Secured credit cards are the most accessible path to building or rebuilding credit. By requiring a refundable deposit, they minimize issuer risk while giving you a real credit card that reports to all three bureaus.
How Secured Cards Work
You provide a security deposit (typically $200-$500) that usually equals your credit limit. Use the card responsibly, pay on time, and after 6-12 months, many issuers will return your deposit and upgrade you to an unsecured card.
Top Secured Cards
Discover it Secured
The best secured card with rewards:
- Annual fee: $0
- Deposit: $200-$2,500
- Rewards: 2% at gas and restaurants (up to $1,000/quarter), 1% everywhere else
- Cashback Match: Discover matches all cash back first year
- Graduation: Automatic review after 7 months
Capital One Platinum Secured
- Annual fee: $0
- Deposit: $49, $99, or $200 for $200 credit line
- Features: Potential for higher credit line without additional deposit
- Graduation: Regular reviews for upgrade
Bank of America Customized Cash Secured
- Annual fee: $0
- Deposit: $200-$5,000
- Rewards: 3% in category of choice, 2% grocery/wholesale, 1% everything else
Chime Secured Credit Builder
- Annual fee: $0
- Unique feature: Move money from Chime Spending Account to use as your limit
- No credit check: Doesn't require traditional credit check
OpenSky Secured Visa
- Annual fee: $35
- Deposit: $200-$3,000
- Unique feature: No credit check required
- Best for: Those with very damaged credit who can't qualify elsewhere
Choosing a Secured Card
Prioritize No Annual Fees
Most secured cards should have no annual fee. Only consider fee cards if you can't qualify for no-fee options.
Look for Graduation Paths
Choose cards that automatically review for upgrade to unsecured status.
Consider Rewards
Discover it Secured offers the same rewards as their regular cash back card—rare for secured cards.
Check Credit Bureau Reporting
Ensure the card reports to all three major bureaus (Experian, TransUnion, Equifax).
Using Secured Cards Effectively
Keep Utilization Low
Use less than 30% of your credit limit—ideally under 10%. A $200 limit means keeping balances under $60, ideally under $20.
Pay on Time, Every Time
Payment history is 35% of your credit score. Set up autopay to never miss a payment.
Pay in Full
Avoid interest charges by paying the full balance each month.
Use Regularly
Make small purchases monthly to keep the account active and build history.
Timeline for Building Credit
- 3 months: Account appears on credit reports
- 6 months: Eligible for some unsecured cards
- 6-12 months: Many secured cards offer graduation review
- 12+ months: Established history opens more options
After Secured Cards
Once you've built credit, you can:
- Graduate to an unsecured card from the same issuer
- Apply for entry-level rewards cards
- Keep the secured card open for credit history length
Building credit through secured cards is the first step toward strong credit health and access to premium rewards cards in the future.
