For some people, applying for a credit card can be difficult due to their credit score situation. Secured credit cards are the remedy for that, and there is an abundance of choices in the market for you. They require a deposit (some of them can be pretty high!) and commonly lack welcome bonuses and rewards, but you don’t have to settle for such traditional cards.
There are secured credit cards now that can help you fix your credit score while allowing you to earn rewards and even receive intro bonuses! Here are some of them that will undoubtedly appeal to your needs and taste!
1 Discover It Secured Credit Card
Discover It Secured Credit Card
Intro Bonus: Cashback Match
Regular APR: 22.99% (Variable)
Credit Score: New/Rebuilding Credit
Annual Fee: $0
Highlights:
- The card offers Discover’s Cashback Match intro bonus.
- You can earn 2% cashback at gas stations and restaurants on up to $1,000 in combined purchases each quarter and an unlimited 1% on all other purchases.
- The regular APR is 22.99% (variable).
- It provides free FICO score access.
- There is a balance transfer intro APR of 10.99% for 6 months.
- It has no penalty APR.
Best Secured Credit Card of 2022
Discover It Secured Credit Card ticks all the boxes of a perfect secured credit card. No other card can beat its features, and if you are new to it, you wouldn’t even think it is a secured credit card. The only thing that gives it away is the minimum refundable $200 deposit.
Compared to almost all secured credit cards, Discover It Secured differs by offering a welcome bonus in the form of a Cashback Match. This means all the cashback bonuses you’ve earned by the end of your first year using the card will be matched by Discover dollar-for-dollar. Not only that: the card comes with a rewards program for its users. With this, you can get 2% cashback at gas stations and restaurants on up to $1,000 in combined purchases each quarter and an unlimited 1% on all other purchases. As a plus, the card also offers a balance transfer intro APR of 10.99% for 6 months, and there is no penalty APR!
The card also excels in its primary purpose as a secured credit card. Besides the $0 annual fees and reporting to three major credit bureaus, you have free FICO score access each month, and you will receive alerts when your Social Security number is detected on any of thousands of Dark Web sites. And after seven months of proper use of the card, Discover will review your account to see if your deposit can be returned and if you could move to an unsecured line of credit.
2 Bank of America Unlimited Cash Rewards Secured Credit Card
Bank of America Unlimited Cash Rewards Secured Credit Card
Intro Bonus: None
Regular APR: 23.99% (Variable)
Credit Score: 0 to 649 (Bad to Poor)
Annual Fee: $0
Highlights:
- The card has a foreign transaction fee.
- Cardholders can get an unlimited 1.5% back on all purchases, and the rewards don’t expire.
- You need to provide at least a minimum of $300 deposit.
- There is a transaction fee, and the APR is 23.99% variable.
- You have access to your FICO credit scores.
Best Secured Credit Card for Flat-rate Cashback
The Bank of America Unlimited Cash Rewards Secured Credit Card is one of the fewest options out there that will let you earn rewards as you rebuild your credit score. It doesn’t have the intro bonus and variety of categories others are offering, but its unlimited 1.5% cashback rate on all purchases is a beauty in its own way. Without categories or spending limits to track, the card can provide consistent earning wherever you use it.
There is a minimum deposit of at least $300 (up to a maximum of $4,900) to open the account, but it won’t require any annual fee. And after the favorable payment activities using the card, you will be considered for an unsecured card in the future. And to aid you in making it possible, you will be granted access to your FICO credit scores.
3 U.S. Bank Cash+ Visa Secured Card
U.S. Bank Cash+ Visa Secured Card
Intro Bonus: None
Regular APR: 25.99% (Variable)
Credit Score: 0 to 649 (Bad to Poor)
Annual Fee: $0
Highlights:
- You need to enroll each quarter to get the bonus rewards, and they expire after 36 months.
- Cardholders can choose the payment due date.
- You can provide deposits between $300 and $5,000.
- It lets you select your 5% and 2% categories.
- The choice categories offer limited options for you.
