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Best secured credit cards for December 2024
After comparing dozens of different secured credit cards, our top recommendations include the Discover it® Secured Credit Card and Capital One Quicksilver Secured Cash Rewards Credit Card because of their earning potential and opportunities to upgrade to unsecured cards.
Best secured credit cards for December 2024
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Cash-back
- Purchase APR29.99% variable
- Recommended credit scoreExcellent, Good
- Rewards rate
- 5% unlimited cash back on hotels and rental cars booked through Capital One Travel
- 1.5% unlimited cash back on every purchase, everywhere
- Benefits
- No annual or hidden fees; see if you're approved in seconds
- Earn back your $200 security deposit as a statement credit when you follow card best use practices, such as making payments on time
- Be automatically considered for a higher credit in six months with no additional deposit
Upgrade options: You may be automatically considered for a higher credit line in as little as 6 months. With responsible use, you could earn your security deposit back and upgrade to an unsecured Quicksilver card.
Why we like this card for simple cash back: 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
- Annual fee$0
- Purchase APR29.99% variable
- Recommended credit scoreNo credit history required
- Benefits
- No annual or hidden fees; see if you're approved in seconds
- Earn back your security deposit as a statement credit when you follow best practices, such as making payments on time
- Be automatically considered for a higher credit in six months with no additional deposit
The Capital One Platinum Secured has a $0 annual fee and only requires a minimum $49 refundable security deposit. Considering most secured cards require at least a $200 or $300 deposit, this could be a good option if you want a smaller deposit amount.
By making purchases with your card and then making on-time payments, you could help build your credit and upgrade to an unsecured Platinum card.
Read our full review of the Capital One Platinum Secured Credit Card
- Annual fee$0
- Welcome offerDiscover will automatically match all the cash back you’ve earned at the end of your first year, with no minimum spending requirement or maximum rewards cap
- Card type(s)Secured, Credit-builder
- Purchase APR28.24% variable
- Recommended credit scoreNo credit score required
- Rewards rate
- 2% cash back at gas stations and restaurants up to $1,000 quarterly (1% after that)
- 1% cash back on all other purchases
- Benefits
- No credit score required to apply
- No annual fee
- After 7 months, Discover will begin automatic monthly account reviews to see if you qualify to upgrade to an unsecured card and get your deposit back
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 this card for earning rewards: If you compare secured vs. unsecured cards, secured cards generally have worse benefits than unsecured options. However, the Discover it Secured Credit Card provides excellent reward opportunities.
That includes receiving 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 would match that and you’d receive $400 in total cash back.
Read our full review of the Discover it Secured Card
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Cash-back
- Purchase APR29.24% variable
- Rewards rate
- 3% cash back* in the category of your choice: gas and EV charging stations; online shopping, including cable, internet, phone plans and streaming; dining; travel; drug stores and pharmacies; or home improvement and furnishings
- 2% cash back* at grocery stores and wholesale clubs
- 1% cash back on all other purchases
- *Earn 3% and 2% cash back on the first $2,500 in combined purchases each quarter in each tier, then earn 1%
- Benefits
- Helps build your credit while earning 3% cash back in the category of your choice
- You can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- Access to credit education on topics like using credit cards responsibly, budgeting and more
- Set your own credit limit by putting down a security deposit of $200 to $5,000
Upgrade options: You may qualify to have your security deposit returned based on periodic Bank of America account reviews
Why we like this card for customized rewards: 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.
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Purchase APR18.00% variable
- Rewards rate1x points on all eligible purchases
- Benefits
- Submit a security deposit of $200 to $5,000, which acts as your credit limit
- You could be eligible for a credit limit increase after 3 months and potentially upgrade to the CashRewards unsecured card after 6 months
Upgrade options: At three months, you could be eligible for an automatic line increase. Navy Federal will start monthly reviews after six months to see if you’re eligible for an upgrade to a Navy Federal cashRewards Credit Card.
Why we like this card for military members: We think the nRewards Secured Credit Card is a great card for building or rebuilding credit because it doesn’t have an annual fee, earns rewards, and reports activity to the major credit bureaus.
However, you have to be a Navy Federal Credit Union member to apply for the card. To join, you or a family member must typically have ties to the U.S. armed forces, Department of Defense, or National Guard. That could mean being an active duty, retired, or veteran military member, or working with the Department of Defense.
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Rewards
- Purchase APR29.99% variable
- Rewards rate
- 4x points on dining, takeout, and restaurant delivery
- 2x points at eligible gas stations and EV charging stations
- 2x points at eligible grocery stores and on streaming services
- 1x points on all other purchases
- Benefits
- Submit a security deposit of $300 to $5,000, which acts as your credit limit
- Get a $15 annual streaming credit for services like Netflix or Spotify
- Choose your payment due date
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 this card for dining rewards: Earning 4x points on dining, takeout, and restaurant delivery is an excellent rewards rate for any credit card, let alone a secured card. Most cards with a dining spending category don’t offer over a 3x return, making the U.S. Bank Altitude Go Secured a top credit card for restaurants.
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Cash-back
- Purchase APR29.24% variable
- Rewards rate1.5% cash back on all purchases
- Benefits
- Use the card to establish, strengthen, or even rebuild your credit.
- There's no limit to the amount of cash back you can earn, and rewards don't expire as long as your account remains open
- You can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- Set your own credit limit by putting down a security deposit of $200 to $5,000
Upgrade options: You may qualify to have your security deposit returned based on periodic Bank of America account reviews
Why we like this card for simple rewards: The Bank of America Unlimited Cash Rewards Secured Credit Card offers unlimited 1.5% cash back on all purchases. There are no spending categories to track: just a flat, straightforward rewards rate. If you prefer using one card for everything, this could be the one for you.
