November 11, 2024: If you need a secured card to help build or rebuild your credit and start searching online, you’ll find that there are plenty of really bad secured credit card products. Many of these cards are designed to make money for the banks by charging high fees and few cards make it clear how to get your deposit returned once your credit improves.
In this article, we’ll show you the best secured credit cards available that have no annual fees, relatively low deposit requirements, and offer a path to getting an unsecured card and receiving your deposit back.
In this article…
Our list of best secured credit cards in 2024
Here are the best secured credit cards we found that offer no annual fee and a path to getting an unsecured credit card.
- Discover it® Secured Credit Card. Available even if you have no credit score. Offers cash back rewards and a clear path to getting your deposit back.
- Platinum Secured Credit Card from Capital One. Low deposit requirement. You can check for pre-approval with no impact to your credit, and no foreign transaction fees.
- U.S. Bank Altitude Go® Secured Visa® Card. Higher deposit requirement, but offers rewards with bonus rewards on dining, grocery stores, and gas.
- U.S. Bank Cash+® Secured Visa® Card. Cash back rewards with bonus rewards in useful categories that you choose. Higher deposit requirement.
- BankAmericard® Secured Credit Card. Good choice for U.S. Bank customers who have a checking or savings account.
Editor’s pick: Discover it® Secured Credit Card
For most people, we think that the Discover it® Secured Credit Card is the best secured credit card. Here’s why:
- No annual fee. The Discover it® Secured Credit Card has no annual fee.
- Low deposit requirement. The minimum deposit requirement on the Discover it® Secured Credit Card is $200, which is lower than other cards that earn rewards.
- Pre-approval with no impact to your credit score. Discover lets you check for pre-approval, which won’t impact your credit score.
- Available with no credit score. If you’re looking for a secured card because you have no credit history, the Discover card likely offers good odds of approval. Discover explicitly states that you can be approved with no credit score.
- Clear path to getting your deposit back. Discover spells out how you can get your deposit back in painstaking detail. While other banks promise to start reviewing your account, Discover tells you exactly what you need to do.
- Decent rewards on a secured card. Rewards are a secondary consideration, but the Discover it® Secured Credit Card actually offers decent rewards. Plus you’ll get your rewards matched dollar-for-dollar in your first year.
We’re confident in saying that any of the cards on this list is a great secured credit card, but we think that the Discover it® Secured Credit Card is the best secured credit card for most people.
More about the best secured credit cards
Here’s a bit more about each of the best secured credit cards that made our list.
Discover it® Secured Credit Card: Rewards and a very clear path to getting your deposit back
The Discover it® Secured Credit Card is the best secured credit card with the clearest path to getting your deposit back. On its landing page, Discover spells out exactly how you can get your card converted to an unsecured card (and get your deposit back) within seven months.
In addition, the card offers cash back rewards on everything your purchases and a dollar-for-dollar cash back match in the first year, meaning you’ll earn at least 2% cash back on everything you put on the card in your first year.
For most people, the Discover it® Secured Credit Card is probably the best option.
Annual fee: $0
Minimum deposit: $200.
All information about the Discover it® Secured Credit Card has been collected independently by cardsandpoints.com.
The Discover it® Secured Credit Card offers rewards, pre-approval with no impact to your credit score, and does not require any credit history to apply for the card.
How the card helps you build credit
- Reporting to the three credit bureaus. Discover reports your account history to the three major credit bureaus, so using your secured card responsibly can help you improve your credit.
- Automatic monthly reviews starting in your seventh month. Beginning in month seven of having this card, Discover will review your credit report and account status monthly. If you qualify, Discover will convert your card to an unsecured card and refund your deposit.
- Higher credit limit with higher deposit. You must have a minimum $200 deposit to get this card, but your credit limit will be equal to your deposit. If you deposit more money and qualify for a higher credit limit, you can get a limit of up to $2,500.
- Free FICO® Credit Score. Receive your FICO® Credit Score for free, based on your TransUnion® credit report, just for being a cardmember.
How to get your deposit back
Monthly reviews. Starting with your seventh month of being a card member, Discover will review your account monthly. The bank will give you your deposit back if:
- You’ve made all payments on time for the last six months on your Discover account.
