Best Secured Credit Cards

A secured credit card is a type of credit card that requires the user to place a security deposit to open the account, which the card's issuer holds as collateral until the account is closed. Secured credit cards are the easiest type of credit card to get, and they usually have low annual fees. A secured credit card can also help you build or rebuild your credit, just like a “normal credit card.”

The one thing a secured credit card generally won't give you is the ability to actually borrow money. Most secured credit cards are fully secured, which means your spending limit will equal your deposit amount.

Compare Secured Credit Cards

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You can get a secured credit card by going to your bank or credit union and asking for an application, or by applying for a secured card online. Not all banks and credit unions offer secured credit cards, so it's best to take a look at the secured card offerings that are available online. That way, you can compare cards and apply for one that's right for your situation. Annual fees, deposit amounts, rewards and interest rates vary from card to card, so it's important to shop around to get the best deal.

Here's how to get a secured credit card:

1. Compare secured credit cards to find the right card for you. Lots of people focus on the minimum deposit amount when it comes to secured cards, but the deposit is refundable. It's smart to consider annual fees, which aren't refundable. Look for the handful of secured cards that have no annual fee.
2. Fill out an application. You need to be at least 18 years old and have a Social Security number, an ITIN or a passport, along with a non-P.O. Box U.S. address. In addition, most secured credit card applications require you to choose your deposit amount, which will usually become your credit line. How and when you pay your deposit will depend on the card issuer. When you apply, you should be prepared to provide your bank account information or open a savings account with the card issuer to pay the deposit, but some card issuers let you pay the deposit later.
3. Wait for a decision. Credit card applications are often processed instantly. But if not, many card issuers have a website or phone number to check your application status.
4. Wait for your credit card in the mail. After you pay your deposit, your card will be mailed to you. This could take anywhere from a few days to a few weeks.

When applying for any credit card, there can be some worry that your application will be denied. Because secured credit cards are designed for people with bad or no credit history, secured card applicants have the least to worry about in this regard. That doesn't mean there are no requirements, however.

In addition to placing a security deposit of $49-$300, secured credit card applicants are required by law to submit certain information for identity and income verification purposes. Many individual issuers have instituted their own secured credit card requirements as well.

Altogether, three types of information may be evaluated after you apply:

• Basic Information: All issuers require applicants to provide their name, contact info (including a non-P.O. Box U.S. address), Social Security number, and all other basic information requested on the account application.
• Income Information: All issuers require applicants to list their income in order to determine whether or not they can afford minimum payments on a new credit card.
• Credit Data: Certain issuers will not approve applicants who are delinquent on other credit card and loan accounts and/or applicants who have recent bankruptcies on their credit reports.

Overall, it's much easier to get a secured credit card than an unsecured one. Due to the required security deposit, the card issuer's risk is little to none, so many people with damaged or no credit can get a secured card. And they report to credit bureaus just like an unsecured card does, so you build credit in the process. If you use the card responsibly by paying your bill on time and maintaining low credit utilization, your credit standing will gradually go up, along with your chances of getting approved for an unsecured credit card.

Secured credit cards do help build or rebuild credit, as all major secured 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. Whether the credit that you build with your secured card is good or bad depends on your ability to pay the bills on time. You can also build credit just by having a secured card open, even if you don't use it to make purchases.

If you use a secured credit card irresponsibly, maxing it out or missing payments, you'll have negative information on your credit report. That can lead to a bad credit score. But on the flip side, responsible use of a secured card builds credit just as well as any unsecured card. The only difference between a secured card and an unsecured card is that secured cards require a security deposit and give you a credit limit equal to that deposit. Secured and unsecured cards look the same, both physically and on credit reports.

How Secured Cards Build Credit

• All major secured credit cards report to 1-3 of the major credit bureaus on a monthly basis.
• Secured credit cards report information about your payment history, balance, spending limit and more to the credit bureaus each month.
• The information secured cards report to the bureaus contributes to your credit history.
• Responsible use of a secured card results in positive information being reported, helping to cover up past mistakes or build out a thin file.
• The key to building credit with a secured card is to never miss a due date, or to just never use your card. As long as your account is open and in good standing, you're in good shape.
• Keeping your statement balance below 30% of your credit limit will help you build credit faster with a secured card.

