If you have bad credit, it might seem nearly impossible to get approved for a credit card. Secured credit cards can play a key role in helping you build back your credit. That being said, there’s a plethora of them out there, which one should you pick?
Secured credit cards are those which require you to put in a cash deposit, which is usually equal to the credit card’s limit. When choosing a secured credit card, it's important to consider your financial situation and credit goals. Look for a card with features that align with your needs, whether a low deposit requirement, a high credit limit, or a rewards program.
Dive into the top 10 secured credit cards with us and see which secured credit looks like a good option for your needs and fits your financial planning.
1. Bank of America® Customized Cash Rewards Secured Credit Card
The Bank of America secured card presents an excellent opportunity for individuals looking to enhance their credit profile. With zero annual fees and the added benefit of earning rewards, this card offers a promising path for building creditworthiness. You also have the potential for an upgrade to an unsecured card. Here are some of the card details:
- Annual Fee: $0
- APR: 27.99% (variable)
- Minimum refundable security deposit - $200
- Maximum refundable security deposit - $5000
2. U.S. Bank Cash+® Visa® Secured Card
This secured credit card from U.S. Bank also allows you to earn several rewards which is a rare feature in secured credit cards. It also allows you to choose your own bonus journey from a list of several common spending areas.
- Annual Fee: $0
- APR: 29.99% (variable)
- Minimum refundable security deposit - $300
- Maximum refundable security deposit - $5000
3. Chime Credit Builder Visa® Credit Card
To be eligible for the Chime Credit Builder Visa® Credit Card, you must be a Chime banking customer. However, once you become a customer, you'll enjoy numerous benefits: there's no minimum deposit needed, no annual fees or interest charges, and no credit check required. You can also automate your payments, ensuring you never miss a due date, making it an excellent choice for building your credit.
- Annual Fee: $0
- APR: 0%
- Minimum refundable security deposit - N/A
- Maximum refundable security deposit - N/A
4. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is also a secured credit card designed to help you build your credit. With this card, you not only get the chance to build or rebuild your credit but also have the option to earn back your deposit and to an unsecured platinum card.
- Annual Fee: $0
- APR: 30.49% (Variable)
- Minimum refundable security deposit - $200
- Maximum refundable security deposit - $1000
5. Self Visa® Secured Card
Those with bad credit or no credit have a special opportunity to build credit histories thanks to the Self Visa® Secured Card. It does not call for a credit check or an upfront security payment like standard secured cards do. However, it does impose additional requirements on you that other secured cards do not.
- Annual Fee: $25
- APR: 29.99% (Variable)
- Minimum refundable security deposit - $100
- Maximum refundable security deposit - N/A
6. Discover It® Secured Credit Card
The Discover It® Secured Credit Card is another credit card that allows you to build credit with no annual fees. They also conduct automatic monthly reviews after 7 months to see if you qualify to upgrade to an 'unsecured' card and get your deposit back.
- Annual Fee: $0
- APR: 28.24% (Variable)
- Minimum refundable security deposit - $200
- Maximum refundable security deposit - N/A
7. PNC Secured Visa® credit card
The PNC Secured Visa® credit card helps you establish, strengthen or build your credit – you can use this card responsibly, and over time it can improve your overall credit score. It has no annual fees but does have a monthly $3 fee.
- Annual Fee: $0
- APR: 23.74% (Variable)
- Minimum refundable security deposit - $300
- Maximum refundable security deposit - $2500
8. OpenSky® Secured Visa® Credit Card
If you are looking to build up your credit from a bad credit score, the OpenSky® Secured Visa® Credit Card is a good option. It doesn’t require a credit check and even people with a credit score of 300-689 are eligible.
- Annual Fee: $35
- APR: 23.39% (Variable)
- Minimum refundable security deposit - $200
- Maximum refundable security deposit - $3000
9. TD Cash Secured Credit Card
The TD Cash Credit Card stands out as a reliable cash-back option. It allows you to personalize your preferred categories for earning higher rewards and doesn't impose a limit on the total rewards you can accumulate.
- Annual Fee: $29
- APR: 27.99% (Variable)
- Minimum refundable security deposit - $300
- Maximum refundable security deposit - $5000
10. Fifth Third Secured Credit Card
Crafted with the intention of aiding individuals in building or restoring their credit scores, the Fifth Third Secured Card serves as a useful tool. Notably, the standout attribute of this card is the ability to accrue interest on the security deposit provided.
- Annual Fee: $24
- APR: 28.99% (Variable)
- Minimum refundable security deposit - $300
- Maximum refundable security deposit - $5000
When choosing a secured credit card, it's essential to assess your financial situation and credit goals carefully. Select the card that best aligns with your needs and fits your long-term financial plans. Remember that responsible credit card usage, timely payments, and staying within your credit limit are key to building a strong credit profile. With consistent efforts and discipline, these secured credit cards can serve as stepping stones towards a brighter financial future.
Bright Builder can also help guide you through the process of building your credit score. Learn more and see how!
FAQs
- What are secured credit cards?
Secured credit cards are those which require you to place a deposit as collateral. The credit limit you get on that credit card is generally the amount of deposit placed.
- Are secured credit cards the same as other credit cards?
Secured credit cards are a bit different than other credit cards. The sole distinction lies in the fact that these cards are secured by a fixed deposit. They are extended to individuals lacking a satisfactory credit history or those who have previously defaulted and possess low credit scores, rendering them ineligible for a standard credit card due to companies' apprehensions of potential default recurrence.
- What are the benefits of secured credit cards?
Secured credit cards offer benefits such as access to credit for individuals with poor or no credit history, a chance to rebuild credit, and the ability to earn interest on the associated fixed deposit.
Recommended Reads:
How To Improve Your Credit Score?: https://www.brightmoney.co/learn/how-to-improve-your-credit-score
What Is A Credit Builder Loan And Its Key Features: https://www.brightmoney.co/learn/what-is-a-credit-builder-loan-and-its-key-features
Is It better To Use Credit Cards Or Student Loans: https://www.brightmoney.co/learn/whats-better-credit-cards-vs-student-loans
