The best secured credit card with rewards is the Discover it® Secured Credit Card because it has a $0 annual fee and offers 2% cash back on up to $1,000 spent at gas stations and restaurants combined every quarter. It also gives 1% back on all other purchases, and Discover matches all your cash back earned during the first year.
Rewards are among the few factors that you should consider when choosing a secured credit card, along with the annual fee and the minimum deposit requirement. Paying an annual fee just to get rewards only makes sense if the amount you’ll earn exceeds both the fee and your expected earnings with a cheaper card combined.
By the way, all of these cards report to the credit bureaus on a monthly basis, giving you the chance to build credit with on-time payments.
I like the Discover it Secured Credit Card. You earn 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter, and 1% cash back on all other credit card purchases. Plus, they automatically match all the cash back you’ve earned at the end of the first year. Your cash back never expires, and you can redeem it in any amount, anytime.
One of the best credit card for points is Chase Sapphire Reserve® because it gives 1 - 10 points per $1 spent, plus an initial bonus of 60,000 bonus points for spending $4,000 in the first 3 months. Chase Sapphire Reserve points are worth 1.5 cents each when redeemed for Travel through Chase Ultimate Rewards Reserved.
By comparison, the average credit card point has a redemption value of around 1 cent. Just bear in mind that Chase Sapphire Reserve comes with a steep price tag, with an annual fee of $550.… read full answer
When shopping around for a points credit card, it’s important to keep in mind that points – along with miles – can undergo devaluation, meaning they can change in value at any time. Credit card companies reserve the right to change rewards programs at their leisure, or to cancel them altogether. There are also lots of rules governing each credit card’s rewards system, so make sure you’re aware of those rules before you sign up for a card.
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.
The best secured credit card for bad credit is Discover it® Secured Credit Card because it has a $0 annual fee, rewards you with 1 - 2% cash back on purchases, doubles the rewards you’ve earned after the first year, and accepts people with bad credit. The Discover it Secured Credit Card’s main approval requirements are being 18+ years old and having enough income to afford monthly bill payments, plus a refundable security deposit of $200 or more.… read full answer
Most secured credit cards are open to applicants with bad credit. The more lenient approval requirements are due to the fact that your security deposit will act as collateral for your credit limit. There are several secured credit cards that people with bad credit might want to consider.
Best Secured Credit Cards for Bad Credit:
Best Overall:Discover it® Secured Credit Card$0 annual fee. Earn 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases. Minimum deposit of $200.
Low Deposit:Capital One Platinum Secured Credit Card$0 annual fee. Minimum deposit of $49, $99 or $200 (depending on factors such as income, debt, and creditworthiness) in exchange for a starting credit line of $200.
Cash Back:U.S. Bank Cash+® Visa® Secured Card$0 annual fee. Earn 5% cash back on two categories of your choice (up to $2,000 each quarter), 5% back on prepaid air, hotel and car reservations booked in the Rewards Travel Center, 2% back on your choice of one everyday category (like gas stations, EV charging stations, grocery stores or restaurants) and 1% back on all other purchases. Minimum deposit of $300.
In general, secured credit cards are the best type of credit card for people with bad credit. Secured cards offer the highest approval odds of any credit cards, and they tend to be a lot cheaper in the long run than unsecured cards for bad credit.
You just have to make sure to pay your bill on time and preferably in full, every month. If you do that, your credit should steadily improve. And that should help you qualify for a credit card upgrade sooner than you might think.
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