Best secured credit cards of November 2024
If you’re not currently eligible for a traditional credit card — due to limited credit history, a poor credit score or a host of other factors — you may want to consider one of our top picks for the best secured credit cards. A secured credit card typically requires a deposit from the cardholder when the account is opened which is then used to determine your credit limit. Your spending on the card is typically reported to the major credit bureaus, helping establish (or improve) your credit. Many even offer the ability to convert to an unsecured card after several months of responsible usage, at which point your initial deposit will be refunded.
Some secured credit cards incur an annual fee, while others offer cash back. It’s important to choose a secured credit card that suits your needs and fits your budget to help you reach your financial goals.
- Capital One Platinum Secured Credit Card: Best for credit card perks
- Capital One Quicksilver Secured Cash Rewards Credit Card: Best for flat-rate earning
- OpenSky® Secured Visa® Credit Card: Best for poor credit history
- Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card: Best for small businesses with limited credit history
- Discover it® Secured Credit Card: Best for people with limited or poor credit history
Best for credit card perks
The Capital One Platinum Secured Credit Card is one of the few secured credit cards that may extend you a credit line that is greater than your security deposit. The card can be a good choice for people looking for a secured card since it includes no foreign transaction fees, fraud coverage for unauthorized charges, and Mastercard IF Theft Protection. It also comes with CreditWise, which gives you alerts when your TransUnion or Experian credit report changes.
Pros
- No annual fee.
- No foreign transaction fees.
- Travel insurance and shopping protection.
Cons
- No bonus earning.
- Requires a deposit.
- No annual or hidden fees. See if you're approved in seconds
- Building your credit? Using the Capital One Platinum Secured card responsibly could help
- Put down a refundable security deposit starting at $49 to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
- Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app
Best for flat-rate earning
| 5% | Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply |
| 1.5% | Earn unlimited 1.5% cash back on every purchase, everywhere |
The Capital One Quicksilver Secured card is a great option for new cardholders looking for a flat cash back rate. The Quicksilver Secured card earns unlimited 1.5% cash back on all purchases and has no annual fee. Unfortunately, the secured version of the Quicksilver card does not offer a sign-up bonus. In addition, cardmembers can enjoy unlimited 5% cash back on hotels and rental cars booked through Capital One Travel. It is a great card if you are looking for a simple way to earn cash back on all purchases, but it does not offer many additional perks or bonus earnings.
Pros
- No annual fee.
- Cashback on all purchases.
- Unlimited cash back.
Cons
- Minimal bonus earning categories.
- No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds
- Put down a refundable $200 security deposit to get a $200 initial credit line
- Building your credit? Using a card like this responsibly could help
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you'll get Capital One's best prices on thousands of trip options. Terms apply
- Monitor your credit score with CreditWise from Capital One. It's free for everyone
Best for poor credit history
| Up to 10% | Up to 10% cash back rewards on purchases at over 40,000 retailers |
The OpenSky Secured Visa Credit Card comes with a $35 annual fee but is a great option for cardholders with a poor credit history. The Opensky Secured card touts a high approval rate, even for people without a bank account. In addition, the card does not require a credit check and cardholders are routinely considered for an increased credit line after six months.
Pros
- No credit pull.
- Approval is possible with short/bad credit history.
Cons
- Annual fee.
- No reward earning.
- New feature! Earn up to 10% cash back on everyday purchases
- No credit check to apply. Zero credit risk to apply!
- Looking to build or rebuild your credit? 2 out of 3 OpenSky cardholders increase their credit score by an average of 41 points in just 3 months
- Get free monthly access to your FICO score in our mobile application
- Build your credit history across 3 major credit reporting agencies: Experian, Equifax, and TransUnion
- Add to your mobile wallet and make purchases using Apple Pay, Samsung Pay and Google Pay
- Fund your card with a low $200 refundable security deposit to get a $200 credit line
- Apply in less than 5 minutes with our mobile first application
- Choose the due date that fits your schedule with flexible payment dates
- Fund your security deposit over 60 days with the option to make partial payments
- Over 1.4 Million Cardholders Have Used OpenSky Secured Credit Card To Improve Their Credit
Best for small businesses with limited credit history
Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card
| 1.5% | Earn 1.5% cash back on every purchase, every time. No annual cap and rewards don't expire as long as your account remains open. |
Pros
- No annual fee
- Unlimited cash-back on every purchase
- Up to $100,000 in travel accident insurance
Cons
- Requires high minimum security deposit
- Balance transfer fee
This no annual fee secured business card is a solid pick for small business owners who are looking to build their business credit. It does require a high minimum security deposit of $1,000 but cardholders have the potential to graduate to the unsecured version of this card. Additionally, the card comes with premium business perks like Quickbooks and up to $100,000 in travel accident insurance.
