Tom Lipkis, WalletHub Credit Card Consultant
@cindercard
One of the best secured credit cards that reports as unsecured to the credit bureaus is the Capital One Quicksilver Secured Cash Rewards Credit Card because it gives 1.5 - 5% cash back on purchases and has a $0 annual fee. All major credit cards report to the credit bureaus, and they aren't labeled "secured" or "unsecured.” They just show up as open credit card accounts, no matter what type of card they are.
The big difference between secured and regular credit cards is that secured cards require a security deposit, which serves as your spending limit. This makes secured cards easier to get.
Best Secured Credit Cards That Report as Unsecured
Ongoing Rewards: 2% cash back on all purchases for the first year, and 1.5% cash back thereafter
Annual Fee: $0
Minimum Deposit Required: $200
Credit Score: Bad
Ongoing Rewards: 1.5 points per $1 spent on all purchases
Annual Fee: $0
Minimum Deposit Required: $200
Credit Score: Bad
Ongoing Rewards: 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel, and 1.5% cash back on all other purchases
Annual Fee: $0
Minimum Deposit Required: $200
Credit Score: Bad
Ongoing Rewards: 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 (discount stores/supercenters and wholesale clubs excluded) and 1% back on all other purchases
Annual Fee: $0
Minimum Deposit Required: $300
Credit Score: Bad
Ongoing Rewards: N/A
Annual Fee: $0
Minimum Deposit Required: $300
Credit Score: Bad
Secured cards have the exact same credit-building potential as unsecured cards. If you make all your payments on time and don’t rack up a lot of debt, you should eventually be able to qualify for unsecured cards with more attractive terms. Also, there are plenty of good options currently available, all of which report to all three credit bureaus every month. That means any of them can help you improve your credit if used carefully.
Exactly which type of secured card is best for you depends on your preferences. But it’s probably best to focus on no annual fee first. Then, you can worry about other things like rewards.
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
Andrew Young, Member
@a_young_1984
This is not something you have to worry about. Just focus on getting a card with no annual fee and paying the bill on time every month.
Sarah Johnson, Member
@sarahj_sun
Like others have said, you can get a secured card without worrying about it reporting to the credit bureaus in some weird way. If you really want an unsecured card in the long run but you’re doing the responsible thing by getting a secured card now, try for a secured card that graduates to unsecured. Discover is the clear winner, in my opinion. They reliably review accounts after around 8 months and upgrade with responsible use.
Nathan WW, Member
@nward_nlt
Discover is the most reliable. People say they usually check around 6-8 months and upgrade you if you’ve been using it right.
Denis Smith, Member
@denis_smith
All of them, really. They'll all affect your score in the same way, and they'll all work pretty much the same way an unsecured card will, except for that deposit.
People also ask
How do you switch from a secured to unsecured credit card?
People with bad credit can usually graduate from a secured card to a decent unsecured credit card after 12 to 18 months. But it depends on what you do in the meantime, not to mention how badly damaged your credit is. Making on-time payments every month you have a secured card will help speed things up, as will using only a portion of your credit limit.
When the time comes, the switch from a secured card to an unsecured...
read full answer by John S Kiernan, Managing EditorWhat's the difference between secured and unsecured credit cards?
The main difference between a secured credit card and an unsecured credit card is that secured cards require you to place a refundable security deposit when you open your account. Apart from this security deposit, secured and unsecured credit cards aren't necessarily better or worse for your credit. The amount of this deposit typically serves as the credit limit for the secured card, which means you have to pre-pay for purchases with a secured card. You’ll usually have to...
read full answer by WalletHub, Financial CompanyWhat are the best secured cards that graduate to unsecured?
The best secured card that graduates to unsecured is the Bank of America® Travel Rewards Secured Credit Card. Bank of America periodically reviews accounts for possible graduation, and it reports to all 3 major credit bureaus to help you build credit history. You also get 1.5 points per $1 spent with this card, helping you save money.
Best Secured Cards That Graduate to Unsecured
When your secured card graduates to an unsecured card, your credit line no longer needs to be secured with...
read full answer by Archie Conway, WalletHub Financial AnalystDid we answer your question?
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Your information is incorrect. Most secured cards report as secured, but a card being secured or unsecured does not affect it's power to raise your credit score provided you keep the credit utilization under 30%. It is recommended that you seek a card with no annual fee if you do not plan on carrying a balance month to month and a lower interest rate if you see yourself carrying over a balance month to month. The only card I know of that does not show as secured is the Navy Federal Credit Union secured card. NOTE: You do NOT have to be Navy to join the credit union, just look at their eligibility page for other ways to qualify. The 'Discover it' card is great (no annual fee), but it shows as secured. The Capital One Platinum is great (no annual fee), but it shows as secured. NOTE: Capital One is quick to raise you limit (as their cards are partially secured) after 5 'on time' payments and they convert you to an unsecured card in about 1 year. CitiCard has a great (no annual fee) card that shows as secured, but converts to unsecured in 8-12 month with good payment history. There is also something called a credit builder loan at Digital Federal Credit Union that boosts your credit via a personal loan that you do not have to secure as they do it for you with the loan proceeds. Meaning, they loan you (lets say) $1,000.00, but instead of sending it to you they deposit it in a savings account as collateral, you make your payments and then once paid off, they send you the money they loaned you. Great way to save and get a great credit reference on all three major credit bureaus. NOTE: Once you are converted to unsecured, they update your credit bureau file without the word 'secured' showing anywhere on their reporting. Additionally, they send your deposit back after conversion to unsecured. What I am posting is accurate as of the date posted. Thank you