The best secured credit card with rewards is Discover it Secured because it has a $0 annual fee and offers 2% cash back on up to $1,000 spent at gas stations and restaurants every quarter. It also gives 1% back on all other purchases, and Discover matches all your cash back earned during the first year.
Another card in the running for best secured credit card with rewards is the AeroMexico Secured Visa. It’s extremely rare to see an airline card for bad credit. But this one gives a nice bonus of 3,500 miles and a companion ticket just for using the card once. Plus, you get 2 miles per $1 on gas and groceries and 1 on all other purchases.
The Best Western Secured card is yet another good secured credit card with rewards. It gives 3 points per $1 on Best Western purchases and 2 on everything else. And you get a 5,000-point bonus for making a single purchase.
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. It’s good to weigh all your options before settling on the best card for you. 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.
Here are the best secured credit cards with rewards:
Overall: Discover it Secured. $0 annual fee. $200 security deposit. 2% back on the first $1,000 spent on gas and dining per quarter. 1% back on everything else. First-year rewards doubled.
Airline Miles: AeroMexico Secured Visa. $25 annual fee. $300 security deposit. 3,500 bonus miles and 1 companion ticket ($99 value) after first use. 2 miles per $1 spent on gas and groceries and 1 on other purchases. Companion ticket each account anniversary. Free checked bags on AeroMexico flights.
Motorcycle Rewards: Harley-Davidson Secured Visa. $0 annual fee. $300 security deposit. 1 point per $1 on all purchases. 2,000 points gets you a $25 H-D gift card.
Hotel Points: Best Western Secured Credit Card $29 annual fee. $300 deposit. 5,000 bonus points after first use. 3 points per $1 spent at Best Western. 2 points per $1 on other purchases. 10% discount at bwrcarddiscount.com.
Military Community: Navy Federal Credit Union nRewards Secured Mastercard. $0 annual fee. $500 deposit. 1 point per $1 on all purchases.
Small Business: Wells Fargo Business Secured Mastercard. $25 annual fee. $500 deposit. 1.5% cash back on all purchases.
There are a few factors you should consider 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’ll earn exceeds both the fee and your expected 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.