Best for people with limited or poor credit history
Discover it® Secured Credit Card
| 2% | Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter, automatically. |
| 1% | Earn unlimited 1% cash back on all other purchases. |
Pros
- No annual fee
- Welcome bonus
- Good for those with a limited or bad credit history
Cons
- Requires a deposit
The Discover it® Secured Credit Card is a solid choice for people with poor or limited credit history. Discover will consider cardholders for a non-secured version of the card after more than seven months of responsible usage. Additionally, the card comes with no annual fee and rewards earning. Overall, this unique card can be a great way for new credit card users or someone who is looking to repair their credit.
Comparing the best secured credit cards
Credit card | Best for | Intro offer | Earning rate | Annual fee |
|---|---|---|---|---|
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | credit card perks | N/A | N/A | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital One's secure site | flat-rate earning | N/A | 1.5 - 5% cash-back | $0 |
Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. at Capital Bank's secure site | poor credit history | N/A | 10% cash-back | $35 |
Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card * *The information about the Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card has been collected independently by ThePointsGuy.com. The card details have not been reviewed or approved by the card issuer. Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. Information updated as of 11/12/2024 | small businesses with limited credit history | N/A | 1.5% cash-back | $0 |
Discover it® Secured Credit Card * *The information about the Discover it® Secured Credit Card has been collected independently by ThePointsGuy.com. The card details have not been reviewed or approved by the card issuer. Open Editors rating Card Rating is based on the opinion of TPG‘s editors and is not influenced by the card issuer. Information updated as of 11/18/2024 | people with limited or poor credit history | Cashback Match™ Open Intro bonus Intro Offer: Unlimited Cashback Match - only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match. | 1 - 2% cash-back | $0 |
More details on the best secured credit cards
The Capital One Platinum Secured Credit Card is one of the few secured credit cards that may extend you a credit line that is greater than your security deposit. It also comes with CreditWise, which gives you alerts when your TransUnion or Experian credit report changes.
The card can be a good choice for people looking for a secured card since it includes no foreign transaction fees and some protections.
This card offers no annual fee and no foreign transaction fee. Plus, you’ll automatically be considered for the unsecured version of the card after demonstrating responsible credit usage.
If you want higher earnings rates, the Capital One Quicksilver Secured Cash Rewards Credit Card offers 1.5% cash back on all purchases and 5% cash back on hotels and rental cars booked through Capital One Travel.
The Capital One Quicksilver Secured earns unlimited 1.5% cash back on all purchases and has no annual fee. In addition, cardmembers can enjoy unlimited 5% cash back on hotels and rental cars booked through Capital One Travel.
This is a great card if you are looking for a simple way to earn cash back on all purchases, even though it doesn’t offer many additional perks or bonus earnings.
This card is a great option for new cardholders looking for a flat cash back rate, and you’ll be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed.
If you want a higher credit limit and solid travel benefits as opposed to higher earnings rates, go for the Capital One Platinum Secured Credit Card.
The OpenSky Secured Visa Credit Card comes with a $35 annual fee but is a great option for cardholders with a poor credit history, touting a high approval rate even for people without a bank account. You’ll also get a $51 funding voucher applied for all new accounts, essentially getting you a $200 credit line for $149.
The card is best if you don’t want to go through a credit check. OpenSky claims that 2/3 of cardholders receive a 41+ point credit score improvement after making 3 on-time payments.
Cardholders are routinely considered for an increased credit line after six months. You’ll also get free monthly access to your FICO score in OpenSky’s mobile application.
If you want to earn cash back while building your credit score, go for the Capital One Quicksilver Secured Cash Rewards Credit Card, with its 1.5% cash back on all purchases.
We love that this card allows business owners who are looking to build their business credit qualify for a business card. Bank of America will also consider cardholders for the unsecured card version in the future. Additionally, the card comes with Quickbooks, travel and emergency services — with no annual fee.
*The information for the Bank of America Business Advantage Unlimited Cash Rewards Secured Business Credit Card has been collected independently by The Points Guy. The card details on this page have not been reviewed or provided by the card issuer.
This card is a solid option for small business owners who have little to no business credit.
If you’re a new business owner that has had trouble qualifying for a business card, consider adding this secured card to your wallet. It comes with no annual fee, earns unlimited 1.5% cash back on all purchases and offers up to $100,000 in travel accident insurance.
If you’re looking for a similar business card but don’t need a secured card, consider the Bank of America® Business Advantage Unlimited Cash Rewards Mastercard® credit card. It comes with a long introductory APR for new purchases and balance transfers, a welcome offer and elevated rewards earning for members of the Bank of America’s Preferred Rewards for Businesses program.