- Your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies in the six months prior to the review.
- Your Discover card is not closed, revoked, suspended, subject to a tax levy, lost/stolen or otherwise in a “prohibited” status at the time of the review.
You will also receive your deposit back if you close your account.
Rewards
- 2% at gas stations and restaurants
on up to $1,000 in combined purchases each quarter. - 1% on all other purchases.
Rewards are earned as cash back and Discover will match all of your cash back you earn, dollar-for-dollar at the end of your first year, automatically.
Platinum Secured Credit Card from Capital One: Low security deposit and no foreign transaction fees
If you want to put down the least amount of a deposit, the Platinum Secured Credit Card from Capital One can be a good choice. The card’s advertised minimum deposit requirements are $49, $99, or $200. That conceivably means that you could be issued a credit line that is larger than your deposit—a relative rarity among secured credit cards.
The card also offers no foreign transaction fees and you can check for pre-approval with no impact to your credit score through Capital One’s website. Finally, although it is not a benefit of this card, I’ve found that CreditWise from Capital One is a great tool to keep tabs on your credit.
Annual fee: $0
Foreign transaction fee: None
Minimum deposit: $49, $99, or 200 for a minimum credit line of $200.
All information about the Platinum Secured Credit Card from Capital One has been collected independently by cardsandpoints.com.
The Platinum Secured Credit Card from Capital One offers a three-tier security deposit, which could get you into a secured card with as little as a $49 deposit. The card is one of the rare secured credit cards that does not charge a fee for foreign transactions.
How the card helps you build credit
- Reporting to the three credit bureaus. Capital One will report your credit line, balance, and account history to the three major credit bureaus. When you pay on time, this helps you build your credit. And you won’t pay any interest as long as you pay your balance in full every month.
- Check for pre-approval. Capital One lets you check for pre-approval before you apply. Checking for pre-approval will not impact your credit score.
- Automatic credit line reviews. You’ll be considered for a higher credit line automatically starting six months from opening your account.
- Raise your credit line by depositing more. You can raise your credit line (up to a maximum of $1,000) by making an additional deposit.
How to get your deposit back
Upgrade to an unsecured card. Once you’ve built your credit history and qualify for an unsecured credit card, Capital One can upgrade your card to a standard, unsecured credit card and return your deposit.
You will also receive your deposit back if you close your account.
U.S. Bank Altitude Go® Secured Visa® Card: Rewards, but you’ll want a U.S. Bank checking account to take advantage
The U.S. Bank Altitude Go® Secured Visa® Card has a higher minimum deposit ($300) than some of the other cards on our list, but that higher minimum deposit gives you access to rewards. With this card, you can earn points for your eligible purchases:
- 4x points on dining, takeout, and restaurants delivery
- 2x points on streaming services, at grocery stores and at gas stations
- 1x points on other purchases
Be aware that you’ll need to have a U.S. Bank deposit account (checking or savings) in order to get one cent per point out of your rewards. If you don’t have or want a U.S. Bank checking or savings account, but like rewards, consider the U.S. Bank Cash+ card or the Discover card instead.
Annual fee: $0
Foreign transaction fee: 3%
Minimum deposit: $300.
All information about the U.S. Bank Altitude Go® Secured Visa® Card has been collected independently by cardsandpoints.com.
The U.S. Bank Altitude Go® Secured Visa® Card is a secured card that offers rewards, with bonus rewards on dining, groceries, and gas stations/EV charging. The downside to the card is a higher initial deposit requirement.
How the card helps you build credit
- Reporting to the three credit bureaus. U.S. Bank will report your credit line, balance, and account history to the three major credit bureaus. When you pay on time, this helps you build your credit. And you won’t pay any interest as long as you pay your balance in full every month.
- Automatic consideration for an unsecured card. U.S. Bank monitors your credit report and account activity. If you qualify, U.S. Bank may automatically graduate you to an unsecured Altitude Go Visa Signature card and refund your deposit.
- Set your credit limit. You set your own credit limit by the size of your security deposit. You can deposit from $300 to $5,000.
