The Best Secured Credit Cards

Secured credit cards have a bad reputation, and most of these products deserve it. Too often, the companies that offer secured cards do so to prey on those with poor or little credit history by charging exorbitant interest rates and outrageous fees. But using the right product from a reputable institution, holders of secured cards can repair or build their credit while enjoying many of the benefits of standard credit cards that they might not qualify for. (See also: How to Pick the Best Secured Credit Card to Repair Your Credit)

How a Secured Card Works

Standard credit cards are not secured by any property or deposits that can be repossessed in case of default. Therefore, applicants for these unsecured loans must first be able to show banks a strong credit history. On the other hand, almost any applicant will qualify for a secured credit card. With a secured card, the cardholder must first pay a security deposit that protects the bank against the risk of default. In all other ways, a secured card operates just like a standard credit card. Cardholders receive monthly bills that they must pay on time or incur interest and penalties. At the same time, banks will report payment information to the credit bureaus, allowing cardholders to build their credit history.

What to Look for in a Secured Card

Your first priority in shopping for a secured card will be to stick with a reputable bank and avoid the numerous products with high interest rates and unreasonable fees. Shoppers should look for a card with a low annual fee and perhaps one that might earn interest on their deposit. Finally, applicants should be aware that not all banks guarantee acceptance, so those with outstanding liens or a recent bankruptcy will not qualify for some of these cards.

Top Secured Credit Cards

These are some of the top secured credit cards currently available.

Capital One® Secured Mastercard®

The Capital One® Secured Mastercard® is the best secured credit card available — sign up now! This is one of the few cards that may extend you a credit line in excess of your deposit. If you make a security deposit of $49, $99, or $200, you will be able to get an initial $200 credit line, determined based on your creditworthiness. This card’s standard interest rate is 24.99% variable APR. Like all Capital One cards, there are no foreign transaction fees. This card also comes benefits like auto rental insurance, travel accident insurance, and price protection. The best part — there is no annual fee.

Click here to learn more and apply for the Capital One® Secured Mastercard® today!

Discover it® Secured Card – No Annual Fee

If you are in the process of rebuilding your credit, you should consider the Discover it® Secured Card – No Annual Fee. This card awards 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. Discover will also match the cash back you earn at the end of your first year as a new cardmember. This card requires a security deposit (minimum $200), which will be the credit line on your card. Your account will be reviewed at 8 months, and you may qualify to get your security deposit back while you continue using the card. This card also reports to the three major credit bureaus so you can build or rebuild your credit. There is an introductory APR of 10.99% on balance transfers for six months from the date of transfer. The variable APR after the introductory period and for purchases is 24.49%. There is no annual fee or foreign transaction fee for this card. See rates and fees.

Click here to learn more and apply for the Discover it® Secured Card – No Annual Fee today!

OpenSky Secured Visa Credit Card

With an 18.39% variable APR and $35 annual fee, the OpenSky® Secured Visa® Credit Card is a strong contender on this list. Additionally, you may even get approved for a credit line increase up to $5,000 at any time. There’s no credit check so you don’t need to worry about an inquiry affecting your score, or even getting declined because of it. Choose your credit line as low as $200 up to $3000, secured by a full-refundable security deposit.

Click here to learn more and apply for the OpenSky® Secured Visa® Credit Card today!

USAA Secured Card® American Express® Card

For military members and their family, the USAA Secured Card® American Express® Card is an attractive option. Your deposit is put into a 2-year CD to earn interest, so your deposit is guaranteed to grow. The variable APR is between 11.15%-21.15% depending on your credit worthiness. There are no extra fees and no foreign transaction fee. This is also one of the few secured cards that come with extra benefits like rental car insurance and extended warranty. It also includes free CreditCheck Monitoring with Experian for six months. The annual fee is $35.

Click here to learn more and apply for the USAA Secured Card® American Express® Card today!

Citi® Secured Mastercard®

The Citi® Secured Mastercard® from our partner Citi is another good option to help you build your credit history if you have limited or no credit. Your credit line is equal to your security deposit; the minimum is $200, but you can deposit up to $2,500. In addition to monthly notifications to the credit bureaus, this card can help you stay on track with Auto Pay, online Bill Pay, and alerts. The variable APR is 23.99%* and there is no annual fee.

Click here to learn more and apply for the Citi® Secured Mastercard® today!

primor® Secured Visa® Gold Card

With the primor® Secured Visa® Gold Card, your credit limit is equal to the amount of your savings (which accrues interest, but does not compound) — anywhere from $200 to $5,000. The annual fee is $49 and the APR is 9.99% fixed. This is the lowest APR you’ll find on a secured card, so it’s great for those who need to keep a balance on their card. However, this card also has a lot of fees for various activity on your account. (They also have a Classic version with a $39 annual fee and 13.99% fixed APR.)

Click here to learn more and apply for the primor® Secured Visa® Gold Card.

Capital One® Platinum Credit Card (Unsecured)

The Capital One® Platinum Credit Card isn’t a secured credit card — you don’t have to deposit money in order to get credit. It’s a standard unsecured credit card that’s offered to those with less than stellar credit. You may also get access to a higher credit line if you make your first 5 monthly payments on time. The variable APR is 24.99% with no annual fee, no balance transfer fee, and no foreign transaction fee.

Click here to learn more and apply for the Capital One® Platinum Credit Card today!

When You Should Get a Secured Card

Those who have poor credit or no credit history may be tempted to just wash their hands of the entire credit card business. Unfortunately, that would be a mistake. Obtaining a secured card and making on-time payments is a critical way to repair or build one’s credit. Whether it is right or wrong, companies today use credit scores for any loan application, background checks when hiring, and for setting rates for services such as car insurance. Furthermore, travelers will find it difficult or impossible to reserve a hotel room or rent a car without holding a credit card. (See also: How to Rebuild Your Credit)