Is it better to get a secured credit card through your bank?

There are plenty of banks and credit unions that offer secured credit cards, including Bank of America, Capital One, and Citibank.

Major Banks That Offer Secured Credit Cards

• Bank of America
• Capital One
• Citibank
• USAA
• U.S. Bank
• Truist Bank
• PNC Bank

A number of smaller banks and credit unions offer secured credit cards, too. They include ... read full answerCapital Bank, First Progress, and Applied Bank, among others. The major banks that do not offer secured cards are American Express, Barclays, Chase, and Synchrony Bank.

Keep in mind that it’s not a secured credit card’s issuer that really matters. Your goal should be to find the card with the lowest possible annual fee, no matter who offers it. And you can achieve that goal by comparing secured credit cards using WalletHub's free comparison tool. You can also try our free CardAdvisor to get a personalized recommendation based on your answers to a few simple questions.

Secured credit cards are often considered bad because they require a security deposit. People with bad or limited credit may have a difficult time coming up with the money to put down a deposit, which is needed to open the account. Secured credit cards may also come with an annual fee in addition to the deposit.... read full answer

Even though secured cards might appear bad to some people, the advantages secured cards offer customers with bad or limited credit strongly outpace the disadvantages. Secured cards are easier to get than unsecured cards for bad credit, and usually come with lower fees. Secured cards also report your card activity to the three major credit bureaus, just like unsecured cards.

Finally, the security deposit required to open the account generally equals your credit limit, so there’s little risk of overspending. The deposit is fully refundable if you close out the account in good standing, too.

A secured card can build credit in as little as one month if you have no prior credit history. For people with bad credit, meaning a credit score below 640, it could take around 12 to 18 months to build fair-to-good credit with a secured card. This is assuming that you maintain a history of on-time payments and manage your finances responsibly.... read full answer

Technically, you build credit every month with a secured credit card, but pinpointing precisely how fast a secured card can get you to good credit is difficult, as every cardholder’s situation is different. Nevertheless, you can check out WalletHub’s free credit score simulator to see how various scenarios are likely to affect your credit score and gain a better understanding of how fast a secured card could build your credit.

Building Credit With a Secured Card

Using a secured credit card responsibly is the best way to build credit. Secured credit cards are cheaper and easier to get than unsecured cards for bad credit. Plus, secured cards report to the major credit bureaus the same way as unsecured cards.