How do I choose a secured credit card?

One of the best secured credit cards to rebuild credit with is the Capital One Quicksilver Secured Cash Rewards Credit Card because it has a $0 annual fee, reports to the credit bureaus, and gives 1.5 - 5% cash back on all purchases. The minimum deposit is $200, and the amount you put down will act as your credit limit.

Another good option 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, the U.S. Bank Altitude® Go Visa® Secured Card offers 1 - 4 points per $1 spent on purchases.... read full answer

Some of the Best Secured Credit Cards to Rebuild Credit

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. Also, all those with low annual fees and low deposit requirements are in the running for the top spot. But the cards listed above bring something special to the table.

How to Rebuild Credit with a Secured Credit Card

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 negative records from the past.

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 help, 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.

Yes, you can be denied for a secured card if you have major negative items on your credit report such as an ongoing or recently discharged bankruptcy, collection accounts, or repossessions. You could also be denied if you don’t meet the issuer’s minimum requirements for approval. Those requirements typically include being at least 18 years old with a physical U.S. address, a Social Security number, and the ability to make payments on the account every month, among others.... read full answer

Other common reasons you’d be denied for a secured card might be incomplete or inaccurate information on your application, not enough funds to cover the required security deposit, or delinquencies on other payment obligations. If you are denied for a secured credit card, consider applying for one of our editors’ picks for the best no credit check credit cards, which are easier to get approved for than normal secured cards. You can also sign up for a WalletHub account and get free personalized credit analysis and advice on how to improve your credit score.

It’s hard to say exactly how much a secured credit card will raise your credit score, or how fast your score will improve. A good ballpark estimate is that you should see a bit of improvement after a few months and solid gains after a year, assuming you pay your bills on time. And if you start with a bad credit score, you can expect to qualify for an ... read full answerunsecured credit card for fair credit within 12-18 months.

But a lot depends on your starting point, particularly what types of negative records are on your credit report. How you manage both your new secured card and your other financial obligations is very important, too. Paying all your bills by the due date every month is key. Doing so will add positive information to your credit reports, helping cover up mistakes of the past. Failing to do so will only reinforce the idea that you’re a risky borrower. Your credit score will also improve faster the more available credit you have. And you can control that by submitting a larger initial security deposit or adding to it over time.

For a more accurate idea of how much a secured card will raise your credit score, check out your free personalized credit analysis from WalletHub. We’ll tell you which aspects of your credit need the most improvement, exactly what you need to do to fix them, how fast you can raise your score and which credit card will save you the most money. You can also watch your score improve with free daily credit score updates.