How to get your deposit back
Upgrade to an unsecured Altitude Go card. U.S. Bank will monitor your credit report and account status. If you qualify, U.S. Bank will convert your account to an unsecured U.S. Bank Altitude Go Visa Signature card and refund your deposit.
You will also receive your deposit back if you close your account.
Rewards
- 4x on dining, takeout, and restaurant delivery
on your first $2,000 each quarter. - 2x at grocery stores and gas stations/EV charging
excluding discount stores/supercenters and wholesale clubs. - 2x on streaming services.
- 1x on all other eligible purchases.
Points are generally redeemable for cash back at 0.8 cents per point. If you redeem points for a deposit into a U.S. Bank account, you can redeem them for one cent per point.
U.S. Bank Cash+® Secured Visa® Card: Cash back rewards in categories you choose
Like the other U.S. Bank card on this list, the U.S. Bank Cash+® Secured Visa® Card is essentially a secured version of the excellent U.S Bank Cash+® Visa Signature® Card, the card that you’ll get once U.S. Bank “graduates” you to an unsecured credit card.
You’ll need to put down a minimum of $300 to secure your credit line, but if you can come up with the cash, you’ll get a card that offers a secured credit line with excellent cash back rewards.
The U.S. Bank Cash+® Secured Visa® Card earns 5% cash back on your first $2,000 spent in combined purchases in two eligible categories you choose. Eligible categories include fast food, electronics stores, TV, internet and streaming services, home utilities, cell phone providers, furniture stores, department stores, ground transportation, gyms/fitness centers, select clothing stores, sporting goods stores, and move theaters. You’ll also earn 2% cash back in one everyday category you choose (grocery stores, gas & EV charging stations, or restaurants). And you’ll earn 1% on other purchases.
Annual fee: $0
Foreign transaction fee: 3%
Minimum deposit: $300.
All information about the U.S. Bank Cash+® Secured Visa® Card has been collected independently by cardsandpoints.com.
The U.S. Bank Cash+® Secured Visa® Card offers cash back rewards, with bonus rewards in categories that likely match where you spend money. Like other U.S. Bank secured cards, the Cash+ secured has a higher initial deposit requirement.
How the card helps you build credit
- Reporting to the three credit bureaus. U.S. Bank will report your credit line, balance, and account history to the three major credit bureaus. When you pay on time, this helps you build your credit. And you won’t pay any interest as long as you pay your balance in full every month.
- Automatic consideration for an unsecured card. U.S. Bank monitors your credit report and account activity. If you qualify, U.S. Bank may automatically graduate you to an unsecured U.S. Bank Cash+® Visa Signature® Card and refund your deposit.
- Set your credit limit. You set your own credit limit by the size of your security deposit. You can deposit from $300 to $5,000.
How to get your deposit back
Upgrade to an unsecured Cash+ card. U.S. Bank will monitor your credit report and account status. If you qualify, U.S. Bank will convert your account to an unsecured U.S. Bank Cash+ card and refund your deposit.
You will also receive your deposit back if you close your account.
Rewards
- 5% cash back on two categories you choose each quarter.
Eligible categories include fast food; home utilities; TV, internet, and streaming; department stores; cell phone providers; electronic stores; sporting good stores; gyms/fitness centers; ground transportation; movie theaters; furniture stores; and select clothing stores. - 2% cash back on one everyday category you choose.
Eligible categories include grocery stores and grocery delivery; restaurants; and gas stations and EV charging stations. - 1% cash back on all other eligible purchases.
Rewards are earned as cash back. You’ll get full value for your rewards if you redeem them for a statement credit or deposit into a U.S. Bank checking account.
BankAmericard® Secured Credit Card: A good choice for Bank of America customers
The BankAmericard® Secured Credit Card is a basic secured credit card with no annual fee. The card doesn’t offer rewards, but if learning about credit and managing your finances appeals to you, the financial education resources that Bank of America offers alongside the card might be more valuable than rewards anyway.
