What is the best secured credit card to rebuild credit with?

Question

You can build credit with a secured credit card in as little as 1 month, but it will take many months or even years to build a consistently good or excellent credit score. The length of time also depends on whether you’re building credit from nothing or rebuilding damaged credit. If you have no credit, you could see a good score after just a few months of paying on time. You’ll have a … read full answer VantageScore after 1 month and a FICO Score after 6. With bad credit, though, it will probably take 12-18 months of responsible use for you to move up to the fair credit range. Secured credit cards are great for building credit because they are easy to get and report to the credit bureaus just like unsecured cards.

But it's hard to give you an accurate estimate of how long it will take to build credit with a secured credit card without knowing the details of your situation. That’s where WalletHub can help. Just sign up for a free account, and we’ll give you a personalized credit analysis that will tell you what to improve and give you a better sense of how long it will take.

Here’s how long it takes to build credit with a secured credit card:

If you have no credit, it will take 1 month to get a VantageScore and 6 to get a FICO score. Depending on how responsibly you use your card, your first score could be anywhere from bad to good.

If you pay your bill on time and otherwise manage your finances responsibly, you can rebuild from a bad credit score (300-639) to a fair credit score (640-699) in approximately 12-18 months.

A good credit score based on limited information could easily fall due to an increase in credit utilization or a single missed payment. Building and then keeping a good or excellent credit score requires consistency over time. This is a project measured in years.

For people rebuilding credit, it will take 7-10 years for some negative information, like bankruptcies and late payments, to disappear from your credit report. But the older they are, the less impact they will have on your score.

If you’re looking to rebuild your credit, secured credit cards are the best way to do it. They’re easy to get and are indistinguishable from unsecured cards aside from the deposit requirement.

Rebuilding credit will take a while, so it’s best to get started as soon as possible. Some good behaviors to practice are always paying on time and using less than 30% of your available credit.

Checking your credit reports regularly for errors and disputing any you find is also important.

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Answer 1 · 2021-02-17 03:48:21

Christie Matherne, Credit Card Writer

@christie_matherne 02/17/21 This answer was first published on 02/03/21 and it was last updated on 02/17/21.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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The best secured credit card to rebuild credit is the Secured Mastercard® from Capital One because of its low deposit requirement and $0 annual fee. The deposit is $49, $99 or $200, depending on your credit standing, but you’re guaranteed a $200 credit limit.

Another one of the best secured credit cards to rebuild credit is the OpenSky® Secured Visa® Credit Card. It doesn’t even require a credit check when you apply, which makes it great for rebuilding really bad credit. Or, if you want to enjoy some perks while you rebuild, Discover it® Secured Credit Card is a rare secured card with rewards. You get 1 - 2% cash back on your purchases.

To be clear, all major secured credit cards can help you rebuild your credit. They all report account information to the major credit bureaus every month. And all those with low annual fees and low deposit requirements are in the running for the top spot. But the Discover it Secured Credit Card, Capital One Secured and OpenSky each bring something special to the table.

Here are the best secured credit cards to rebuild credit:

Best for Rewards: Discover it® Secured Credit Card – $0 annual fee. $200 deposit required. 2% cash back on your first $1,000 per quarter at gas stations and restaurants combined. 1% cash back on all other purchases. Rewards matched after your first year. Reports to all 3 major credit bureaus.
Best for a Low Deposit: Secured Mastercard® from Capital One – $0 annual fee. $49, $99 or $200 deposit required. $200 minimum credit line guaranteed. No rewards. Reports to all 3 major credit bureaus.
Best for No Credit Check: OpenSky® Secured Visa® Credit Card – $35 annual fee. $200 minimum deposit. No rewards. Reports to all 3 major credit bureaus.
Best for low APR: First Progress Platinum Prestige Mastercard® Secured Credit Card – $49 annual fee. $200 minimum deposit. No rewards. Reports to all 3 major credit bureaus.

There are a few more cards that belong among the best secured credit cards to rebuild credit with, too. The Citi® Secured Mastercard®, the Harley-Davidson® Secured Credit Card, and the First National Bank of Omaha Secured Visa® Card don’t charge annual fees. And that’s one of the most important things to look for in a secured credit card.

The Applied Bank® Secured Visa® Gold Preferred® Credit Card also has a low APR, at 9.99%. But you probably don’t want to carry a balance from month to month with a secured credit card. It basically means paying interest on a loan you’ve given yourself, since you pre-pay your spending limit.

Choosing the best secured credit card to rebuild credit is only the first step toward actually rebuilding. You must also use that card responsibly month after month so that positive information flows to the credit bureaus. Regularly adding positive information to your credit reports gradually covers up the negative past records.

Your card will report positive information as long as you pay your bill on time every month. Using less than 30% of your spending limit each month or paying multiple times per month can also too. But if you really want to rebuild your credit, you’ll need to get the rest of your finances in order as well. That means paying down debt, catching up on past-due accounts and steering clear of collections accounts.

Answer 2 · 2019-07-10 11:35:31

Preston Garvey, Member

@preston_garvey3 07/10/19 This answer was first published on 03/27/18 and it was last updated on 07/10/19.For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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I think that the OpenSky® Secured Visa® Credit Card is definitely the best for rebuilding. You don't get any rewards with it, but they don't put a hard inquiry on your credit report either. It's a breath of fresh air, really. Can't stand seeing those just hurt your credit for no apparent reason.

Answer 3 · 2018-04-05 09:50:54

Percy Rossman, Member

@percy_rossman 04/05/18 This answer was first published on 04/05/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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There are several really good secured credit cards that can help you rebuild your credit, provided of course you use them responsibly. Some of them are: the Secured Mastercard® from Capital One, which reports to all 3 major credit bureaus, and doesn’t have an annual fee; the Discover it® Secured Credit Card (also without an annual fee, and gives you cash back on every purchase), and the OpenSky® Secured Visa® Credit Card, which doesn’t check your credit.

Answer 4 · 2018-07-06 03:51:08

Austin Evans, Member

@jabbathehut_1 07/06/18 This answer was first published on 07/06/18. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.

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For me, it was Secured Mastercard® from Capital One. They saved me a lot of trouble. Being a Mastercard it was accepted everywhere and Capital One's customer service was top-notch.

What is the best secured credit card to rebuild credit with?

Christie Matherne, Credit Card Writer

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Preston Garvey, Member

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