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A secured credit card can help you build or rebuild your credit if few other options are available. These cards work the same as traditional credit cards but require you to put down a security deposit.

Best secured credit cards for 2025

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Upgrade options: You may be automatically considered for a higher credit line in as little as six months. With responsible use, such as not making late payments, you could earn your security deposit back and upgrade to an unsecured Quicksilver card.

Why we like it: The Capital One Quicksilver Secured makes it easy to earn cash-back rewards. You don’t have to worry about different spending categories or earning rates; it’s simply 1.5% unlimited cash back on all your eligible purchases.

Read our full Capital One Quicksilver Secured review

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Upgrade options: With responsible use, you can upgrade to a standard, unsecured Platinum card and receive your security deposit back.

Why we like it: The Capital One Platinum Secured only requires a minimum $49 refundable security deposit, making it much more accessible if you can’t or don’t want to put down a large deposit. Capital One will also review your account every six months to see if you're eligible for a higher credit limit.

Read our full review of the Capital One Platinum Secured Credit Card

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Upgrade options: N/A

Why we like it: With a minimum deposit of $100 and no minimum credit requirements to meet, the secured Self Visa Card is easily attainable if you hope to improve your credit. The company reports your activity to all three credit bureaus, so with regular on-time payments and low credit utilization, you could be on your way to better credit. Unlike some cards on this list, however, there is a small annual fee — though new users can have that fee waived for the first year.

Read our full review of the secured Self Visa Card

¹ The secured Self Visa® Credit Card is issued by Lead Bank or First Century Bank, N.A., each Member FDIC.

² Credit Builder Accounts & Certificates of Deposit made/held by Lead Bank, Sunrise Banks, N.A., or First Century Bank, N.A., each Member FDIC. Subject to credit approval.

*$0 annual fee for the first year only. $25 annual fee after. 28.24% Variable APR. Limited time offer.

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Upgrade options: Discover starts automatic monthly account reviews after seven months to see if you’re eligible to upgrade to an unsecured credit card and get your security deposit back.

Why we like it: Most secured cards don’t provide welcome offers, but the Discover it Secured Credit Card offers a dollar-for-dollar cash-back match at the end of your first year. For example, if you earned $200 cash back in your first year, Discover will match that and you’d receive $400 in total cash back.

Read our full Discover it Secured Credit Card review

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Upgrade options: You may automatically graduate to a U.S. Bank Altitude Go Visa Signature Card and have your security deposit returned with responsible card usage.

Why we like it: The U.S. Bank Altitude Go Secured reward categories align well with common expenses, including dining, grocery stores, gas stations, and streaming services. Even better, you can earn up to 4x points, which is an excellent rate for any rewards card, let alone a secured card.

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Upgrade options: Bank of America will periodically review your account to see if you qualify to have your deposit returned.

Why we like it: Unlike most credit cards, the Bank of America Customized Cash Rewards Secured allows you to customize how you earn rewards. You can choose a different category each month, helping you earn more rewards based on your monthly spending.

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Upgrade options: You may automatically graduate to a U.S. Bank Cash+® Visa Signature® Card and have your security deposit returned with responsible card usage.

Why we like it: The U.S. Bank Cash+ Secured provides a high rewards rate in multiple categories, including 5% cash back on the first $2,000 each quarter in two chosen categories. You could earn $100 cash back each quarter if you spend up to that limit.

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Other secured cards to consider

Read our full Chime® Credit Builder Secured Visa® Credit Card

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How do secured credit cards work?

Secured credit cards are designed to help users build their credit. They don’t require good credit to qualify, but typically require a cash security deposit that acts as your credit limit. With most secured cards, that means if you were to put down a $500 deposit, you would have a $500 credit limit.

Unsecured cards are more appealing but often have stricter eligibility requirements. Getting approved for a secured credit card is still possible if you can’t qualify for a traditional card because of a limited, poor, or bad credit history.

In most cases, you can still use a secured card anywhere credit cards are accepted, and responsible usage can help build your credit history. That means keeping a positive payment history by always making payments by their due date.

You could then upgrade to an unsecured credit card (if the credit card issuer offers this option) or apply for a regular credit card from another issuer.