Secured cards are the best credit cards to use if building credit is your main objective. And they're particularly useful for rebuilding credit after mistakes. Not only do secured cards report to the credit bureaus, but they also approve even applicants with bad credit. Some don't even do a credit check. And secured cards are known for low fees. The high approval odds and low fees are all because of the refundable security deposit.

But just because all major secured credit cards can help you build credit does not mean they're equally attractive. They differ in several important areas, including their annual fees, minimum deposit requirements and rewards. It's important to shop around and pick the best card for you.

To learn more, check out our guide on how secured cards work and our editors' picks for the best secured credit card offers.

Yes, you can be denied for a secured card if you have major negative items on your credit report such as an ongoing or recently discharged bankruptcy, collection accounts, or repossessions. You could also be denied if you don't meet the issuer's minimum requirements for approval. Those requirements typically include being at least 18 years old with a physical U.S. address, a Social Security number, and the ability to make payments on the account every month, among others.

Other common reasons you'd be denied for a secured card might be incomplete or inaccurate information on your application, not enough funds to cover the required security deposit, or delinquencies on other payment obligations. If you are denied for a secured credit card, consider applying for one of our editors' picks for the best no credit check credit cards, which are easier to get approved for than normal secured cards. You can also sign up for a WalletHub account and get free personalized credit analysis and advice on how to improve your credit score.

More than 30 banks and credit unions offer secured credit cards, including 7 of the 12 largest credit card issuers.

Banks That Offer Secured Credit Cards

• Bank of America
• Capital One
• Citi
• Discover
• USAA (Visa and Amex)
• U.S. Bank
• Wells Fargo

A number of smaller banks and credit unions offer secured credit cards, too. They include Capital Bank, First Progress and Green Dot, among others. The major banks that do not offer secured cards are American Express, Barclaycard, Chase, PNC and Synchrony Bank.

But remember, it's not a secured credit card's issuer that really matters. Your goal should be to find the card with the lowest possible annual fee, no matter who offers it. And you can achieve that goal by comparing secured credit cards using WalletHub's free comparison tool. You can also try our free CardAdvisor to get a personalized recommendation based on your answers to a few simple questions.

Most secured credit cards require a deposit of at least $200. And the minimum deposit required is always a good place to start. Simply opening an account is the most important thing at this point, as it will allow you to begin rebuilding your credit. In other words, depositing the minimum lets you get started right away without having to worry about giving up too much cash.

Plus, the beauty of using a secured credit card is that you can add to your deposit over time. That gives you a higher spending limit, which allows you to improve your credit utilization and boost your credit score. In general, the more available credit you have, the more favorably credit scores treat you. Just bear in mind that most secured credit card issuers won't allow your total deposit to exceed $5,000.

The best secured credit card for bad credit is Discover it® Secured Credit Card because it has a $0 annual fee, rewards you with 1 - 2% cash back on purchases, doubles the rewards you've earned after the first year, and accepts people with bad credit. The Discover it Secured Credit Card's main approval requirements are being 18+ years old and having enough income to afford monthly bill payments, plus a refundable security deposit of $200 or more.

Most secured credit cards are open to applicants with bad credit. The more lenient approval requirements are due to the fact that your security deposit will act as collateral for your credit limit. There are several secured credit cards that people with bad credit might want to consider.

Best Secured Credit Cards for Bad Credit:

• Best Overall: Discover it® Secured Credit Card
  $0 annual fee. Earn 2% cash back at gas stations and restaurants (up to $1,000 spent each quarter combined), and 1% back on all other purchases. Minimum deposit of $200.
• No Credit Check: OpenSky® Secured Visa® Credit Card
  $35 annual fee. Minimum deposit of $200.
• Low Deposit: Capital One Platinum Secured Credit Card
  $0 annual fee. Minimum deposit of $49, $99 or $200 (depending on factors such as income, debt, and creditworthiness) in exchange for a starting credit line of $200.
• Cash Back: U.S. Bank Cash+® Visa® Secured Card
  $0 annual fee. Earn 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, grocery stores or restaurants) and 1% back on all other purchases. Minimum deposit of $300.

In general, secured credit cards are the best type of credit card for people with bad credit. Secured cards offer the highest approval odds of any credit cards, and they tend to be a lot cheaper in the long run than unsecured cards for bad credit.

You just have to make sure to pay your bill on time and preferably in full, every month. If you do that, your credit should steadily improve. And that should help you qualify for a credit card upgrade sooner than you might think.

