There are several secured credit cards with rewards. They include the Discover it Secured Card, the AeroMexico Secured Visa and the Best Western Secured Mastercard. But there’s only one secured credit card with rewards and no annual fee: Discover it Secured. It offers 2% cash back on up to $1,000 spent at gas stations and restaurants every three months, in addition to 1% back for every other dollar you spend. That’s above average for any rewards card, let alone a secured card that you can get with bad credit. There’s more, too. What really makes this deal a gem is the fact that Discover will double the rewards you earn the first year your account is open. All Discover it cards have this feature right now, so you’re pretty much getting excellent-credit perks in a poor-credit package.
Discover it Secured is the best secured credit card with rewards, all things considered. But it definitely isn’t the only card in the conversation. You can get a feel for the costs and benefits of all the top offers below.
Here are the best secured credit cards with rewards:
Overall: Discover it® Secured Card - No Annual Fee
$0 annual fee. $200 security deposit. 2% back on $1,000 spent on gas and dining per quarter. 1% back on everything else. First-year rewards doubled. Reports to all 3 credit bureaus monthly.
Airline Miles: Aeromexico Secured Credit Card
$25 annual fee. $300 security deposit. 3,500 bonus miles and 1 companion ticket after first use. 2 miles per $1 spent on gas and groceries. 1 mile per $1 on other purchases. Companion ticket each account anniversary. Reports to 3 credit bureaus monthly.
Motorcycle Rewards: Harley-Davidson® Secured Credit Card
$0 annual fee. $300 security deposit. 1% back on purchases. Reports to 3 credit bureaus monthly.
Hotel Points: Best Western Secured Credit Card
$29 annual fee. $300 deposit. 3 points per $1 spent at Best Western. 2 points per $1 on other purchases. Reports to 3 credit bureaus monthly.
Military Community: Navy Federal Credit Union nRewards® Secured Credit Card
$0 annual fee. $500 deposit. 1 point per $1 spent. Reports to 3 credit bureaus monthly.
Small Business: Wells Fargo Business Secured Credit Card
$25 annual fee. $500 deposit. 1.5% cash back. Reports to 3 credit bureaus monthly.
There are a few factors you need to take into account when choosing a secured credit card. They include the annual fee, the minimum deposit requirement and whether the card offers rewards.
Paying an annual fee just to get rewards only makes sense if the amount you earn will exceed both the fee and your earnings with a cheaper card combined. Fortunately, you don’t have to worry about that because the best secured credit card with rewards also happens not to charge an annual fee.