A secured credit card will help you build credit if you pay the bill on time every month. You can also build credit just by having a secured card open, even if you don’t use it to make purchases. All major secured credit cards report account information to at least one of the big three credit bureaus every month. That gives you the opportunity to add positive info to your credit report, which is the key to building credit, helping you either cover up past mistakes or build a reputation as a responsible borrower from scratch. Your secured card will share positive, credit-building info with the bureaus as long as your account is in good standing. You can achieve that by never missing a due date or never using your card, assuming you pay any fees it may charge. Using a small amount of your available credit and paying the resulting balance in full by the due date each month will help you build credit fastest, though.
Secured cards are actually the best credit cards to use if building credit is your main objective. And they’re particularly useful for rebuilding credit after mistakes, even if your current score is very bad. Not only do secured cards report to the credit bureaus, but they also offer nearly guaranteed approval. Some don’t even do a credit check. And secured cards are known for low fees. That’s all because you’re required to place a refundable security deposit, the amount of which generally acts as your spending limit. But the result is that secured cards are a very dependable, inexpensive way to get a second chance credit-wise.
Just because all major secured credit cards can help you build credit does not mean they’re equally attractive, though. They differ in several important areas, including their annual fees, minimum deposit requirements and rewards. We’ll point you in the right direction below.
Here are the best secured credit cards to build credit with:
You can compare these offers and other secured credit cards capable of helping you build credit on WalletHub’s secured cards page. You can also learn more about how secured cards work from our guide on the subject.