Methodology
To generate our list of the best secured credits, Forbes Advisor regularly reviews the secured credit cards in our database and compares them on a variety of factors, including:
Forbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case (the card rating you see on a specific “Best” list). The rating for each card changes on different “Best” lists according to how a person looking for a card in that category may value certain card features.
For instance, a card that might be considered mediocre on a list of rewards cards could be the top card on a list of rewards cards with no annual fee. That’s because the card might offer limited features compared to other rewards cards, but after we remove cards that charge an annual fee, it’s the best card that remains.
To learn more about our rating and review methodology and editorial process, check out our guide on how Forbes Advisor rates credit cards.
Who Can Get Approved for a Secured Card?
Secured credit cards can be some of the easiest types of credit to get approved for since the credit line is backed by your collateral deposit. If you have poor or limited credit history, you’ll likely find that a secured card is a great best place to start building a stronger profile.
How To Choose a Secured Credit Card
The right secured card for you will be different from the right card for someone else. Consider the following when deciding which one best fits your needs.
- Know your credit score. Don’t assume a secured credit card is the only way to go. There are good unsecured options for fair credit you could potentially qualify for. You can check your credit score for free either via your bank’s app or with an online credit core monitoring service.
- Understand the opening deposit requirements. Secured cards require a cash deposit as collateral, typically equal to your credit limit. Credit cards with low security deposits may be more appealing, but you’ll also bump against the limit fairly quickly. Choose an opening deposit amount that matches your budget.
- Consider the rates and fees. Look for cards with low or no annual fees to minimize costs. Secured credit cards with no credit check often charge a series of fees that can be expensive and eat away at your available credit.
- Consider additional features and the fine print. Many of the best secured cards to build credit earn rewards or come with other perks, including a path to converting your account to an unsecured card.
If your goal is to build a stronger credit profile, make sure the secured card you choose reports to the three major credit bureaus. That way your responsible use of the card is tracked and you have a better chance at an improved credit score and more opportunities for new unsecured cards.
– Jerod Morales, Credit Cards Editor
How To Get a Secured Credit Card
Applying for a secured credit card is nearly the same process as applying for any other credit card. Typically, you’ll be asked to provide the following information on your application:
- First and last name
- Email address
- Phone number
- Birth date
- Home address
- Social Security number or individual taxpayer identification number (ITIN)
- Citizenship status
- Employment details
- Housing costs
- Income and employment information
Unlike the application for an unsecured card, you’ll also typically need to link your bank account to provide the security deposit.
How To Use a Secured Credit Card
Building credit with a secured card means using it responsibly. Payment history is the most important factor that goes into determining your FICO Score, accounting for 35% of your overall score, so making every payment on time with your secured card is key.
Credit utilization is the next-largest component of your FICO Score, accounting for 30% of the calculation. This measures how much of your available credit you’re using. Someone who is always at the max of their card’s limit is riskier to lenders than someone who keeps their balances low.
Be patient as building good credit takes time. A new secured credit card could take up to two months to appear on your credit report.
Secured Credit Cards Alternatives
A secured card may not be the best fit for everyone. Here are some other options to consider.
Unsecured Cards for Bad Credit
If you have limited, fair or poor credit, which is generally defined as 669 and below on the FICO scoring system, options exist, but the terms may not be in your best financial interest. Secured cards generally have lower fees and/or interest rates and more benefits.
However, one unsecured option to consider is the Capital One QuicksilverOne Cash Rewards Credit Card, which is available to those with Average, Fair, Limited credit. Although it charges a $39 annual fee (rates & fees), the card also earns 1.5% cash back on every purchase and 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel, making it a decent option for those in this credit range.
If you aren’t sure your credit is up to snuff for this card, you can use Capital One’s preapproval tool to check it out without going through a credit check.
Credit-Builder Loans
Credit-builder loans offer a helping hand to build credit without using a credit card. With a credit-builder loan, you receive a small loan from the lender, but instead of receiving the money or a line of credit, the money is deposited into a CD or savings account. You make monthly payments plus interest to repay that loan and your on-time payments can help you build credit. Once the loan is paid off, you’ll receive your deposit back.
Prepaid Debit Cards
Although a prepaid debit card won’t help you build credit, it is an option when you need a payment card. You can load the prepaid card up with cash. But again, this won’t help you build credit. You also risk losing your funds if your prepaid card is lost or stolen.
Personal Loans
A personal loan can provide you with cash that you pay back through monthly installments at a fixed rate. Although you can build credit with a personal loan, getting approved for one with poor or limited credit can be difficult.
Evaluate Credit Cards Side By Side
Ask an expert
Are Secured Credit Cards Worth It?
Laura Adams
Credit Cards Expert
Becky Pokora
Credit Cards Writer
Harlan Vaughn
Credit Card Expert
A secured credit card is an excellent tool for building or improving your credit history when the issuer reports payment history to the nationwide credit bureaus. You might want to apply for one if you’re building credit from scratch or you’re rebuilding your credit after financial hardship. In some cases, the issuer may convert your account to an unsecured credit card after a period of timely payments.
Credit Cards Expert
Secured credit cards may have more lenient approval standards, making them a good choice for someone without a credit history or with poor credit. They generally also report to all three credit bureaus, so responsible usage can help build your credit score.
Credit Cards Writer
Credit cards, when used responsibly, can improve your credit profile. If you want to build your credit but don’t want the option to potentially overspend, a secured credit card could be an important stepping stone.
Credit Card Expert
Frequently Asked Questions (FAQs)
How do secured credit cards work?
A secured card works like any other credit card, with one notable difference—your credit limit is based on the amount of your security deposit. These deposits typically range from $200 up to $5,000 and act as collateral for the issuer. If you default on a balance, the card issuer will keep your deposit to cover what you owe.
Does a secured credit card have an annual fee?
Some secured credit cards charge annual fees, although most of the best ones do not. Before applying, check a secured credit card’s terms and conditions to see if the card you’re considering has an annual fee.
Can I get my deposit back on a secured credit card?
You can get your deposit back on a secured credit card in two scenarios: You’ve demonstrated good payment behavior and the issuer has decided to convert your account to an unsecured card, or you close your secured account and don’t owe any money to the issuer.
How much will a secured credit card raise my score?
No secured card can guarantee a specific score improvement because credit scores are based on a combination of financial factors, so there’s. The amount your score will improve after a consistent pattern of good payment behavior will depend on your financial situation and other factors affecting your score. However, many cards offer free monthly FICO Score tracking so you can monitor your progress.
Am I guaranteed approval for a secured credit card?
There is no guaranteed approval for any secured credit card, but you will have a better chance of receiving approval for a secured card than an unsecured credit card since you are securing the line of credit with a deposit.
