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If you want to access credit, but your credit score needs some work, you might feel like you don't have any options. After all, the best travel rewards credit cards often require good to excellent credit. If you've defaulted on a loan recently, have a history of missed payments, or you ran into some financial trouble, your credit score might be lower than you'd like.
However, that doesn't mean that you are completely out of luck — you can consider applying for a secured credit card. Here's everything to know about the best secured credit cards on the market.
Best Secured Credit Cards Overview
With so many secured credit cards available, it can be difficult to narrow down which one is the best for you. Here's an overview of our top three picks.
- 1.5% cash back on every purchase, every day
*See card highlights for full bonus terms
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Best Secured Credit Card: Our Pick
More often than not, secured credit cards won't offer rewards. However, that isn't the case with the Capital One Quicksilver Secured Cash Rewards Credit Card. You will earn 1.5% Cash Back on every purchase, every day. 5% Cash Back on hotels, vacation rentals and rental cars booked through Capital One Travel. Although it's not much, it's certainly better than the alternative of not earning anything.
- 1.5% cash back on every purchase, every day
Plus, you can find out if you're pre-approved with no impact on your credit score. Keep in mind that you'll need to put down a minimum of $200 as a refundable security deposit that will serve as your credit limit. The more you put down, the higher your credit limit (up to a maximum).
The reason the Capital One Quicksilver Secured Credit Card is our top pick, apart from its earning potential, is the ability to graduate to an unsecured card once you improve your credit history.
Capital One has some excellent credit card options, including the Capital One Venture Rewards Credit Card and Capital One Venture X Rewards Credit Card, so it's worthwhile to develop a relationship with Capital One as early as you can.
Related: Capital One Quicksilver Secured Credit Card Full Review
Other Top Secured Credit Cards
Best secured credit card for high earnings
If you want sky-high earning rates, you should look into a card like the U.S. Bank Altitude Go® Secured Visa® Card. The security deposit minimum is slightly higher than some other cards on this list at $300, but if you can come up with the money, you'll be rewarded on your spending.
You'll earn a whopping 4X points on dining, takeout, and delivery on your first $2,000 spent each quarter. You'll also earn 2X points at grocery stores and gas stations, and on select streaming services. If that wasn't enough, you'll earn a $15 streaming credit after 11 months of streaming service purchases.
You can redeem the rewards you earn for a deposit into a U.S. Bank account or for travel purchases. You can even choose to redeem rewards towards a charitable donation, and U.S. Bank will match your donation 100%. The U.S. Bank Altitude Go Secured Card is an underrated option that you should consider.
Best secured credit card for bad credit
For those rebuilding credit, the Capital One Platinum Secured Credit Card is a decent option. Unfortunately, you won't earn rewards. However, the security deposit is one of the most accessible of any other card on this list, starting at just $49.
The additional benefits are relatively minimal. You'll be automatically reviewed for a higher credit limit after just six months, and you'll be able to earn your security deposit back with responsible credit usage. It's accessible to those who are rebuilding credit, which Capital One defines as having defaulted on a loan more than once or having been declined for a credit card in the last three months.
However, this doesn't mean you're guaranteed approval. You still have to meet some conditions regarding your income and existing debt to qualify for the card. Fortunately, you can find out if you are pre-approved with no impact to your credit score.
Related: Capital One Secured Card Full Review
Best secured credit card for no minimum security deposit
The Secured Chime Credit Builder Visa® Credit Card is an excellent, affordable option for those with bad credit. There's no annual fee or minimum security deposit required. You will need to open a Chime checking account before you can apply. It has built-in credit building features so you can remember to make on time payments to help boost your score.
*See card highlights for full bonus terms
*See card highlights for full bonus terms
- No credit check to apply, no annual fees, and no minimum security deposit1
- The secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
- 1Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.
- Introducing Credit Builder (effective 10/28/24, members can apply for Credit Builder without $200+ direct deposit requirement), To apply for Credit Builder, you must have an active Chime® Checking Account.
According to Chime, members see an average increase to their credit scores of 30 points. It also comes with a feature called Spot Me, which allows you to go over your available amount to spend by up to $200. This is essentially the same as getting $200 worth of credit over your security deposit. All in all, it's a solid option if you are looking to rebuild your credit score.
Related: Chime Secured Card Full Review
What Is a Secured Credit Card?
Secured cards work the same was as a typical credit card, but require an upfront security deposit to serve as your credit limit. Keep in mind that your credit score is a reflection of how trustworthy of a borrower you are in the eyes of a lender. If your score is low, you might look like a risky borrower, so the lender wants an upfront security deposit in the event you can't pay back your balance. This provides protection to the lender, and allows you to work on boosting your credit score.
How to Apply for a Secured Credit Card
You'll apply for a secured credit card in the same way you would an unsecured card. Once you select your favorite option, you'll fill out an application with your personal information, including your income and financial information.
Most secured credit cards allow you to find out if you are pre-approved with no impact to your credit score. However, once you submit the application, you might be subject to a hard pull of your credit profile, which can temporarily lower your score.
Before you apply, you'll need to determine which secured credit card is right for you. Consider the following:
- Minimum security deposit required
- Annual fees
- Earning rates
- Credit building features
- Credit bureau reporting
- Potential paths to unsecured cards
Once you weigh each of these factors, you'll be able to identify the card that best aligns with your financial goals.
Related: A Beginner's Guide to Building a Credit Card Application Strategy
Alternatives to Secured Credit Cards
There could be a number of reasons you don't want to apply for a secured credit card. Maybe you don't want to put up a security deposit, or maybe you want the opportunity to earn better rewards. Regardless of the reason, you have a few other options.
First, you can become an authorized user on someone else's account. If there is a loved one that you trust who has good credit, you can ask them to add you as an authorized user on their account. This allows you to access products you wouldn't typically be approved for, and you can benefit from their positive credit usage.
Keep in mind that the owner of the account is responsible for all of your purchases. If they don't pay their account, you will be negatively impacted as well.
You could also consider some unsecured credit cards that are accessible to those with bad credit. Options like the Mission Lane Visa® Credit Card or the Petal 2 Visa Credit Card could be worth looking into. There aren't a ton of unsecured credit cards accessible to those with poor credit, but there are some like the Chase Freedom Rise® that are accessible to those brand new to credit.
- 3% cash back on dining at restaurants, including takeout and eligible delivery services, on up to $6,000 spent in the first 6 months from account opening, plus 1.5% cash back on all other purchases.
Related: Does Being an Authorized User Affect Your Credit?
Final Thoughts
The best secured credit cards should be accessible to those with fair or poor credit, and will hopefully allow you to earn rewards or build a path to better credit. The options on this list, while not comprehensive of all the options available, reflect the best of the best. If you are ready to increase your credit score, applying for one of these credit cards is a great place to start.
