Best Secured Credit Cards of January 2022
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ALSO CONSIDER: Best credit cards of 2022 || Best credit cards for bad credit || Best credit cards for fair credit || Best unsecured cards for short credit histories
Whether you're looking to build credit from scratch or rebuild credit after a bad setback, a secured credit card can be an invaluable tool. Secured cards require you to provide a cash security deposit, usually equal to your credit line. The issuer holds the deposit in case you don't pay your bill; you get the deposit back when you upgrade to a regular "unsecured" card or close the account in good standing. Because the deposit protects the issuer from losing money, secured cards are easier for people with bad credit or no credit to qualify for.
As you use the card, the issuer reports your activity to the credit bureaus — the companies that compile the credit reports that form the basis of credit scores. Keep your balance relatively low and pay your bill on time every month, and you can begin to strengthen your credit. Learn more about secured cards.
ALSO CONSIDER: Best credit cards of 2022 || Best credit cards for bad credit || Best credit cards for fair credit || Best unsecured cards for short credit histories
Whether you're looking to build credit from scratch or rebuild credit after a bad setback, a secured credit card can be an invaluable tool. Secured cards require you to provide a cash security deposit, usually equal to your credit line. The issuer holds the deposit in case you don't pay your bill; you get the deposit back when you upgrade to a regular "unsecured" card or close the account in good standing. Because the deposit protects the issuer from losing money, secured cards are easier for people with bad credit or no credit to qualify for.
As you use the card, the issuer reports your activity to the credit bureaus — the companies that compile the credit reports that form the basis of credit scores. Keep your balance relatively low and pay your bill on time every month, and you can begin to strengthen your credit. Learn more about secured cards.
Best Secured Credit Cards
Our pick for
Low deposit
on Capital One's website
on Capital One's website
Annual fee
$0
Intro APR
N/A
Regular APR
26.99% Variable APR
Recommended Credit Score
The Capital One Platinum Secured Credit Card may not be a good fit for folks recovering from major credit damage, but it could be an excellent match for someone getting a credit card for the first time.
The Capital One Platinum Secured Credit Card may not be a good fit for folks recovering from major credit damage, but it could be an excellent match for someone getting a credit card for the first time.
Pros
With most secured cards, your deposit must be equal to your credit limit. But with the Capital One Platinum Secured Credit Card, you can get a limit of $200 for a deposit of $49, $99 or $200. If you can’t come up with your whole deposit upfront, you can pay it in installments before activating your card. Pay your bill on time, and you can also be automatically considered for a higher credit line in as little as six months.
Cons
Underwriting standards are tighter than for many other secured cards. You generally won’t qualify if you don’t have a checking or savings account, if you have non-discharged bankruptcy, or if your rent is almost as high as your monthly income, among other reasons.
No annual or hidden fees. See if you're approved in seconds
Building your credit? Using the Capital One Platinum Secured card responsibly could help
Put down a refundable security deposit starting at $49 to get a $200 initial credit line
You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
Monitor your credit with CreditWise from Capital One. It's free for everyone and checking your credit does not hurt your credit score
Our picks for
Rewards and upgrading
on Discover's website, or call 800-347-0264
on Discover's website, or call 800-347-0264
Annual fee
$0
Intro APR
10.99% intro APR on Balance Transfers for 6 months
Regular APR
22.99% Variable APR
Recommended Credit Score
When you consider the rewards, the lack of an annual fee and the opportunity for an upgrade, the Discover it® Secured Credit Card is the best secured credit card we've seen.
When you consider the rewards, the lack of an annual fee and the opportunity for an upgrade, the Discover it® Secured Credit Card is the best secured credit card we've seen.
Pros
The rewards on this card — 2% cash back on up to $1,000 worth of spending per quarter on restaurants and gas, and 1% on all other spending — would be pretty decent on a regular card. For a secured credit card, they’re unheard of. After seven months, Discover automatically evaluates your account for possible upgrade to an unsecured card. And the annual fee is $0.
Cons
The initial deposit must be paid with a bank account; if you’re unbanked, you’re out of luck. For some people, the $200 minimum deposit will be a stretch. For others, the maximum $2,500 credit limit will be too low.
No Annual Fee, earn cash back, and build your credit with responsible use.
Using your secured credit card helps build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can’t do that.
Establish your credit line with your tax return by providing a refundable security deposit of at least $200. Bank information must be provided when submitting your deposit.
Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.*
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
Discover is accepted nationwide by 99% of the places that take credit cards.
Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score.
INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
Click "APPLY NOW" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
- View Rates & Fees
on Capital One's website
on Capital One's website
Annual fee
$0
Intro APR
N/A
Regular APR
26.99% Variable APR
Recommended Credit Score
The Capital One Quicksilver Secured Cash Rewards Credit Card offers the ability to build or rebuild credit while also enjoying a simple, straightforward rewards rate.
The Capital One Quicksilver Secured Cash Rewards Credit Card offers the ability to build or rebuild credit while also enjoying a simple, straightforward rewards rate.
Pros
The $0-annual-fee card earns 1.5% cash back on all purchases — a decent rate even among unsecured cards. It offers an automatic credit limit review after six months and a possible upgrade path to a traditional, unsecured card with Capital One.
Cons
As with all secured cards, an upfront deposit is required. The $200 minimum might be a tough hurdle for some to clear.
No annual or hidden fees, and you can earn unlimited 1.5% cash back. See if you're approved in seconds
Building your credit? Using a card like this responsibly could help
Put down a refundable $200 security deposit to get a $200 initial credit line
You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
Monitor your credit with CreditWise from Capital One. It's free for everyone and checking your credit does not hurt your credit score
Earn unlimited 1.5% cash back on every purchase, everywhere. No rotating categories or limits to how much you can earn. It's that simple
Our pick for
Easy account management
on Chime's website
on Chime's website
Annual fee
$0
Intro APR
N/A
Regular APR
N/A
Recommended Credit Score
The Chime Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer
The Chime Credit Builder Visa® Credit Card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer
Pros
Instead of a security deposit, the card is backed by the money in a linked account, which you can add to at any time. The card won't let you spend any more than you have in the account, and when your payment is due, you can have the money taken from the account automatically. In a way, it works like a prepaid debit card, but unlike a prepaid card, it helps build credit. No credit check required to apply.
Cons
The safety precautions that make it an excellent tool for building credit can also get in the way of learning how to handle credit responsibly. Any card you graduate to will work quite differently. Chime has been the subject of multiple complaints related to the way it freezes customers' funds.
Chime is a financial technology company, not a bank. Banking services provided by, and debit card issued by, The Bancorp Bank or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.
No credit check to apply, no annual fees or interest, and no minimum security deposit required. No stress! Additional terms apply.
Use your secured Credit Builder card everywhere VISA is accepted, including on everyday purchases, such as gas and groceries.
Help build your credit history with your own money. The money you move into the Credit Builder secured account is the amount you can spend on your card (no minimum deposit required!). Turn on Safer Credit Building and have your monthly balance automatically paid on time. Chime will report your activities to Transunion®, Experian®, and Equifax®.
Increase your credit score by an average of 30 points, with regular, on-time payments.<sup>1</sup>
Turn on transaction notifications to receive real-time transaction alerts. Then, use Chime’s instant in-app disable card feature to help prevent unauthorized activities.
Live support 24/7 to assist you around the clock.
Now you can use your Credit Builder card fee-free at over 60K+ in-network ATMs at retailers like Walgreens, CVS, and more! Out-of-network ATM withdrawal fees may apply except at Moneypass ATMs in 7-Eleven locations, or any Allpoint or Visa Plus Alliance ATMs.
Apply for a secured Chime Credit Builder Visa® Credit Card once you sign up for a Chime Spending Account and receive a qualifying direct deposit of $200 or more. See www.chime.com to learn more.
Our pick for
No credit check or no bank account
on Capital Bank's website
on Capital Bank's website
Annual fee
$35
Intro APR
N/A
Regular APR
17.39% Variable APR
Recommended Credit Score
You don't have to undergo a credit check to apply, and you don't need a bank account to qualify. If these are areas of concern for you, the OpenSky® Secured Visa® Credit Card is definitely worth a look. If not, there are better (and cheaper) alternatives.
You don't have to undergo a credit check to apply, and you don't need a bank account to qualify. If these are areas of concern for you, the OpenSky® Secured Visa® Credit Card is definitely worth a look. If not, there are better (and cheaper) alternatives.
Pros
The issuer doesn’t run a credit check on OpenSky® Secured Visa® Credit Card applicants, making this an attainable option for people with severely damaged credit. You can make your deposit — minimum $200, maximum $3,000 — and pay your bills with a debit card, wire transfer, check or money order, making it one of the few secured cards that doesn’t require a traditional bank account.
Cons
There's an annual fee of $35 — not excessive for a card for those with very poor credit, but not $0, either. You generally can’t upgrade your account to an unsecured card.
No credit check to apply and find out instantly if you are approved.
OpenSky gives everyone an opportunity to improve their credit with an 85% average approval rate for the past 5 years.
Get considered for a credit line increase after 6 months, with no additional deposit required.
