexa Serrano Cruz

Updated

Fact checked

Whether you need your first credit card or you’re looking to build credit history, secured credit cards are a great way to go about it. These cards work very similarly to unsecured credit cards (or regular credit cards), except secured cards are backed by a security deposit. Other than the deposit, you can charge them just like regular cards, repay your balance and build a positive credit history.

And the pièce de résistance — secured cards are much easier to qualify for than regular credit cards, so having bad or no credit history shouldn’t be too much of a problem.

6 best secured credit cards

Best overall

Discover it® Secured

4.4
★★★★★

Finder score

Minimum deposit requiredStarting at $200
Purchase APR27.74% variable
Annual fee$0
Minimum credit score300

Best for low deposit

Capital One Platinum Secured Credit Card

4.4
★★★★★

Finder score

Go to site
Terms apply, see rates & fees.
Read review
Minimum deposit required$49, $99 or $200
Purchase APR29.99% variable
Annual fee$0
Minimum credit scoreNew / limited credit

Best for teenagers

Step Visa Card

4.8
★★★★★

Finder score

Go to site Read review
Minimum deposit requiredN/A
Annual fee$0
Minimum credit scoreNew / limited credit

Best for no deposit

Chime® Credit Builder Secured Visa® Credit Card

4.8
★★★★★

Finder score

Go to site
See terms and conditions
Chime is a financial technology company, not a bank. The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
*Out-of-network ATM withdrawal and OTC advance fees may apply. View the Bancorp agreement or Stride agreement for details; see back of card for issuer.
Minimum deposit requiredN/A - See terms
Purchase APRN/A n/a
Annual fee$0
Minimum credit score300

Partner terms and conditions
Chime is a financial technology company, not a bank. The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., Members FDIC, pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
To apply for Credit Builder, you must have an active Chime® Checking Account.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
*Out-of-network ATM withdrawal and OTC advance fees may apply. View the Bancorp agreement or Stride agreement for details; see back of card for issuer.

Best for cashback rewards

U.S. Bank Cash+® Secured Visa® Card

Terms apply, see rates & fees.
Minimum deposit requiredStarting at $300
Purchase APR29.99% variable
Annual fee$0
Minimum credit score580

Best for Amazon shoppers

Amazon Prime Secured Card

Minimum deposit requiredStarting at $100
Purchase APR10% fixed
Annual fee$0
Minimum credit scoreNew / limited credit

Methodology: How we chose the best secured credit cards

Finder’s banking experts analyze over 40 secured credit cards with no annual fees. Secured credit cards either require an opening deposit or bank account as security, and we only considered cards with deposit requirements at or below $300. We favored cards with rewards, such as travel points or cash back, and cards with low or no APR.

  • $0 annual fee
  • Deposit requirement at or below $300
  • Lenient credit score requirements
  • Reports to all three credit bureaus

How do secured credit cards work?

Secured credit cards are a form of revolving credit. With secured or unsecured credit cards, your credit limit is how much you can borrow before the card becomes “maxed out.” When you use the card, you incur a debt you can pay in full or in installments. If you don’t repay your owed balance by the end of the billing cycle (typically month to month), your outstanding balance is charged interest. You must also make a minimum monthly payment each billing cycle, and if you don’t, you’ll incur late fees.

Secured cards work almost identically to regular credit cards — the only real difference is the security deposit requirement. The deposit serves two purposes: The amount you deposit typically sets your borrowing limit and acts as security for the lender if you can’t repay your balance. In comparison, traditional, unsecured credit cards don’t require a deposit but may require higher credit score requirements in return.

How to compare the best secured credit cards

To find the right secured card, keep these points in mind:

  • The security deposit. Most secured cards require at least $200 to get started, and the deposit often sets your credit limit. If you want a high credit limit, count on needing a high security deposit, but if you want to build credit without the risk of high debt, a low deposit might be a better idea. In addition, there are secured cards without security deposit requirements, like the Chime® Credit Builder Secured Visa® Credit Card and the Step card.
  • Credit score requirements. Most secured cards have lenient credit score requirements, sometimes not requiring a hard credit check or a specific credit score requirement. However, some secured cards perform a hard credit check and require fair to good credit.
  • Credit reporting. Most traditional, secured credit cards will report to all three major credit bureaus, but there are credit-building products with limited reporting action, so look out for that.
  • Affordable fees. On our list of the best secured credit cards, we only considered cards with no annual fee. But if you widen your search, compare a card’s annual, monthly and late fees.
  • Upgrade options. Some secured cards will let you “graduate” or “upgrade” to an unsecured version or increase your credit limit after you prove good financial management, often after six months to a year.
  • Rewards and perks. One of the best perks with credit cards is the rewards, whether it’s cashback on everyday purchases or travel points. Traditional credit cards are more likely to offer rewards, but a few, like Discover it® Secured, Fizz card and the U.S. Bank Cash+® Secured Visa® Card, offer tempting rewards programs.

Can a secured credit card build credit history?