One of the best secured credit cards with no credit check is Secured Sable ONE Credit Card because it gives 2% cash back at Amazon, Netflix, Hulu, Uber, Uber Eats, Spotify, and Whole Foods, and 1% cash back on all other purchases. Plus, this card has a $0 annual fee. There are, however, a few more secured credit cards with no credit check to choose from.

Best Secured Credit Cards with No Credit Check

The annual fees on secured credit cards with no credit check range from $0 to $48 per year. The Sable Credit Card requires a $10 security deposit. The rest of the cards require a minimum deposit of $200. All these cards report information to the big 3 major credit bureaus each month. So, any of them can help you immediately begin rebuilding your credit.

Still, it's important to note that even a secured credit card with no credit check has some approval requirements. You have to be at least 18 years old, for one thing, and you need enough money for the refundable security deposit as well as your monthly bill payments.

Why You Shouldn't Rule Out Secured Cards With a Credit Check

Before you apply for a secured credit card with no credit check, make sure you actually need it. Even secured cards that require a credit check are pretty easy to get. They're meant for people with bad credit, and the refundable security deposit you place reduces the risk for issuers.

Individual issuers may have specific requirements that rule some people out. For example, you can't get most secured cards with a non-discharged bankruptcy on your credit report. But there are plenty of other cards whose main requirement is that you have enough money to fund the security deposit. Plus, while they may do a credit check, most applicants should still get approved.

What You Need to Know About Credit Checks

Keep in mind that the hard inquiry that comes with a credit check shouldn't be too big of a deal, if you end up opening an account. The score damage will be temporary. And you won't be able to qualify for any worthwhile loans until you improve your score anyway. So, if you don't need the best possible score right now, taking a short-term hit to achieve long-term gains is the way to go.

Finally, if you're nervous about getting rejected, you can check for pre-approval before applying. Pre-approval doesn't mean you're guaranteed an account. But it is a sign that your odds of approval are extremely high. If after all that you're not confident in your ability to get approved, you can always go for a secured credit card with no credit check.

The best secured credit card to rebuild credit is the Capital One Platinum Secured Credit Card because of its low deposit requirement and $0 annual fee. The deposit is $49, $99 or $200, depending on your credit standing, but you're guaranteed a $200 credit limit.

Another good option is the OpenSky® Secured Visa® Credit Card. It doesn't even require a credit check when you apply, which makes it great for rebuilding really bad credit. Or, if you want to enjoy some perks while you rebuild, Discover it® Secured Credit Card is a rare secured card with rewards. You get 1 - 2% cash back on your purchases.

To be clear, all major secured credit cards can help you rebuild your credit. They all report account information to the major credit bureaus every month. And all those with low annual fees and low deposit requirements are in the running for the top spot. But the Discover it Secured Credit Card, Capital One Platinum Secured and OpenSky cards each bring something special to the table.

Best Secured Credit Cards to Rebuild Credit

Choosing the best secured credit card to rebuild credit is only the first step toward actually rebuilding. You must also use that card responsibly month after month so that positive information flows to the credit bureaus. Regularly adding positive information to your credit reports gradually covers up negative records from the past.

Your card will report positive information as long as you pay your bill on time every month. Using less than 30% of your spending limit each month or paying multiple times per month can help too. But if you really want to rebuild your credit, you'll need to get the rest of your finances in order as well. That means paying down debt, catching up on past-due accounts and steering clear of collections accounts.

No, there aren't any Chase secured credit cards available right now. In fact, there's never been a secured credit card from Chase. Chase offers unsecured credit cards for people with at least good credit.

Although there is no Chase secured credit card, the same cannot be said for many of Chase's competitors. Capital One, Citi, and Bank of America are just some of the major banks that offer secured credit cards.

Here are some good secured credit card options:

The Citi Secured card has a $0 annual fee. The card requires a deposit of $200.

The Sable Credit Card has no credit check when you apply. This card has a $0 annual fee and requires a $10 deposit.

The Capital One Quicksilver Secured card offers 5% cash back on hotel and rental cars booked through Capital One Travel, as well as 1.5% cash back on all other purchases. The card has a $0 annual fee and requires a $200 deposit.

So, even though you're not able to get a Chase secured credit card, you still have plenty of options. And they'll all help you start building your credit, plus save some money. Once you get your credit score to “good”, you can start thinking about applying for a Chase credit card.