You could be eligible for the OpenSky Gold Unsecured Card after as few as 6 months.
Reports to all 3 major credit bureaus monthly, unlike a prepaid or debit card.
Nearly half of OpenSky cardholders who make on-time payments improve their FICO score 30+ points in the first 3 months.
Your refundable* deposit, as low as $200, becomes your OpenSky Visa credit limit.
Easy application, apply in less than 5 minutes right from your mobile device.
Offer flexible payment due dates which allow you to choose any available due date that fits your payment schedule.
Enjoy protection from unauthorized purchases with $0 fraud liability.
*View our Cardholder Agreement located at the bottom of the application page for details of the card
Our pick for
No-deposit alternative
So-called "alternative credit cards" can also be a good option for those with no or poor credit. Such cards are typically from smaller companies and startups, and many of them do not require a security deposit at all. The issuers behind these cards can opt to use proprietary, nontraditional underwriting standards — such as income, employment and bank account balances — to evaluate the risk of lending to you.
on Petal's website
on Petal's website
Annual fee
$0
Intro APR
N/A
Regular APR
19.99% - 29.49% Variable APR
Recommended Credit Score
The Petal® 1 "No Annual Fee" Visa® Credit Card requires no security deposit and, as its name suggests, has a $0 annual fee. Thanks to a unique underwriting process, it could be a good choice if you have less-than-ideal credit.
The Petal® 1 "No Annual Fee" Visa® Credit Card requires no security deposit and, as its name suggests, has a $0 annual fee. Thanks to a unique underwriting process, it could be a good choice if you have less-than-ideal credit.
Pros
Petal’s algorithm allows its issuing bank — WebBank — to look beyond just credit scores. It can evaluate your bank information to get a clear picture of how you manage income, savings and spending. The card is light on fees, reports to all three credit bureaus, and even offers the chance at earning rewards.
Cons
You may be required to link your bank account in order to get this card, and the rewards it does earn are only with select merchants.
$0 Annual Fee.
$300 - $5,000 credit limits.
Earn a credit limit increase in as little as 6 months. Terms and conditions apply.
No credit score? No problem. If eligible, we'll create your Cash Score instead.
2% - 10% cash back at select merchants.
Variable APRs range from 19.99% - 29.49%.
See if you're pre-approved within minutes without impacting your credit score.
No annual or foreign transaction fees.
Build credit alongside hundreds of thousands of Petal Card members.
Petal's mobile app makes it easy to manage your money, track your spending, and automate payments.
Petal reports to all 3 major credit bureaus.
No deposits required.
Card issued by WebBank, Member FDIC.
Want to compare more options? Here are our other top picks:
FULL LIST OF EDITORIAL PICKS: BEST SECURED CREDIT CARDS
Click the card name to read our review. Before applying, confirm details on the issuer’s website.
Our pick for: Rewards and upgrading
Like other secured credit cards for people building or rebuilding credit, the Discover it® Secured Credit Card requires a cash security deposit. Unlike most others, it offers rewards. But what really makes it stand out from the competition is its upgrade possibilities. The issuer has a process in place for automatically reviewing accounts for possible transition to an unsecured card. Read our review.
Our pick for: Rewards and upgrading
The Capital One Quicksilver Secured Cash Rewards Credit Card offers an impressive combination of features for those with poor credit. A deposit is required, but in exchange you get a $0-annual-fee card that reports to all three credit bureaus; an automatic credit limit review after six months; and a possible upgrade path to an unsecured Capital One card. Oh, and 1.5% back on all purchases, which equals what you'd find on many unsecured cards. Read our review.
Our pick for: Low deposit
The Capital One Platinum Secured Credit Card requires a security deposit, as do all secured credit cards. But while most cards require you to put down a deposit equal to your credit line, this one allows some qualifying applicants to get a $200 credit line with a deposit of $49 or $99. Further, you can be automatically considered for a higher credit line with no additional deposit in as little as six months. Read our review.
Our pick for: Basic card for thin credit
The Citi® Secured Mastercard® is a straightforward card for people new to credit — put down a security deposit, use the card to establish a positive credit history and then move up to a better card (and get your deposit back). One note: This card is for people just starting out with credit, rather than people with bad credit from past mistakes. Read our review.
Our pick for: No credit check or no bank account
The OpenSky® Secured Visa® Credit Card charges an annual fee, but a lot of people will still want to take a look at it for two reasons. First, there's no credit check required. Second, you don't need a traditional bank account; you can fund the deposit or pay your bill with a money order or Western Union payment. Read our review.
