Adam McCann, Financial Writer
@adam_mcan
One of the best secured credit cards with no annual fee is the Bank of America® Unlimited Cash Rewards Secured Credit Card because it gives 2% cash back on all purchases for the first year, and 1.5% cash back thereafter. This card also has a $0 annual fee, and it reports to all 3 major credit bureaus each month.
Best Secured Credit Cards with No Annual Fee
As you can see, there are several really good secured credit cards with no annual fee, and they're available even to people whose credit is damaged. Any no annual fee secured credit card is an excellent way to start building up a positive payment history and rebuilding your 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 high fees.
Popular Secured Credit Cards from Our Partners
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No Credit Check
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Partially Secured
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Rewards
Alexander Howard, Member
@alexh_finance
There are a lot more good options than there were a few years ago, I’ll tell you that. From my little bit of research, Discover and US Bank seem to have the best ones. I thought their rewards were a mistake at first…
Jonathan Reed, Member
@jon_reed_code
Let me tell you - after juggling four kids and rebuilding my credit, the Discover it® Secured Card was my lifesaver. No annual fee, plus cashback (2% at gas/restaurants, 1% everywhere else). Eight months of on-time payments, and they started reviewing my account to graduate me. Between soccer practice and grocery runs, that cashback added up!
Just avoid store cards - they’re like glitter, hard to clean up later.
Clarissa Motos, Member
@clarissa_motos
There are a couple secured credit cards I like, that don’t charge annual fees. One of them is the Capital One Platinum Secured Credit Card, and the other is the Bank of America® Unlimited Cash Rewards Secured Credit Card card. The Bank of America® Unlimited Cash Rewards Secured Credit Card is especially great, since it gives you cash back on all your purchases.
Nora Coleman, Member
@nora_c_art
From what I read, Discover it® Secured Credit Card might be the best option. Seems a couple people here agree too.
Aaron Sanders, Member
@asanders_tech
You really can’t go wrong with any of the Capital One, Discover or U.S. Bank options. Good luck!
Paul Campbell, Member
@paul_campbell2
I had a Citi® Secured Mastercard®, and it didn't have any annual fees. It's got no rewards, like Bank of America® Unlimited Cash Rewards Secured Credit Card, but I didn't have any worries about getting approved. Also, the fees were super low, and it seriously bumped my score over 2 years. It was something like 100? Obviously, it didn't do it alone, but you gotta admit: that's pretty good.
Tim Tom, Member
@timtom
Personally, I'd go for the Capital One Platinum Secured Credit Card. It's a Mastercard, so it's accepted everywhere and Capital One is a respected bank with better customer service imo.
People also ask
How much are secured credit card fees?
Secured credit card fees tend to be a lot lower than the fees charged by unsecured credit cards for people with bad credit. There are many secured credit cards with no annual fee and some with no foreign transaction fee, but most credit cards in general still charge fees for cash advances and late payments.
Secured credit cards also require a deposit to open, which is normally at least $200. The amount serves as the credit limit that you borrow...
read full answer by Theresa Chalfant, WriterWhat are two downsides of getting a secured credit card?
Two downsides of a secured credit card are the required security deposit and high interest rates. You need to place a deposit to open a secured credit card account, and your credit limit typically equals the amount of the deposit.
Carrying a balance from month to month doesn’t really make sense as a result, since it basically entails paying interest on a loan to yourself. But if you happen to rack up interest charges,...
read full answer by Adam McCann, Financial WriterDo secured credit cards help build credit?
Yes, secured credit cards help build credit if you keep them in good standing by paying the monthly bill on time. This is important because all major secured cards report to 1-3 major credit bureaus each month. Using a secured credit card responsibly is actually one of the best ways to build credit because secured cards are relatively inexpensive and easy to get, and there is no difference between using a secured credit card versus an unsecured card as far as building...
read full answer by WalletHub, Financial CompanyDid we answer your question?
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