Secured credit cards are a great way to build or improve your credit score. Unlike traditional credit cards, secured cards don’t require a credit check during the approval process. Instead, you provide a cash security deposit that acts as collateral for your card. This makes it easier for people with thin credit histories or low credit scores to get approved. If you’re looking to establish credit or get back on track financially, here are some of the best secured credit cards available in January 2024.
Best Secured Credit Cards Compared 2024
- Best for rebuilding credit: Capital One Platinum Secured Credit Card
- Best for increased credit line: Merrick Bank Double Your LineTM Secured VisaR
- Best for flexible credit line: Merrick Bank Secured Credit Card
- Best for quick approval: Applied Bank Secured Visa Gold Preferred Credit Card
- Best for credit education: The First Progress Platinum Elite Mastercard Secured Credit Card
- Best for no checking account requirement: OpenSky Secured Visa
- Best for cash advances: PREMIER Bankcard Secured
Our Recommendations for the Best Secured Credit Cards
Best for rebuilding credit: Capital One Platinum Secured Credit Card
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $49 – $1,000
Why we picked it: The Capital One Platinum Secured Credit Card has a low annual fee and multiple security deposit options, making it an excellent choice for rebuilding credit. Responsible use of this card and on-time payments can positively impact your credit score. Plus, after six months, Capital One may consider you for a higher credit line.
Best for cash back: Capital One Quicksilver Secured Cash Rewards Credit Card
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $200 – $3,000
Why we picked it: The Capital One Quicksilver Secured Cash Rewards Credit Card offers 1.5% cash back on all purchases with no limits. With a $200 deposit requirement and a reasonable annual fee, this card is perfect for earning rewards without breaking the bank.
Best for increased credit line: Merrick Bank Double Your LineTM Secured VisaR
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $200 – $3,000
Why we picked it: The Merrick Bank Double Your LineTM Secured VisaR allows you to double your credit line from $200 to $400 in just seven months if you make on-time payments. No additional deposits are required. This feature sets it apart from other secured cards and provides more flexibility for increasing your credit limit.
Best for flexible credit line: Merrick Bank Secured Credit Card
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $200 – $3,000
Why we picked it: The Merrick Bank Secured Credit Card offers a wide range of credit limits, allowing you to choose the amount that suits your needs. Whether you want a lower limit or a higher one, this card provides the flexibility to customize your credit line.
Best for quick approval: Applied Bank Secured Visa Gold Preferred Credit Card
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $200 – $1,000
Why we picked it: The Applied Bank Secured Visa Gold Preferred Credit Card provides quick approval, sometimes within 60 seconds, without a credit check. With a simple application process, this card is a great option for those who want fast access to a secured credit card.
Best for credit education: The First Progress Platinum Elite Mastercard Secured Credit Card
- Credit score needed: Poor/Limited/No Credit
- Deposit Range: $200 – $2,000
Why we picked it: The First Progress Platinum Elite Mastercard Secured Credit Card offers free credit education through their mobile app. This card is perfect for those who want to learn more about credit and track their progress while rebuilding their credit score.
Best for no checking account requirement: OpenSky Secured Visa Credit Card
- Credit score needed: credit_score_needed
- Regular APR: reg_apr,reg_apr_type
- Deposit Range: $200 – $3,000
Why we picked it: The OpenSky Secured Visa Credit Card is an excellent option for those who don’t have a checking account. You can fund your card using a money order or Western Union, making it accessible to a wider range of people.
Best for cash advances: PREMIER Bankcard Secured
Why we picked it: The PREMIER Bankcard Secured credit card allows cash advances, starting at 10% of your assigned credit limit and increasing to 50% after 90 days. This feature provides additional financial flexibility.
Our Methodology
We considered several important features to create this list of the best secured credit cards. We evaluated each card’s annual fee, prioritizing those with low or no annual fees. We also looked at the card’s APR to determine the best options for avoiding high interest rates. Additionally, we considered the application process and preferred cards with quick approval times and online applications.
Who Can Get Approved for a Secured Credit Card?
Getting approved for a secured credit card is much easier than for an unsecured card. Most secured card providers don’t even check your credit history during the approval process. Because your card is secured by a cash deposit, there is less risk for the issuer. This makes secured credit cards ideal for people with thin credit files or poor credit scores who want to improve their credit.
How to Select the Best Secured Credit Card for You
Choosing the best secured credit card depends on your specific needs. Consider these factors when making your selection:
- Do the options report to the major credit bureaus?
- What is the security deposit amount you’re comfortable with?
- Are there annual or recurring fees?
- Is there an opportunity to upgrade to a higher credit limit or an unsecured card?
- Are there late fees or a grace period for late payments?
Alternatives to Secured Credit Cards
While secured credit cards are an excellent option for building credit, they’re not the only choice available. Here are some alternatives to consider:
- Become an authorized user on a family member’s credit card.
- Get a cosigner for a regular credit card.
- Consider a secured loan if you need a lump sum of cash.
- Open a retail store card to establish credit.
- Explore credit-building tools like credit-building debit cards.
TIME Stamp: The Best Secured Credit Cards Help You Build Your Credit Score
Secured credit cards are a valuable tool for improving your financial standing. The cards listed here will report your payment history to the major credit bureaus, helping you build a positive credit record. By using your card responsibly and paying your bills on time, you can see a significant increase in your credit score within a few months.
Frequently Asked Questions (FAQs)
Should I get a secured credit card (pros and cons)?
Secured credit cards have both pros and cons to consider. Some advantages include easy approval, credit bureau reporting, lower APRs, fully refundable deposits, and the potential to upgrade to an unsecured card. However, the downsides include required security deposits, lower credit limits, limited rewards, and no guarantee for upgrades.
What is the average interest rate for secured credit cards?
As of July 2023, the average interest rate for secured credit cards is 22.37%. However, the exact APR will depend on the card issuer.
What’s the difference between secured and unsecured credit cards?
Secured credit cards require a cash deposit as collateral, while unsecured credit cards are approved based on an applicant’s credit score without a deposit requirement.
What’s the difference between secured and prepaid credit cards?
Prepaid credit cards require you to load money onto the card before using it, while secured credit cards allow you to borrow money from the card provider with a cash deposit as collateral.
Disclaimer: This article may contain affiliate links from which Personal Finances Blog receives compensation. The editorial content is not provided by any credit card issuer and does not reflect the views or endorsements of any credit card issuer.