Best Secured Credit Cards to Build or Rebuild Credit

If your credit score is low or you have no credit history at all, it may be hard to get approved for a credit card. These cards need a security deposit, but they function similarly to other credit cards and assist you in building a solid payment history. In this guide, we’ll explore the best-secured credit cards available, how to use them wisely, and when to upgrade to an unsecured card.

What Is a Secured Credit Card and How Does It Work?

Credit cards that calls for a security deposit that is refunded as collateral are known as secured credit cards. This deposit typically determines your credit limit, meaning if you deposit $200, your credit limit is usually $200 (though some issuers may offer a higher limit over time). Secured credit cards, as opposed to prepaid debit cards, notify the three main credit bureaus of your payment history—Experian, Equifax, and TransUnion—helping you establish or rebuild your credit score.

How It Works: Step-by-Step

Apply for the card – Most issuers check your credit, but some offer no-credit-check options.
You must make a security deposit—typically $200 to $500, though some allow deposits as low as $49.
You can use the card for regular transactions, bill payment, and purchase just like you would with any other credit card.
Pay your balance on time – On-time payments improve your credit score over time.
Get your deposit back – Your deposit is returned if you switch to an unsecured card or terminate your account with no balance.

Who Should Get a Secured Credit Card?

✔️ First-time credit users – Those with little or no credit history

✔️ People with bad credit – Those looking to rebuild after financial setbacks

✔️ Anyone denied for unsecured credit cards – If you’re struggling to get approved, a secured card is an easier entry point

Key Takeaway: A secured credit card is a credit-building tool that requires a deposit but functions like a regular credit card. It can raise your credit score and make you eligible for future financial opportunities if you utilize it sensibly.

Top Secured Credit Cards for 2025: Features and Benefits

Building or repairing your credit requires selecting the appropriate secured credit card. The best-secured cards offer low fees, credit bureau reporting, and even rewards programs. Below are some of the top secured credit cards in 2025, along with their key features and benefits.

Discover it® Secured Credit Card.

Best for: Earning rewards while building credit

Since there is no yearly charge, it is an affordable choice.
2% cash back on eating out and gas (up to $1,000 every quarter) + 1% cash back on all other purchases.
Automatic review for an upgrade to an unsecured card after seven months
Reports to all three major credit bureaus
Refundable security deposit starting at $200

Capital One Platinum Secured Credit Card

Best for: Low initial deposit requirements

No annual fee, keeping costs low
Requires a deposit as low as $49, $99, or $200, based on creditworthiness
Offers potential credit limit increases with responsible use
Reports to all three major credit bureaus
It is helpful for overseas purchases because there are no foreign transaction costs.

Citi® Secured Mastercard®

Best for: Those seeking a straightforward credit-building card

It is an affordable option because there is no annual cost.
Requires a minimum deposit of $200
No rewards program, but a strong option for credit rebuilding
Reports to all three major credit bureaus
Provides fraud protection and security features

OpenSky® Secured Visa® Credit Card

Best for: Easy approval with no credit check

No credit check is required, making it ideal for those with poor or no credit history
Need a refundable security deposit of at least $200
Reports to all three major credit bureaus
$35 annual fee, which is higher than some other options
No automatic upgrade to an unsecured card, but it offers credit-building potential

The Bank of America® Secured Credit Card with Customized Cash Rewards

Best for: Earning cashback rewards while building credit

No annual fee, making it a good long-term option
Provides 1% cashback on all other transactions, 2% cashback on supermarkets and wholesale clubs, and 3% cashback on a selected category.
Requires a minimum deposit of $200
Reports to all three major credit bureaus
Possibility of switching to an unsecured card through responsible usage

Key Takeaway: The best-secured credit cards in 2025 offer low fees, credit-building opportunities, and, in some cases, rewards programs. Your financial objectives will determine which card is best for you, including low deposit requirements, cashback incentives, and simple approval. Many secured credit cards offer a way to gradually transition to an unsecured credit card with appropriate use.

Tips for Selecting the Best Secured Credit Card for Your Requirements

Not all secured credit cards are the same. While they all help build or rebuild credit, some offer lower fees, better rewards, or more flexibility than others. Your purchasing patterns, objectives, and financial status all play a role in selecting the best secured credit card. Here are some things to think about when choosing.

Security Deposit Requirements

An upfront security deposit, which serves as your credit limit, is required for secured credit cards.
Deposit requirements vary by issuer, typically ranging from $200 to $500, but some cards allow lower deposit amounts based on your creditworthiness.
Your credit use ratio may be improved by raising your credit limit, which is frequently the consequence of a larger deposit.
If you need a low deposit option, some cards, like the Capital One Platinum Secured, allow deposits as low as $49 for eligible applicants.

Credit Bureau Reporting

A secured credit card must record your payment activities since its main objective is to help you build or restore credit.
Look for a card that reports to all three major credit bureaus—Experian, Equifax, and TransUnion.
Some secured cards do not report to all bureaus, which can limit their effectiveness in improving your credit score.

Fees and Costs

The yearly, processing, or monthly maintenance costs associated with many secured credit cards mount up over time.
Some of the best-secured cards, like the Discover it® Secured and Capital One Platinum Secured, charge no annual fees.
Look for a card that doesn’t charge international transaction fees if you want to travel, as some issuers charge up to 3% for each transaction.
Make sure the security deposit is refundable once you close the account or upgrade to an unsecured credit card.