Best Secured Credit Card With Choice Category
The U.S. Bank Cash+ Visa Secured Card made it to our list because of its surprising features you wouldn’t expect from a secured credit card. Despite not having a welcome bonus, it has its own rewards program allowing you to choose your own category. Best of all, the rewards rate is no joke: it can hit up to 5%!
Indeed, the Cash+ Visa Secured can be a generous card if it fits your spending needs. You can choose two categories of your choice and earn 5% cashback on the first $2,000 in combined eligible purchases each quarter. Then, there is 2% cashback on eligible purchases in the choice of one everyday category and 1% cashback on all other eligible purchases. However, while the cashback rates are so impressive, the select categories can be very limited as you can only choose from gas stations, grocery stores, and restaurants. With this, you might only enjoy the card’s full potential if you think the categories perfectly suit your need.
On a positive note, you have options on how you want to redeem your cashback. It can be in the form of a statement credit to your account, a U.S. Bank rewards card, or a direct deposit to your U.S. Bank checking, savings or money market account.
Further, you can have all the benefits of this secured credit card without paying an annual fee. The issuer also reports to all three major credit bureaus, and you can graduate to an unsecured card with good payment behavior over time.
4 Capital One Platinum Secured Credit Card
Capital One Platinum Secured Credit Card
Intro Bonus: None
Regular APR: 26.99% (Variable)
Credit Score: No Credit History
Annual Fee: $0
Highlights:
- After six months, your account will be reviewed to determine if you could get your deposit back and be approved for a higher credit line.
- The card has no rewards program and welcome bonus but comes with $0 annual fees.
- The regular APR is high.
- Your progress will be reported to the three credit bureaus.
- The card comes with a $0 fraud liability feature.
Best Secured Credit Card With Lowest Deposit Requirement
The deposit amount is often the challenge in choosing a secured credit card. The minimum $200 deposit is expected in most cards, but having one that exceeds that amount can intimidate some (especially those already struggling financially). This is why Capital One Platinum Secured Credit Card is a true superstar in this game.
When you apply, you will be required to pay a minimum deposit of at least $200, $99, or as low as $49. Nonetheless, you will automatically secure a $200 credit line regardless of the deposit amount approved to you. And to make the card more considerate, you can go beyond the basic minimum deposit amount and go up to $1,000 to get a higher credit limit.
On the other hand, while the card has $0 annual fees and there is a possibility of a low deposit, do mind that this secured credit card from Capital One has a variable APR of 26.99% that is relatively high. With this, it is essential to practice the proper use of the card by paying off your balance on time and in full each month. And after six months of responsible use, you could be approved of a higher credit line (with no additional deposit requirements!) and regain your security deposit in the form of a statement credit.
5 BankAmericard Secured Credit Card
BankAmericard Secured Credit Card
Intro Bonus: None
Regular APR: 22.99% (Variable)
Credit Score: No Credit History
Annual Fee: $0
Highlights:
- The deposit you can provide can range from $300 to $4,900.
- You have free access to your updated FICO Score every month.
- There is no penalty APR.
- The card has a 3% foreign transaction fee.
- It comes with chip technology for enhanced security and protection you can use at chip-enabled terminals in over 130 countries.
- It offers overdraft protection on your Bank of America checking account.
Best Secured Credit Card for Higher Credit Limit
If you need a reliable, secured credit card that can really help you in your credit-building journey, the BankAmericard Secured can be a good option. Not only will the bank keep an eye on your account, but you can also get access to your updated FICO Score every month for free via a mobile banking app or online banking. With this, you can be aware of your progress and keep track of your standing.
You can use the card without paying annual fees, but a minimum refundable security deposit of $300 is required to open the account. Using the deposit you provide, your income, and your ability to pay the credit line established, the bank will determine the appropriate maximum credit limit for you. And if you want to get the chance of being approved for a higher credit limit, you can go beyond the indicated minimum and submit a maximum deposit of $4,900. This can make things more comfortable for you as a spender as a higher credit limit means a lower credit utilization ratio.
Moreover, like other secured cards, there are no rewards offered in BankAmericard Secured. Nonetheless, you are assured that you can upgrade to a standard unsecured card and receive your deposit back when you use it properly.
