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Best Secured Credit Cards of December 2024

Review Updated
Natasha Etzel
Author: Natasha Etzel
Natasha Etzel
Natasha Etzel
Writer

Natasha has been a freelance writer since 2015. She specializes in credit card and credit card rewards content. When not busy writing, she's either dreaming up her next credit card rewards redemption or traveling the globe. Her goal is to encourage more people to experience the world around them while making smart financial choices.

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Robin Hartill, CFP
Reviewer: Robin Hartill, CFP
Robin Hartill, CFP
Robin Hartill, CFP
Writer

Robin Hartill, CFP®, is Motley Fool Money’s Head of Product Ratings and has worked for The Motley Fool since 2020. Her work has appeared in various national publications, including NerdWallet and CNET Money. She previously wrote The Penny Hoarder’s syndicated “Dear Penny” personal finance advice column. She is based in St. Petersburg, Florida.

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Ashley Maready
Fact Checked: Ashley Maready
Ashley Maready
Ashley Maready
Writer and Editor

Ashley Maready is a former history museum professional who made the leap to digital content writing and editing in 2021. She has a BA in History and Philosophy from Hood College and an MA in Applied History from Shippensburg University. Ashley loves creating content for the public and learning new things so she can teach others, whether it's information about salt mining, canal mules, or personal finance.

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Many or all of the products here are from our partners that compensate us. It’s how we make money. But our editorial integrity ensures that our product ratings are not influenced by compensation. Terms may apply to offers listed on this page.

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 2024.

  • Our team of experts reviewed over 260 credit cards
  • We evaluate all credit cards across the same 4 key criteria: value, welcome experience, fees, and perks
  • Our credit card ratings are never influenced by our advertising partners
  • If we wouldn't recommend an offer to a close family member, we won't recommend it to you

Best secured credit cards
Show The List [+] Hide The List [-]

Ratings Methodology

Discover it® Secured Credit Card

Great for: Cash back

Apply Now for Discover it® Secured Credit Card

On Discover's Secure Website.

Rates & Fees External Link Icon

Discover it® Secured Credit Card
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: New/Rebuilding Under(579)
Apply Now for Discover it® Secured Credit Card

On Discover's Secure Website.

Rates & Fees External Link Icon

Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

New/Rebuilding Under(579)

Intro APR

Purchases: n/a

Balance Transfers: 10.99%, 6 months

Regular APR

27.49% Variable APR *Rates as of December 12, 2024.

Rewards Circle with letter I in it. 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. 1% unlimited cash back on all other purchases - automatically

1% - 2% Cashback

Annual Fee

$0

Welcome Offer

Discover will match all the cash back you’ve earned at the end of your first year.

  • We think this card has among the highest cash back potential for a secured card with no annual fee. The key is the Unlimited Cashback Match — Discover automatically matches the cash back new cardholders earn at the end of the first year. This card could be perfect for you if you're new to credit, or rebuilding after past troubles. Read Full Review

    • Cash back rewards
    • Great sign-up bonus offer
    • No annual fee
    • Can graduate to an unsecured card
    • Minimum deposit amount
    • No credit score required to apply. No Annual Fee.
    • Your secured credit card requires a refundable security deposit, and your credit line will equal your deposit amount, starting at $200. Bank information must be provided when submitting your deposit.
    • Raise your credit score by 30+ points.
    • 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, automatically. Plus earn unlimited 1% cash back on all other purchases.
    • Discover could help you reduce exposure of your personal information online by helping you remove it from select people-search sites that could sell your data. It’s free, activate with the mobile app.
    • Get an alert if we find your Social Security number on any of thousands of Dark Web sites. Activate for free.
    • Terms and conditions apply.

Capital One Quicksilver Secured Cash Rewards Credit Card

Great for: Unlimited cash back

Apply Now for Capital One Quicksilver Secured Cash Rewards Credit Card

On Capital One's Secure Website.

Rates & Fees External Link Icon

Capital One Quicksilver Secured Cash Rewards Credit Card
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: New/Rebuilding Under(579)
Apply Now for Capital One Quicksilver Secured Cash Rewards Credit Card

On Capital One's Secure Website.

Rates & Fees External Link Icon

Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

New/Rebuilding Under(579)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

29.99% (Variable)

Rewards Circle with letter I in it. Earn unlimited 1.5% cash back on every purchase, every day. Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply.

