The Discover it Secured Card is the best secured credit card with no annual fee because it gives 1% to 2% cash back on purchases and has a $0 foreign transaction fee to go along with its $0 annual fee. Discover it Secured also matches 100% of the cash rewards a new cardholder earns the first year. And it reports to all 3 major credit bureaus each month.
There are some other worthwhile options, too. The Capital One Secured Mastercard is the best secured card with no annual fee and a low deposit (as low as $49). And motorcycle fans will benefit from the Harley-Davidson Secured Card’s rewards. Whichever no annual fee secured card you choose, you’ll have the opportunity to build your credit for free if you pay your bill in full every month, since your deposit is fully refundable. But it pays to compare offers.
Best Secured Credit Cards with No Annual Fee:
- Discover it Secured Card. $0 annual fee. $0 foreign transaction fee. 2% cash back on the first $1,000 per quarter at restaurants and gas stations and 1% everywhere else. $200 minimum deposit.
- Capital One Secured Mastercard. $0 annual fee. $0 foreign transaction fee. No rewards. $49, $99 or $200 minimum deposit depending on creditworthiness. $200 credit limit.
- Harley-Davidson Secured Card. $0 annual fee. 3% foreign transaction fee. 1 Harley-Davidson rewards point per $1 spent. 2,500 points gets a $25 gift card. Entered for a chance to win a free motorcycle every time card is used through 12/31/2018.
- Citi Secured Mastercard. $0 annual fee. 3% foreign transaction fee. No rewards. $200 minimum deposit.
There are several really good secured credit cards with no annual fee, and they’re available even to people whose credit is damaged. Some actually offer competitive rewards.
Any no annual fee secured credit card is an excellent way to start building up a positive payment history and rebuilding one’s credit score. Eventually, it will be easier to qualify for unsecured credit cards with better terms. But unsecured cards for people with poor credit almost always charge annual fees.