This no annual fee card is a great way to build/rebuild your credit and has some unique perks like the ability to graduate to a non-secured version and earn rewards.
The Discover it® Secured Credit Card is a great option for people who are looking to build/rebuild their credit history or have had trouble getting approved for a standard credit card.
“The Discover it® Secured Credit Card helped me build my credit when I had none. Without this card, I would not be able to qualify for any of the amazing credit cards I have now.” - Christina Ly, credit cards writer.
If you like Discover but already have a solid credit history, consider the Discover It® Cash Back. The unsecured version earns a rotating 5% cash back every quarter you enroll in a new category (up to $1,500 each quarter, then 1% after) and still features no annual fee.
What is a secured credit card?
A secured credit card is a card that requires a security deposit from the cardholder when the account is opened. This security deposit is usually refundable and determines your initial credit limit. Secured credit cards are often used by consumers without credit history or with low credit scores and can be useful for building or repairing credit.
Who should get a secured credit card?
Secured credit cards are best used for building or repairing credit. If you don’t have strong enough credit to be approved for most beginner credit cards, and you don’t have any trusted friends or family members that are willing to add you to their account as an authorized user, a secured credit card can be an assured way to getting a credit card and working to improve your credit score.
You should see a secured credit card as a stepping stone to an unsecured (or traditional) rewards credit card. If you can already get approved for an unsecured rewards credit card that doesn’t have high fees, you won’t need to consider getting a secured credit card.
How we rate
How to maximize secured credit cards
Find out what you value in a card
Like their unsecured counterparts, secured credit cards vary in the perks they offer, the earnings rates they provide and more. Maybe you want a card that offers cash back on every purchase; maybe you just want a card that will help you build smarter spending habits. There are secured cards for both camps — especially the latter, since secured cards are generally for those with a poor or limited credit history.
Make your payments on time and in full
The biggest key to a secured credit card, or any card: Pay it off on time and in full, every month. Using good spending habits is the number one key to demonstrating value to your card issuer; if you can do that, you’ll be on to an unsecured card in a matter of months, which is when you can really start squeezing value out of your credit cards.
Move to an unsecured card
Your final step: Finding an unsecured, “regular” card that fits your needs and lifestyle. After six or so months of good spending habits, most of the cards above will automatically move you to the unsecured version of the card, meaning you’ll get your security deposit back and maybe even enjoy additional benefits. Once you’ve done that, you can start looking at other cards on the market and continue filling out your wallet with valuable cards.
How to choose the best secured card
- Most secured credit cards do not offer a sign-up bonus but do offer the ability to earn rewards, like cash back. Knowing this, you can whittle down your options to a card that'll help you establish or build up your credit while still taking advantage of reward-earning capabilities.1Sign up bonus
- Some secured credit cards come with an annual fee; the good news is that those that require cardholders to pay this fee often charge a lower figure than what you'd pay with non-secured cards — some of which start around $95 and can cost upwards of $600 to keep.2Annual fee
- If you're focused on establishing or building credit, earning rewards in bonus categories may take a backseat while you work to achieve your financial goals. Even so, there are secured credit cards that offer the ability to earn cash back in categories like travel.3Bonus categories
Pros + cons of secured cards
Pros
- Some secured cards do not require a credit pull
- Most secured cards do not feature an annual fee, making them ideal for budget-minded people
- Secured credit cards can help you build up your credit score
Cons
- Secured cards do not offer an immediate fix if you've got no or bad credit, the process takes time
- Some secured cards don't feature earning categories so you can't build up cash back, points or miles with them
Frequently asked questions
Secured credit cards are similar to regular “unsecured” cards except they require a security deposit from cardholders, which then allows issuers to extend a line of credit that’s usually equal to your deposit. In most cases, you give a security deposit of $500 and you’ll receive a monthly credit limit of $500.
Same as any other card: Fill out your financial information and you’ll hear back from the issuer promptly. The good news is that secured cards have a very high approval percentage.
Secured credit cards are designed for people with poor or limited credit history. If you pay off your secured card on time, your credit score will almost certainly go up, and in most cases you can move from a secured card to a more valuable unsecured card in a matter of months.
Secured credit cards require a security deposit for use; unsecured cards don’t, but require a stronger credit score and credit history for approval. Unsecured cards also typically come with stronger earnings rates and more benefits.
The question of which secured card is best depends on what you’re looking for in a card. Some secured cards offer higher earnings rates and more travel perks, while others will extend you a higher credit limit or offer more tools to track your finances. We think the cards listed above are the best options on the market.
The same way you build credit with an unsecured card: Make your monthly payments in full, on time, every time. Your credit score will naturally increase, and you’ll also be building good financial habits for when you get off of your secured card and enter the brave new world of credit card points and miles.