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Recommended credit scoreNo credit history required
- Rewards rateNone
- Benefits
- Chime reports your activity to all 3 major credit bureaus
- No annual or monthly fees
- No credit checks necessary to apply and no minimum security deposit required
Upgrade options: N/A
Why we like this card: The Chime Secured Credit Builder Card‡ is unique because it’s a secured credit card that doesn’t require a minimum security deposit. Instead, you must have a Chime Checking Account to apply and any money you move from your checking account to your secured account acts as your available spending money.
The Chime Secured Credit Builder Card also doesn’t charge interest and there’s no credit check to apply. Most secured credit cards require a hard credit check, which is counterintuitive, considering you likely want one of these cards to help build your credit history. With the Chime Secured Credit Builder Card, there’s no worry about a hard inquiry.
Read our full review of the Chime Credit Builder Secured card
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Purchase APR29.99% variable
- Rewards rate
- 5% cash back on two categories of your choice each quarter, such as home utilities, electronic stores, or cell phone providers
- 2% cash back on one everyday category, such as gas and EV charging stations, grocery stores, or restaurants
- 1% cash back on all other purchases
- Benefits
- Submit a security deposit of $300 to $5,000, which acts as your credit limit
- Choose your payment due date
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 this card for elevated rewards: 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.
More top secured credit cards to consider
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Purchase APR26.24% variable
- Rewards rateNone
- Benefits
- You can access your FICO® Score updated monthly for free
- Access to credit education on topics like using credit cards responsibly, budgeting, and more
- A minimum security deposit of $200 (maximum of $5,000) is required to open this account.
The BankAmericard Secured Credit Card is a no-frills card that could help you build your credit and qualify for better credit opportunities. It doesn’t earn rewards but has a $0 annual fee.
You must put down a minimum security deposit of $200 (up to a maximum of $5,000). Bank of America will periodically review your account to determine if you qualify to receive your security deposit back.
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Purchase APR27.74% variable
- Rewards rateNone
- Benefits
- No annual fee
- $0 liability on unauthorized charges
- $200 minimum security deposit
The Citi Secured Mastercard makes sense if you want to establish some credit history. It works everywhere Mastercard credit cards are accepted, so it’s easy to use. In addition, it has a $0 annual fee and you only need a $200 minimum security deposit (up to a maximum of $2,500).
- Annual fee$0
- Welcome offerNone
- Card type(s)Secured, Credit-builder
- Purchase APR29.24% variable
- Recommended credit scoreNo credit score required
- Rewards rate
- Start with a security deposit of $300 to $5,000
- Choose your payment date
- Build your credit
- Benefits
- No annual fee
- Zero fraud liability
- Access your credit score anytime
The U.S. Bank Secured Visa is a simple credit card with a $0 annual fee and no rewards rate. Like most secured cards, your credit limit is tied to a security deposit you have to put down if you’re approved for the card.
U.S. Bank reports your credit activity to the three major credit bureaus, making this card a great option for building your credit.
- Annual fee$0
- Welcome offerNone
- Card type(s)Business, Secured, Credit-builder
- Purchase APR28.49% variable
- Rewards rate1.5% cash back on every purchase (no annual cap; rewards don't expire as long as your account remains open)
- Benefits
- Choose how to redeem your cash rewards: A deposit into your Bank of America checking or savings account, a card statement credit, or a check
- Build up your credit history
- Minimum $1,000 security deposit
This card could be a good option to help build your business credit history. It has a $0 annual fee and provides 1.5% cash back on all eligible purchases.
Note that this card requires a $1,000 minimum security deposit, which is a bit high but makes sense for a business card.
How do secured credit cards work?
Secured credit cards are designed to help users build their credit. They require a cash security deposit that typically 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 more strict 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 just about anywhere credit cards are accepted, and responsible usage can help build your credit history. 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 you and your personal finance goals:
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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.
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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).
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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.
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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.
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Fees: Keep an eye out for cards that charge annual fees on top of requiring a security deposit. And if you travel internationally, consider cards without foreign transaction fees.
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Upgrade options: Many secured credit cards provide a way to upgrade to an unsecured card later. That often means you would receive your security deposit back after enough time of responsible card usage.
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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
Frequently asked questions (FAQs) for secured credit cards
1. Do secured credit cards build credit?
Responsibly using a secured credit card can help build your credit history, which could allow you to qualify for unsecured cards and other credit products. In many cases, it’s possible to graduate to an unsecured card from the same card issuer if you use your card and make on-time payments.
2. What is the minimum deposit required for a secured credit card?
A secured credit card typically requires a minimum security deposit of around $200 to $300. The maximum amount depends on the card but could go up to $3,000 or more. Your security deposit often acts as your credit limit, so a deposit of $1,000 would give you a $1,000 credit limit.
3. Do secured cards build credit faster?
Secured cards don’t necessarily build your credit faster than unsecured options, but you can still see significant improvement over a relatively short period of time. If you focus on different credit score factors, such as maintaining a positive payment history, you might see changes to your credit score in as little as 30 to 45 days.
Our methodology
We researched many secured card options from different issuers to find the best secured credit cards. We did not include all available options from every financial institution.
With our research, we compiled a list of dozens of secured credit cards and created a rubric to rate each card based on various factors. Some factors we used include ongoing APR, annual fees, welcome offers, rewards, security features, and more.
We ended up with a final list of cards that scored well using our rating system and aligned with our expert opinion, experience, and research.
This article was edited by Alicia Hahn
*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.