Our pick for: Easy account management
This card has no minimum deposit requirement, charges neither an annual fee nor interest, and doesn't require a credit check, and you can automate your payments so you're never late. But to get it, you must be a Chime banking customer, which is an extra hoop to jump through — and which comes with its own considerations when it comes to customer service. Read our review.
Our pick for: No-deposit alternative
The issuer of the Petal® 1 "No Annual Fee" Visa® Credit Card doesn’t only rely on credit scores to determine eligibility. Instead, it assesses your creditworthiness based on your income, expenses, savings and debts. The card earns a decent rate of up to 10% cash back when you use the card to shop with select merchants. And there's no annual fee, late fees or foreign transaction fees. Read our review.
Our pick for: Adjustable credit limit
The Credit Builder Secured Visa® Credit Card from Armed Forces Bank makes it easy to increase your credit line over time to give you greater flexibility and keep your credit utilization low. You can increase your limit in $50 increments simply by depositing more money at any time. Read our review.
Our pick for: Military
The no-annual-fee Navy Federal Credit Union® nRewards® Secured Credit Card earns rewards, offers an upgrade path and even features some perks, which is a lot from a secured product — if you can swing the membership and security deposit requirements. Read our review.
Our pick for: Low fees and interest
The DCU Visa® Platinum Secured Credit Card is a secured card for bad credit, but it offers a lower interest rate than many unsecured cards for people with good credit. You must be a member of Digital Federal Credit Union to get this card, although you can join by becoming a member of a partner organization for as little as $10. Read our review.
• • •
OTHER RESOURCES
By Paul Soucy, NerdWallet
Getting a secured credit card
Who can be approved?
Even though secured credit cards are available to people with bad credit, and even though the security deposit reduces the risk to the issuer, approval is not guaranteed for everyone:
The issuer will usually (but not always) check your credit report for signs that you're an unacceptable credit risk. If you're in the middle of a bankruptcy, for example, or you're currently delinquent on other accounts, or you've opened a bunch of new accounts recently, you're unlikely to be approved.
You'll also have to show that you have income so you can pay your credit card bill. Yes, the issuer has your deposit, but it will use that money to cover your bill only as a last resort. You're expected to pay your bill every month, so you'll need income.
How does the process work?
Every issuer handles things a bit differently, but the process of applying for, receiving and using a secured credit card works like this:
You apply for the card. The issuer evaluates how risky you are (a process called underwriting), and if you pass muster, you're approved.
You fund the deposit. Before the issuer will open your account, you have to pay your security deposit. In some cases, you must provide bank account information with your application so the deposit can be transferred right away. Other times, the issuer will give you some time to pull together the deposit. If you neglect to fund the deposit, the issuer will change the status of your application from approved to rejected.
You receive the card. Once your deposit is funded, the issuer will send you your card. You can then use it just like any other credit card. In general, it's best to use less than 30% of your available credit at any given time, so don't go maxing out your secured card. Use it for a few small purchases each month and pay them off promptly.
You get your bill and pay it each month. Because secured cards tend to charge very high interest rates, it's best to pay your bill in full every month to avoid finance charges. The issuer reports your payments to the credit bureaus, which helps you build credit.
You upgrade. As your credit moves from bad to average to good, you'll be in a position to qualify for better cards:
Some issuers automatically review your account for potential upgrade to an unsecured card. For example, Discover does this with the Discover it® Secured Credit Card after seven months. Navy Federal Credit Union starts automatic reviews after six months when you have the Navy Federal Credit Union® nRewards® Secured Credit Card. When your issuer moves you to an unsecured card, you get your deposit back.
With other issuers, you may have to specifically request an upgrade. That might mean converting your secured account to unsecured or closing your secured card and opening a new unsecured account. Either way, you get your deposit back.
If your issuer can't or won't upgrade you — and keep in mind that not all secured-card issuers even offer unsecured cards — you can apply for unsecured cards separately. Eventually you'll want to close the secured card to recoup your deposit.
Alternatives to secured credit cards
Unsecured cards for bad credit
Several issuers specialize in unsecured credit cards for people with bad credit, but NerdWallet generally doesn't recommend them. That's because these "subprime specialist" cards tend to charge high fees that can easily add up to much more than a typical minimum security deposit — annual fees up to $99, application fees, "activation" and "processing" fees, monthly maintenance fees and so on. And unlike the deposit on a secured card, those fees are money you can't get back. Our roundup of the best and worst cards for bad credit has more information on cards to avoid.
Prepaid debit cards
Prepaid debit cards offer convenience and are a safer alternative than carrying cash, but they don't help you build credit. With a prepaid debit card, you "load" money onto the card, and the purchases you make are paid for with that money. Since you're not borrowing money, there's no effect on your credit score. See NerdWallet's best prepaid cards.