Yes! A secured credit card can build credit history just like a regular credit card. However, you’ll have to repay your owed balance each billing cycle diligently, or you could damage your credit score.

Secured credit cards are revolving credit, which means a major player in how credit cards impact your credit score is your credit utilization ratio. In a nutshell, this ratio is the amount of debt you owe compared to your available credit limits. For example, if you have a secured credit card with a limit of $1,000 and owe $900, you’ve got a high credit utilization ratio of 90%, and it’s likely harming your credit score. If you keep your credit utilization ratio under 30%, it can help your credit score.

And just like other types of credit, missed or late payments on your secured credit card can do major damage, often hurting your credit score by as much as 100 points per missed payment.

Is a secured credit card a good idea?

Secured credit cards can be worth it if you need to start your credit history or get on the path to credit repair. Thanks to their low credit score requirements, they can be a good idea for new or bad credit borrowers who need some positive credit history added to their credit reports.

However, you’ll have to pay attention to the card agreement and make your payments on time, or you can risk damage to your credit score. If you tend to overspend with credit cards, frequently miss payments or don’t have a budget, you may not be a good fit for credit cards.

Alternatives for credit building

Secured credit cards don’t have to be your introduction to credit-building or borrowing.

  • Rent reporting services. If you’re a renter and want credit history for those on-time payments, a rent-reporting service can be a great idea.
  • Credit-builder loans. Designed for new borrowers, credit-building loans are small installment loans offered by small banks or credit unions to build credit history.
  • Credit-building apps. There are lots of credit-building apps with tools like rent reporting, credit-building loans, subscription service credit-building, dispute tools and more.
  • Debit-credit cards. Similar to secured credit cards, debit-credit cards are backed by a linked bank account, just like Chime Secured Credit Builder Visa® Credit Card. These cards often have no security deposit requirement, APR or annual fees.
  • Regular credit cards. Or lesser-known as unsecured credit cards, there are credit cards for less-than-ideal credit.

Bottom line

A secured card can help you build up your credit score, but you’ll often face higher fees and lower rewards. If you’re on the fence, compare alternative credit cards to find the right pick for you.

Frequently asked questions

How much will I need to deposit for a secured card?

The deposit amount depends on the specific credit card as well as your existing credit score. Typically, the lowest amount you can deposit is either $200 or $300.

Why do I need to place a security deposit on a secured credit card?

In most cases, your security deposit sets your credit limit. Your security deposit serves as collateral for the card issuer if you fall behind or default on your account.

Can you get cash back on a secured credit card?

Yes, there are plenty of secured credit cards with cashback rewards. A few cashback secured credit cards include the Discover it® Secured card, the US Bank Cash+ Visa Secured Card and the secured Amazon credit cards.

Can you get denied for a secured card?

Yes, it is possible to be denied a secured credit card, even though many secured cards have lenient credit requirements. A few common reasons a credit card issuer can deny a credit card application include having a very poor credit history, a high credit utilization ratio or not having enough income to make minimum monthly payments.

Credit card ratings

★★★★★ — Excellent

★★★★★ — Good

★★★★★ — Average

★★★★★ — Subpar

★★★★★ — Poor

Our team evaluates credit cards to determine their value against similar cards on the market.

We rank card types — travel, cash back, business — on a set of factors that are most relevant to that type of card. We create these rankings to help you narrow down a credit card that best suits your spending and budget.

Learn the details of our methodology and scoring.

Alexa Serrano Cruz's headshot
To make sure you get accurate and helpful information, this guide has been edited by Alexa Serrano Cruz as part of our fact-checking process.
Bethany Hickey's headshot
Written by

Editor, Banking

Bethany Hickey is the banking editor and personal finance expert at Finder, specializing in banking, lending, insurance, and crypto. Bethany’s expertise in personal finance has garnered recognition from esteemed media outlets, such as Nasdaq, MSN, Yahoo Finance, GOBankingRates, SuperMoney, AOL and Newsweek. Her articles offer practical financial strategies to Americans, empowering them to make decisions that meet their financial goals. Her past work includes articles on generational spending and saving habits, lending, budgeting and managing debt. Before joining Finder, she was a content manager where she wrote hundreds of articles and news pieces on auto financing and credit repair for CarsDirect, Auto Credit Express and The Car Connection, among others. Bethany holds a BA in English from the University of Michigan-Flint, and was poetry editor for the university’s Qua Literary and Fine Arts Magazine. See full bio

Bethany's expertise
Bethany has written 433 Finder guides across topics including:
  • Personal finance
  • Banking
  • Auto loans
  • Insurance
  • Cryptocurrency and NFTs
More resources on Finder

More guides on Finder

Ask a question

Finder.com provides guides and information on a range of products and services. Because our content is not financial advice, we suggest talking with a professional before you make any decision.

By submitting your comment or question, you agree to our Privacy and Cookies Policy and finder.com Terms of Use.

Questions and responses on finder.com are not provided, paid for or otherwise endorsed by any bank or brand. These banks and brands are not responsible for ensuring that comments are answered or accurate.

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.
Go to site