Best Credit Cards of 2018

The best Discover card for bad credit is definitely the Discover it Secured Credit Card. In fact, it’s really the only Discover card that you can count on getting despite a bad credit score. Here’s how it works: when you apply, you place a security deposit of at least $200, which will become your credit line if you’re approved. This refundable deposit acts as collateral for Discover, reducing their risk and explaining why it’s so easy to get approved.

But that’s not all you need to know about Discover it Secured. There’s more to learn, both in terms of its benefits and some fine print details.

Discover it Secured is the best Discover card for bad credit because:

• You won’t pay an annual fee. This card is free to have. There’s no foreign transaction fee either. But do keep in mind that you’ll have to temporarily part with at least $200 to make the security deposit.
  
• There are rewards. It’s unusual for a secured card to have rewards, but Discover it Secured does. You get 2% cash back on your first $1,000 of purchases at gas stations and restaurants each quarter. Everything else gets 1% cash back. And at the end of your first year, your rewards for the year are matched by Discover.
  
• It’s unlikely, but possible, you’ll be declined. Income, debt, and bankruptcy can affect your approval odds. But this is your best chance, as far as Discover cards go.
  
• Credit-building potential is equal to unsecured. There’s no difference in the way secured cards and unsecured cards report information to the credit bureaus.
  
• You can increase your credit limit. Anytime after getting your first monthly statement, you can call Discover at 1-800-347-3085 to add to your security deposit. Your credit line will increase by the amount of this additional deposit.
  
• Graduation to unsecured is possible. After you’ve had it Secured for at least 8 months, Discover will review your credit every so often. They might decide to refund your security deposit and transition you to an unsecured card.

So Discover it Secured is easy to get and has a lot of benefits. But if you want more options and are open to cards from other companies, I’d recommend the Capital One Secured Mastercard, Credit One Bank Platinum Visa and Indigo Mastercard. They’re some of the best overall offers for bad credit.

The best credit cards for 20-year-olds (and 20-somethings more generally) depend on whether  you’ve already built any credit and whether you’re still in school. If you don’t have any credit history yet, you’ll want to get a starter card, like Capital One QuicksilverOne. If you’re still a student, you could get a better deal with  Journey Student Rewards from Capital One. 

But if you’re no stranger to credit and you’ve already built up a good history, you can start setting your sights on more lucrative rewards cards such as Citi Double Cash (2% cash back on everything) or Capital One Venture (2 miles per $1 on everything). 

HERE ARE THE BEST CREDIT CARDS FOR 20-SOMETHINGS: 

• For fair/limited credit: Capital One QuicksilverOne
  1.5% cash back on all purchases. $39 annual fee. 
• For college/grad students: Journey Student Rewards from Capital One
  1% cash back on all purchases or 1.25% if you pay on time. No annual fee. Can get this card with limited history or fair credit.
• For cash back: Citi Double Cash
  2% cash back on all purchases, 1% when you buy and another 1% when you pay. 0% APR on balance transfers for 18 months (3% fee). No annual fee. You need good credit to get this card.
• For travel rewards: Capital One Venture
  50,000 bonus miles when you spend $3,000 in the first 3 months. 10 miles per $1 at hotels.com/venture, and 2 on all other purchases. $95 annual fee ($0 the first year). You need good credit.
• For online shopping: Amazon.com Credit Card
  $50 Amazon gift card after you’re approved ($70 for Prime members). 3 points per $1 on all Amazon and Whole Foods purchases (5 with Prime). 2 points per $1 at gas stations, restaurants, and drugstores (1 on all other purchases). No annual fee. You need good credit. 
• For bad credit: Discover it Secured
  2% cash back on $1,000 spent per quarter at restaurants and gas stations, and 1% back on all other purchases. The first year’s cash back is matched on your account anniversary. $200 minimum security deposit. No annual fee. 

As you can see, there are good credit cards for 20 somethings of all experience levels, from bad credit to good credit and above. 

Unless you have good or excellent credit, you’re not going to find a guaranteed approval credit card with a $1,000 limit. The best you’ll be able to do is either place a deposit of $1,000 on a secured credit card or apply for an unsecured card that you are way overqualified for. The [cc-name id="2289"] is one good option, for example, as it doesn’t charge an annual fee and allows deposits of up to $2,500.

It’s important to remember that no credit card really offers guaranteed approval. Secured cards have the highest approval odds because they require you to place a refundable security deposit, the amount of which matches your spending limit. But that means you won’t be able to use them for any purchases you don’t already have the money for.

Beyond that, the better your credit is, the higher your approval odds will be for unsecured credit cards. But credit cards for people with limited or fair credit may or may not offer $1,000 spending limits, so you’ll likely have to set your sights a bit higher to be sure of getting that much fire power. And that means you need really good credit for approval to be anywhere close to guaranteed.

For tips to help you get the credit needed to qualify for the best cards, check out WalletHub’s credit improvement guide. You can also get personalized recommendations for credit cards with high approval odds by signing up for a free WalletHub account.

The best secured credit card with no annual fee is the Discover it Secured Card because it offers 2% cash back on up to $1,000 spent at restaurants and gas stations each quarter, gives 1% back everywhere else, and doubles the rewards you earn the first year. In addition to a $0 annual fee, Discover it Secured also has a $0 foreign transaction fee and reports to all 3 major credit bureaus each month.

It’s rare for a secured card to have no annual fee or rewards, let alone both. But you do have a few more options, at for low fees. Other top secured credit cards with no annual fee include the Capital One Secured Mastercard (deposit as low as $49 for a $200 credit limit) and the Harley Davidson Secured Card (1 point for every $1 spent).

Best Secured Credit Cards with No Annual Fee:

• Best rewards – Discover it Secured: $0 annual fee. $0 foreign transaction fee. 2% cash back on your first $1,000 per quarter at restaurants and gas stations. 1% back everywhere else. $200 minimum deposit.
• Lowest deposit – Capital One Secured Mastercard: $0 annual fee. $0 foreign transaction fee. No rewards. $49, $99 or $200 minimum deposit depending on your creditworthiness. $200 credit limit.
• Harley-Davidson rewards – Harley-Davidson Secured: $0 annual fee. 3% foreign transaction fee. 1 point per $1 spent. 2,500 points get you a $25 gift card. Entered for a chance to win a free motorcycle every time you use your card through 12/31/2018.
• Another reliable option – Citi Secured Mastercard: $0 annual fee. 3% foreign transaction fee. No rewards. $200 minimum deposit.

Even if your credit is damaged, there are several great options for a secured credit card with no annual fee. You may even be able to get some rewards. And once you get a secured card, you can start building up a positive payment history and rebuilding your credit score. Eventually, you’ll be able qualify for a better credit card, close your secured account, and get back your security deposit.