Interest Rates (APR)

Credit cards with security may have higher interest rates (APRs), frequently exceeding 25%, than unsecured credit cards.

The greatest method to prevent interest charges and maintain the affordability of your credit-building efforts is to pay off your debt in full each month.
Secured credit cards are rarely offered with low introductory annual percentage rates (APRs).

Rewards and Benefits

While rewards are not the main focus of secured credit cards, some offer cashback programs.
Some secured cards provide free credit score monitoring, which can help track progress as you build your credit.

Upgrade Path to an Unsecured Card

After raising your credit score, the ultimate objective of utilizing a secured credit card is to be eligible for an unsecured credit card.
Some issuers offer automatic account reviews after several months to determine if you qualify for an upgrade.
Cards like Discover it® Secured and Capital One Platinum Secured allow automatic upgrades, which means your security deposit is refunded, and you can transition to a regular credit card.

Key Takeaway: The best-secured credit card for you depends on your financial goals, deposit ability, and spending habits. A good, secured card should have low fees, report to all three credit bureaus, and offer a clear path to an unsecured card. Choosing wisely can help you build credit faster and unlock better financial opportunities in the future.

Clever Ways to Use a Secured Card to Establish Credit

Using secured credit cards responsibly is the key to improving your credit score. Consistent, smart financial habits can help you transition to an unsecured card faster and boost your overall creditworthiness.

Make On-Time Payments

The most important component of your credit score is your payment history.
To prevent late penalties and bad credit record marks, always pay at least the minimum amount by the due date.
By establishing automatic payments or reminders, missed payments can be prevented.

Keep Credit Utilization Low

The percentage of your credit limit that you use is known as credit usage.
Maintaining your balance below 30% of your credit limit is an indication of responsible credit management.
If possible, pay off your full balance each month to reduce credit utilization and avoid interest charges.

Use the Card Regularly, But Wisely

Making small, regular purchases and paying them off helps establish a positive credit history.
A high use rate can damage your credit score, so try to refrain from max out your card.
Using the card for essentials like gas or groceries can make payments easier to manage.

Monitor Your Credit Score and Report

Regularly checking your credit score helps track progress and identify areas for improvement.
Finding mistakes or fraudulent activities that could lower your score can be aided by reviewing your credit report.
Many secured credit cards offer free credit score monitoring as a perk.

Plan for an Upgrade to an Unsecured Card

After six to twelve months of responsible use, check if your issuer offers an upgrade option.
Some cards automatically review your account for eligibility, while others require a request.
Your deposit is returned and your credit limit may rise once you are granted an unsecured card.

Key Takeaway: Building credit with a secured card requires consistency, responsible spending, and timely payments. Smart usage not only improves your credit score but also prepares you for better financial opportunities, such as unsecured credit cards and loans with lower interest rates.

When and How to Upgrade to an Unsecured Credit Card

One of the most important steps in establishing long-term credit is switching from a secured to an unsecured credit card. Knowing when you’re ready and how to transition smoothly can help you maximize your financial opportunities.

Signs You’re Ready to Upgrade

At least six months of on-time payments show responsible credit use.
A lower credit utilization ratio (below 30%) indicates good financial management.
An improved credit score, typically in the mid-600s or higher, increases approval chances.
Some issuers automatically review accounts for upgrades, while others require a request.

Steps to Upgrade Your Secured Card

Contact your card issuer to ask about upgrade eligibility and account reviews.
Your deposit will be returned if your secured card qualifies to become an unsecured card.
If your issuer does not offer an upgrade, consider applying for a new unsecured card with another provider.
Keep your oldest account open to maintain your credit history, even if you switch to a new card.

What to Do After Upgrading

Continue making on-time payments to maintain and improve your credit score.
Keep credit utilization low to strengthen your financial standing.
Avoid unnecessary new credit applications to prevent multiple hard inquiries on your report.

Key Takeaway: Upgrading to an unsecured credit card requires consistent, responsible use of your secured card. You can maintain a solid credit profile and make a smooth transfer by keeping an eye on your credit and being aware of your issuer’s policies.

Frequently Asked Questions (FAQs)

Can someone with poor credit receive a secured credit card?

Indeed! People with poor or no credit history are the target market for secured credit cards. Some options, like OpenSky®, don’t require a credit check.

How much should I deposit on a secured credit card?

A $200 minimum deposit is required for the majority of secured cards; however, a larger deposit could raise your credit limit.

Will my credit score rise if I use a secured credit card?

Yes, your score should improve over time as long as you make on-time payments and keep your credit utilization low.

Can I get my deposit back?

Indeed! When you end the account with no balance owed or switch to an unsecured card, your deposit is fully refunded.

What happens if I stop using my secured credit card?

If you don’t use your card, the issuer may close it due to inactivity, which could impact your credit score. It’s best to make small regular purchases and pay them off.

Additional Resources

🔗 OpenSky® Secured Visa

🔗 FICO Credit Score Basics

Conclusion

When utilized properly, a secured credit card can be an effective tool for repairing or establishing credit. You may improve your credit score and eventually move up to an unsecured card by selecting the appropriate card, paying your bills on time, and maintaining a low credit utilization rate.