Credit-builder loans
Offered mostly by smaller financial institutions, such as credit unions and community banks, these loans are designed to help you build a good payment history. The money you "borrow" isn't actually given directly to you. Instead, it's held on your behalf in a savings account while you repay the loan in monthly installments. Once you're done, the money is released to you — and your credit report shows a paid-off loan. Learn more about credit-builder loans.
Personal loans
These loans can be secured or unsecured. Unsecured loans (those without collateral, such as a car title) generally have higher interest rates than secured loans. The better your credit, the lower your rate is likely to be. Conversely, those with bad credit can expect to pay very high rates, if they can get a loan at all. Learn more about personal loans.
Last updated on January 14, 2022
Methodology
NerdWallet's Credit Cards team selects the best secured credit cards based on overall value, as evidenced by star ratings, as well as suitability for specific kinds of consumers. Factors in our evaluation include annual and other fees, security deposits (both the minimum required and maximum allowed), APRs, whether a card offers an option to upgrade to an unsecured account, the availability of free credit scores and other credit education, reporting to credit bureaus, and other noteworthy features such as a rewards program or the ability to qualify without a credit check. Learn how NerdWallet rates credit cards.
Frequently asked questions
Secured credit cards require a cash security deposit, while regular "unsecured" cards do not. The card issuer requires that you deposit some money — typically $200 or more — to open your secured card account. The deposit is there to protect the issuer in case you don't pay your bill. Because secured credit cards pose less risk to the issuer, they are generally easier to qualify for.
Secured credit cards usually require you to deposit at least $200 to $300, although some have minimum requirements as high as $500. See the chart of deposit requirements above.
No. A secured credit card is different from a prepaid debit card that you "load" with money. With prepid debit, you put money on the card, and then you spend that money when you make purchases. A secured card works just like a regular credit card: You make purchases with the card, and then you pay them off later. The deposit comes into play only if you don't make your payments. In that case, the issuer can use it to pay your debt.
In most cases, your credit limit will be equal to your security deposit. So if you deposit $300, you'll have a $300 credit limit on your card. If you deposit $1,000, you'll have a $1,000 limit, and so on. Most cards set a maximum amount you can deposit — say, $2,500 or $5,000 — which also limits your credit line.
It depends on the card. With some cards, you can increase your credit limit just by depositing more money. With others, you must apply for an increase. Some cards will automatically consider you for a credit line increase if you use the card responsibly for a while — not going over your limit and paying your bill on time every month. Also depending on the card, you might be able to get a higher credit line without depositing more money.
Yes, when you close your account in good standing (meaning you've paid off your balance) or when you upgrade to an unsecured card from the same issuer, your security deposit will be returned to you.
It depends on the card. There are excellent options that don't charge an annual fee, including several on this page. If you want a card that won't require a credit check or that charges an extra-low interest rate, you're more likely to pay an annual fee. In general, you shouldn't pay more than $50 a year for a secured card.
Secured credit card interest rates tend to be high — often well over 20% APR — although there are exceptions. Credit card issuers set interest rates according to risk: The higher the risk, the higher the rate. Since secured cards are designed for people building or rebuilding credit, they usually charge higher rates than "regular" cards. Keep in mind that if you don't carry a balance from month to month — that is, if you pay your balance in full every time — then your interest rate doesn't really matter because you don't get charged interest.
No. Even though the risk is lower, issuers of secured cards still have eligibility criteria. For example, you'll need to be able to pay your bill each month, so your application could be rejected if you don't have a job or if you have only a small income. If you have filed for bankruptcy and the case is still pending (meaning a court could wipe out any debt you put on a new card), you could be rejected. Some secured cards are designed only for people new to credit, rather than those with bad credit, so you could be rejected based on negative information on your credit report.
Use it to build your credit! Make small purchases with it regularly, and then pay those purchases off in full every month to avoid paying interest. Don't max out the card — in fact, strive to keep your balance below 30% of your limit. Ideally, you won't have this card forever. It's a tool you use to demonstrate to lenders that you can handle credit responsibly. As you build a solid payment history and your credit improves, you can start looking at cards with better benefits.
Yes, but be careful. Several specialist companies offer unsecured credit cards designed for people with bad credit, but we generally advise consumers to be cautious when applying for them. They tend to charge high fees that secured cards do not — application or "processing" fees at the beginning, annual fees as high as $99, monthly maintenance fees, and so on. And unlike a secured card deposit, none of these fees are refundable.