Pros and cons of secured credit cards

How to choose a secured credit card

Consider these factors to find the secured credit card that makes the most sense for your personal finance goals:

• Eligibility requirements: Generally, secured cards don’t require an established credit history for approval. However, many card issuers will still do a hard credit inquiry to determine your creditworthiness. If you want to avoid that, consider cards like the Chime Secured Credit Builder that don’t require a credit check.

• Credit reporting: For most people, the primary reason to get a secured credit card is to build credit. If you want to build your credit effectively, make sure the card issuer reports activity to the three major credit bureaus (Experian, Equifax, and TransUnion).

• Minimum security deposit: The minimum required security deposit on most secured cards is around $200 to $300. If you’re worried about putting down a large cash deposit, some cards, like the Capital One Platinum Secured, have lower deposit requirements. Just be aware that a low credit limit could more easily result in high credit utilization.

• Maximum security deposit: Your security deposit amount typically acts as your credit limit. Consider cards with higher maximum security deposits if you want a higher credit limit.

• Fees: Watch for cards that charge annual fees on top of requiring a security deposit. And if you travel internationally, consider cards without foreign transaction fees.

• Upgrade options: Many secured credit cards provide a way to upgrade to an unsecured card later. That often means you receive your security deposit back after enough responsible card usage.

• Benefits and rewards program: Rewards and cardholder perks are likely an afterthought to building credit history, but they should still be considered. After all, a rewards credit card could still help you build credit while also providing valuable points or cash back.

Read more: How to build credit without a credit card

Should I open a secured credit card?

Secured cards are some of the best credit cards available for credit building if you don’t qualify for better options. You can use secured cards like traditional credit cards to make everyday purchases, and as long as the activity is reported to the major credit bureaus and you make on-time payments, you'll likely see your credit score improve over time.

You likely don’t need a secured credit card if you already have an unsecured credit card or can qualify for one. Both secured and unsecured cards can help you build your credit history, but you don’t have to put down a security deposit on an unsecured card.

Keep in mind that secured credit cards work the same as unsecured cards, meaning you often have interest rates to worry about. However, if you always pay off your balance on time, you’ll never have to pay credit card interest.

FAQs for secured credit cards

What is the best secured credit card?

Based on our rankings, some of the best secured credit cards include:

• Capital One Platinum Secured Credit Card

• Capital One Quicksilver Secured Cash Rewards Credit Card

• Discover it® Secured Credit Card

• Bank of America® Customized Cash Rewards Secured

• U.S. Bank Altitude Go® Secured Visa® Signature Card

Can I get a $1,000 secured credit card?

Many secured credit cards, including the Capital One Quicksilver Secured, offer up to a $1,000 credit limit or higher. Keep in mind that secured cards require a security deposit that acts as your credit line. That means you usually must put down a $1,000 security deposit to have a $1,000 credit line.

Can secured credit cards build credit?

Yes, secured credit cards can help you build credit if you use them to make purchases and then make on-time payments each billing cycle. However, be sure your credit card activity is reported to the major credit bureaus by your card issuer.

How does the security deposit work?

Secured credit cards require you to put down a security deposit to be eligible for approval. There’s typically a minimum deposit requirement, such as $200 or $300, and the amount you deposit acts as your credit line. Deposits can be held in a bank account, such as a checking account or savings account. You can often have your deposit returned if you close your account or graduate to an unsecured card.

What are two downsides of getting a secured credit card?

The biggest downside is that you have to put down a security deposit that acts as your credit limit. This ties up money that could be used elsewhere, such as investments or savings. Another downside is that secured cards tend to have fewer perks and benefits, which could include no rewards or welcome bonuses.

Our methodology

We researched credit cards from various financial institutions, including major credit card companies, credit unions, and other lenders, to find the best secured credit cards.

We included dozens of cards in a rubric that rated them according to their features and benefits, including security deposit requirements, annual fees, rewards, credit bureau reporting, and more. We did not include every available card, and omitted cards with minimal information available.

Our final list was determined by our rubric ratings, research, and expert opinion.

This article was edited by Alicia Hahn

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*No Minimum Security Deposit: 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.

**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 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.

†No Interest: 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.

‡The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., 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.

Editorial Disclosure: The information in this article has not been reviewed or approved by any advertiser. All opinions belong solely to Yahoo Finance and are not those of any other entity. The details on financial products, including card rates and fees, are accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information. This site doesn't include all currently available offers. Credit score alone does not guarantee or imply approval for any financial product.