The card also offers a $200 minimum credit line and credit lines up to $5,000, so it’s flexible enough to be your card whether you want to put down a minimum deposit or you need a card with a larger credit line. Bank of America will periodically review your account to see if you qualify to convert to an unsecured credit card and get your deposit back. Once you’ve built your credit enough to convert to an unsecured credit card, you’ll probably want to shop around for a better card.
Annual fee: $0
Foreign transaction fee: 3%
Minimum deposit: $200
All information about the BankAmericard® Secured Credit Card has been collected independently by cardsandpoints.com.
The BankAmericard® Secured Credit Card is a good choice if you have a checking or savings account with Bank of America because Bank of America considers your other accounts with the bank when deciding when to return your deposit.
How the card helps you build credit
- Periodic reviews. Bank of America will periodically review your account, overall credit history, income, ability to pay and banking relationship (such as deposit accounts) to see if you can qualify to have your deposit returned to you.
- Free FICO® Score. Get a free FICO® Score updated monthly for free.
- Access to credit education content. Card membership includes access to Bank of America’s content to help you learn more about credit and budgeting.
How to get your deposit back
Periodic reviews. Bank of America will periodically review your account, overall credit history, income, ability to pay and banking relationship (such as deposit accounts) to see if you can qualify to have your deposit returned to you.
You will also receive your deposit back if you close your account.
What to look for in a secured credit card
There are a ton of secured credit cards that are bad products meant to extract fees out of people wanting to build credit. These predatory products are not designed to help people build a better credit score and transition them into unsecured credit lines. The cards on our list of the best secured credit cards will help you steer clear of these products,
Here’s what we look for in a secured credit card:
- No annual fee. There’s no need to pay an annual fee to have a basic secured credit card.
- A path to an unsecured credit card. Many secured credit cards want to keep you locked in (and keep your deposit) forever. Look for a card that will continuously reevaluate your account based on your current credit and give you an unsecured credit card once you’ve built up a good credit rating.
- Tools to help you understand your credit. If you are trying to build your credit with a secured card, having tools that give you free access to your credit report and credit score is useful so that you can see your progress.
- Rewards. Most secured credit cards don’t offer cash back rewards or points, but some do. All other things equal, having access to rewards on a secured card is a nice perk.
All of the secured cards in our list have no annual fee and offer a path to getting an unsecured credit card (and getting your deposit back.) Most have tools to help you keep tabs on your credit and many offer rewards.
How do I get my deposit back?
With all of the cards on our list, you will get your security deposit back if one of two things happens:
- You pay your balance in full and close your credit card account. If you leave as a customer, you’ll get your security deposit back, provided your account is paid in full.
- Your secured card is upgraded to an unsecured credit card. All of the cards on our list offer a path to getting an unsecured credit card.
Other cards we considered, but didn’t meet our criteria
You might find other lists of secured cards on the internet that include products we don’t. Anything with an annual or monthly fee got cut, but some commonly-promoted no-annual-fee secured credit cards didn’t make the list. Here are a few of the secured cards that didn’t make the cut and why:
- Citi® Secured Mastercard®. The secured card does not offer a path to converting to an unsecured card and getting your deposit back.
- U.S. Bank Secured Visa® Card. U.S. Bank has many great secured credit cards, but this one doesn’t make an upgrade path to an unsecured credit card obvious, so we left it off our list.
Frequently asked questions
Is it better to have more secured credit cards?
In most cases, you’ll do better having just one secured credit card with a higher limit. If you need more spending power and have additional money for a deposit, contact your card issuer to see if you can put down an additional deposit to get a higher limit.
What happens if I max out my secured credit card?
If you spend up to the limit of your secured credit card, it will hurt your credit score—at least until you’ve paid off your balance. A large part of your credit score comes from the amount of available credit you are using relative to the total available credit you have. A good rule of thumb is to try to keep your balances below 30% of your available credit.
Will I pay interest on balances with secured credit cards?
Yes. Just like any other credit card, you will pay interest if you carry a balance month-to-month and you’ll pay fees if you miss payments. Remember, you do not need to carry a balance or pay interest to build credit. In fact, you’ll build a solid credit history the fastest if you pay off your card in full by the due date every month.