1.5%-5% cash back

Annual Fee

$0

Welcome Offer Circle with letter I in it. N/A

N/A

  • This no-annual-fee credit card earns an unlimited 1.5% cash back on all purchases, and offers free credit monitoring tools -- making it a solid secured credit card option for consumers who want to earn rewards while building or rebuilding their credit. Read Full Review

    • No annual fee
    • Unlimited cash back
    • No foreign transaction fees
    • Includes a free credit monitoring tool
    • Potential to get your security deposit back as a statement credit
    • Requires a security deposit
    • No sign-up bonus
    • High variable APR
    • No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds
    • Put down a refundable $200 security deposit to get a $200 initial credit line
    • Building your credit? Using a card like this responsibly could help
    • Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
    • 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
    • Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
    • Monitor your credit score with CreditWise from Capital One. It's free for everyone

Bank of America® Customized Cash Rewards Secured credit card

Great for: Secured credit card with cash back

Read Review
Bank of America® Customized Cash Rewards Secured credit card
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)
Read Review
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Fair/New to Credit Under(669)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

29.24% (Variable)

Rewards Circle with letter I in it. Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement/furnishings and 2% cash back at grocery stores and wholesale clubs on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%

1% - 3% cash back

Annual Fee

$0

Welcome Offer

N/A

  • One of the most competitive secured credit cards we've come across. The rewards program and $0 annual fee are standout features that beat many similar offers.

    • Cash back rewards
    • No minimum credit score required
    • No annual fee
    • Can qualify to have security deposit returned
    • Minimum deposit amount
    • Foreign transaction fee
    • A minimum security deposit of $200 (maximum of $5,000) is required to open this account.
    • Earn 3% cash back in the category of your choice, automatic 2% at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases) and unlimited 1% on all other purchases.
    • No annual fee and no expiration on rewards.
    • Contactless Cards - The security of a chip card, with the convenience of a tap.

U.S. Bank Secured Visa® Card

Great for: High secured credit limit

U.S. Bank Secured Visa® Card
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Fair/New to Credit Under(669)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

28.74% (Variable)

Rewards

N/A

Annual Fee

$0

Welcome Offer

N/A

  • This U.S. Bank secured card can help you build or rebuild credit with perks like no annual fee, free credit score monitoring, and the option to choose your own credit limit (from $300 to $5,000). Best of all, U.S. Bank keeps track of your progress and you'll be reviewed for the chance to upgrade to an unsecured card -- and get your security deposit back.

    • Flexible approval requirements
    • No annual fee
    • Upgrades to unsecured credit card
    • Free credit score monitoring
    • Flexible payment dates
    • Large minimum security deposit
    • No rewards
    • Foreign transaction fee
    • Credit limit ranges from $300-$5,000 based on deposit.
    • The deposit is put in an FDIC-insured savings account that earns interest and won't be touched as long as your account remains open and in good standing.
    • Car rental insurance available at no additional cost if you charge the car rental on your card and decline rental company's collision damage waiver option.
    • Free TransUnion® Credit Score.
    • You are not responsible for unauthorized transactions if your U.S. Bank Secured Visa Card is ever lost or stolen.
The U.S. Bank Secured Visa® Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

OpenSky® Secured Visa® Credit Card

Great for: No credit check

Read Review
OpenSky® Secured Visa® Credit Card
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: New/Rebuilding Under(579)
Read Review
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

New/Rebuilding Under(579)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

25.64%, variable

Rewards

N/A

Annual Fee

$35

Welcome Offer

N/A

  • A good option for new to credit applicants. The fact that there's no credit check could justify the annual fee for some cardholders Read Full Review

    • No credit check
    • Flexible credit limit
    • Reports payments to all three credit bureaus
    • Annual fee
    • No rewards
    • Minimum deposit amount
    • No credit check is great for building credit
    • $35 annual fee
    • $200 minimum security deposit

U.S. Bank Altitude Go Visa Secured Card

Great for: Dining and gas

Read Review
U.S. Bank Altitude Go Visa Secured Card
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Credit Score: Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.
Recommended Credit Score required for this offer is: Fair/New to Credit Under(669)
Read Review
Credit Score Circle with letter I in it. Falling within this credit range does not guarantee approval by the issuer. An application must be submitted to the issuer for a potential approval decision. There are different types of credit scores and creditors use a variety of credit scores to make lending decisions.

Fair/New to Credit Under(669)

Intro APR

Purchases: N/A

Balance Transfers: N/A

Regular APR

29.74%, variable

Rewards Circle with letter I in it. 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 on streaming services, 1x point per dollar on other purchases

1x - 4x points, $15 annual streaming credit

Annual Fee

$0

Welcome Offer

N/A

  • A refreshing, great pick for people looking to build credit and earn rewards at the same time.

