Best Secured Credit Cards

A secured credit card requires a cash deposit — typically $200–$500 — which becomes your credit limit. Used correctly, it builds your credit profile just as effectively as any regular card, and many graduate to unsecured after 12–18 months of good use.

What to Look For in a Secured Card

Not all secured cards are worth having. Prioritize these features:

• Reports to all three bureaus: Non-negotiable. A card that only reports to one bureau builds partial credit at best.
• No or low annual fee: Some secured cards charge $75–$99/year, which eats into your deposit's value.
• Clear graduation path: The card should offer a defined process for converting to unsecured and returning your deposit.
• Reasonable APR: Since you should be paying in full monthly, APR matters less — but below 25% is reasonable for this category.

Top Options for Different Situations

Discover it Secured: No annual fee, 2% cash back on gas and restaurants, 1% on everything else. Automatically reviews for upgrade after 7 months. Reports to all three bureaus. One of the best secured cards available.

Capital One Platinum Secured: No annual fee. Some applicants qualify for a $200 limit with only a $49 or $99 deposit. Reviews for unsecured upgrade after 6 months. Good option if you can't commit to a large deposit.

Chime Secured Credit Builder: No minimum deposit, no APR (requires a Chime checking account). Works differently from traditional secured cards — your balance must be manually set each month. Useful for people building from scratch who want a low-friction option.

OpenSky Secured Visa: No credit check required. $35 annual fee. Good for people who've been denied a Discover or Capital One card due to serious derogatory history. The lack of a credit check means anyone can open it.

How to Use It Correctly

1. Use the card for small recurring purchases — gas, a streaming subscription
2. Pay the statement balance in full before the due date every month
3. Keep your balance below 10% of the limit when the statement closes
4. Don't apply for other new credit simultaneously — focus on this one card for 12 months

Graduating to Unsecured

After 12–18 months of on-time payments with low utilization, most secured card issuers will offer to upgrade your account to an unsecured card and return your deposit. When this happens, don't close the old account — ask to keep the account open as an unsecured product. Closing it reduces your available credit and account history.

See also: How to Graduate From a Secured Card | Secured Card Planner Tool