    • Rewards points on purchases
    • Annual streaming credit
    • No annual fee
    • Can graduate to unsecured card
    • Minimum deposit
    • No new cardholder bonus
    • Earn 4X points on takeout, food delivery and dining
    • Earn 2X points at grocery stores, grocery delivery, gas stations and on streaming services (excludes discount stores/supercenters and wholesale clubs)
    • $15 credit for annual streaming service purchases such as Netflix and Spotify
    • 1X point per $1 on all other eligible purchases
    • Points never expire
U.S. Bank Altitude Go Visa Secured Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

How to choose the best secured credit card

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.

Overview of the best secured credit cards

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 full 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 full 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 full 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 full 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 full 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 on streaming services, 1x point per dollar on other purchases. Read full review.

What is a secured credit card?

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.

When is a secured credit card a good idea?

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.
Using a secured credit card to build credit

Secured credit cards are an excellent tool for building credit, as long as you use them properly. Make sure you understand how to increase your credit score before diving into the world of secured credit cards.

Pros and cons of secured credit cards

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.

Secured credit card alternatives

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.

Compare the best secured cards

The Picks
Card Rating Great For
Graphic of Discover it® Secured Credit Card
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For:

Cash back
Graphic of Capital One Quicksilver Secured Cash Rewards Credit Card
Rating image, 5.00 out of 5 stars.
5.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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Great For:

Unlimited cash back
Graphic of Bank of America® Customized Cash Rewards Secured credit card
Rating image, 4.50 out of 5 stars.
4.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
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= Poor
Great For:

Secured credit card with cash back
U.S. Bank Secured Visa® Card
Graphic of U.S. Bank Secured Visa® Card
Rating image, 4.00 out of 5 stars.
4.00/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
 = Best
= Excellent
= Good
= Fair
= Poor
Great For:

High secured credit limit
Graphic of OpenSky® Secured Visa® Credit Card
Rating image, 3.50 out of 5 stars.
3.50/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Great For:

No credit check
Graphic of U.S. Bank Altitude Go Visa Secured Card
Rating image, 4.75 out of 5 stars.
4.75/5 Circle with letter I in it. Our ratings are based on a 5 star scale. 5 stars equals Best. 4 stars equals Excellent. 3 stars equals Good. 2 stars equals Fair. 1 star equals Poor. We want your money to work harder for you. Which is why our ratings are biased toward offers that deliver versatility while cutting out-of-pocket costs.
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= Excellent
= Good
= Fair
= Poor
Great For:

Dining and gas
The U.S. Bank Secured Visa® Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.
U.S. Bank Altitude Go Visa Secured Card is unavailable on Motley Fool Money. All information was collected independently and not reviewed for accuracy or provided by the credit card issuer. Some items may be out of date.

Our Secured Credit Cards Methodology

At Motley Fool Money, we rate secured credit cards on a five-star scale (1 = poor, 5 = best). Our rating criteria includes security deposit requirements, annual fees, and perks like credit building tools.

Our highest-rated secured credit cards have:

  • Low security deposits
  • Low-to-no annual fees
  • Ability to graduate to an unsecured card
  • Perks like rewards, credit building tools, and no credit checks

We combine these factors with an evaluation of brand reputation and customer satisfaction to ensure you're getting the best secured credit card recommendations. Our aim is to maintain a balanced best-of list featuring top-scoring secured cards from reputable brands.

Ordering within lists is influenced by advertiser compensation, including featured placements at the top of a given list, but our product recommendations are NEVER influenced by advertisers. Learn more about how Motley Fool Money rates credit cards.

FAQs

  • Secured credit cards are guaranteed with a refundable deposit that acts as collateral. The security deposit that you make will usually be equal to the credit limit that you have. You'll be able to use your card to spend up to your credit limit. As you make payments on your card, it will be reported to the credit bureaus. Secured credit cards can help you build credit and raise your score.

  • There are several situations where getting a secured credit card might be a good idea. If you want to build credit from scratch, you have bad credit that you want to rebuild, you want to improve your score without ending up in debt, or if you can't qualify for an unsecured credit card, a secured credit card might be the type of card for you.

  • Make sure that you use the card regularly, but only buy what you can afford to pay off. Using your card for small, regular purchases like gas is a great idea. Every month, pay off your card in full and on time. Over time, your actions will be reported to the credit bureaus and will be shown on our credit report. If possible, avoid having a balance of more than 30% of your card's limit at any given time, even if you pay off the balance in full each month.

  • Look for a card with no annual fee and low security deposit. If the card also offers free credit score tools, this can be beneficial so that you can monitor your credit progress. The best secured credit cards also offer the ability to earn rewards. While this is a nice added feature, not all secured cards offer rewards.

  • If you can get approved for a regular credit card that doesn't charge a high annual fee, that will probably be a better option for your first credit card, as you won't need to pay a security deposit. But if you've been rejected for several traditional credit cards, try applying for a secured credit card. You can often graduate to an unsecured card later on.