ADVERTISING DISCLOSURE
ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Top 5 March 2024 secured credit cards

The COVID-19 pandemic has made significant changes not only in people's lives and their financial standing but also in the entire financial sector of the U.S. Despite the fact that interest rates of most credit products have dropped, many issuers have become stricter in assessing the creditworthiness of consumers. Getting approved for an unsecured credit card has become more difficult, especially with a bad credit history. But, fortunately, there is a way out - secured credit cards. We have collected the best secured card offers from our partners so that you can get all the benefits of credit cards even during the coronavirus outbreak.

Show more

The offers presented on the page are intended for applicants with limited credit. If you have good/excellent credit, click here to see suitable offers.

#1 credit card

#2 credit card

#3 credit card

#4 credit card

#5 credit card

Capital One Platinum Secured Credit Card Chime Secured Credit Builder Visa® Credit Card Capital One Quicksilver Secured Cash Rewards Credit Card Discover it® Secured Credit Card First Latitude Select Mastercard® Secured Credit Card
apply now apply now apply now apply now apply now
on Capital One's secure website
on Capital One's secure website
on Discover's secure website
Annual Fee
$0
$39.00
Credit Bureaus Reporting
Yes
Yes
Yes
Yes
Yes
Build Credit
Yes
Yes
Yes
Yes
Yes
Credit Pull
Hard Pull
Soft Pull
Hard Pull
See Terms
Soft Pull
Credit Line
Put down a refundable security deposit starting at $49 to get a $200 initial credit line
See terms
Put down a refundable $200 security deposit to get a $200 initial credit line
Credit line will equal your deposit amount, starting at $200
Choose your own fully-refundable credit line - $200 to $2,000 – based on your security deposit.
States Available
Any
Any
Any
Any
Any
apply now apply now apply now apply now apply now
on Capital One's secure website
on Capital One's secure website
on Discover's secure website

Why to choose a
secured credit card FOR BAD CREDIT

Above you can see our top five secured credit cards. Still, you may wonder why you should prefer these cards to general credit cards. Of course, there are unsecured credit cards for bad credit. However, they often charge huge interest and additional fees for activation. As a rule, secured cards come with lower APRs. Some even offer a 0% intro period.

Moreover, applying for a secured card, you have much more chances to get approved. By providing a security deposit, you become a less risky borrower for the issuer. However, it doesn't mean approval is guaranteed for every applicant (unless otherwise stated by the bank), and you will still need to prove some kind of stable income to qualify for a card.

These are just some of the main reasons why secured credit cards are often a better choice than some unsecured offers. To make sure a secured card is what you really need, look at other secured credit cards' advantages:

Credit Card
Secured cards work just like general credit cards and can be used for purchases in a similar way.
High Approval Odds
Being designed for applicants with limited/bad credit, secured cards imply a high approval rate.
Low Rates
No need to overpay for interest and fees. Secured cards offer low APRs and competitive annual fees.
Credit Building
Your account activity will be reported to the major credit bureaus, which can help you build credit.
Refundable Deposit
A security deposit may be just as low as $200. And you can get it back once you upgrade the card.

How do secured
credit cards WORK?

A secured credit card can serve you well on your way of building or rebuilding credit. But how do they actually work? Sometimes this type of card is mistakenly placed on the same footing as prepaid debit cards. In fact, secured cards are credit cards and work accordingly. You can pay with a secured card wherever regular credit cards are accepted. The only difference is a so-called security deposit that you should put in and that serves as a protection for the bank in case you fail to pay. To figure out how to handle a secured credit card properly, follow these three steps:

1.  GET APPROVED FOR THE CARD AND FUND THE DEPOSIT

Once you applied for a chosen secured credit card and got approved, you will need to make a security deposit. Your future credit line will typically be equal to it. Note that the bank will keep your deposit until you decide to cancel your account or until it is switched to an unsecured line of credit. That's why it is very important to choose the right sum to fund.

First of all, read the card terms carefully to find out an initial deposit amount range, as well as when and how you need to make it. While some issuers allow customers to make a deposit only from a checking account, others let them do this using a debit card or other alternative methods. As a rule, you will need to indicate the deposit amount and your bank account/debit card number in the application, and the issuer will charge the deposit right after approval. For example, with the OpenSky® Secured Visa® Credit Card, you can fund your security deposit from your debit card at the time of application, do it at a later date with Western Union®, or mail a check or money order. Anyway, the card will be sent only after the issuer receives the money.

2.  RECEIVE THE CARD AND USE IT RESPONSIBLY

Dealing with the deposit and getting the approved card in the mail is not the last step. Now your main goal is to use it right in order to improve your credit score. Try hard to make at least minimum payments on time. Another important factor is keeping your card credit utilization ratio under 30%. And if you don't want to pay interest, pay off your balance in full each month by the due date. Remember that the issuer has every reason not to return the security deposit if you regularly miss payments. In this case, the bank will start paying the balance you carry using your deposit and may even cancel the card. Besides that, you are going to significantly spoil your scores.

3. SWITCH TO AN UNSECURED CREDIT CARD

If you follow the rules described above, your credit score will be gradually improving. After about 12-18 months on average, there will come the moment when you can get upgraded to an unsecured credit card. Banks' policies on this issue vary. In some cases, after a while, issuers may themselves begin to check the possibility of switching your card to an unsecured one. In other cases, you yourself will have to monitor your credit and ask the bank for an upgrade. It also happens that the bank makes no provision for such an opportunity at all. Then, when your score is good enough, you can simply apply for another issuer's unsecured credit card.

How to choose a secured card to build credit?

Now you know how to get maximum use out of a secured credit card in order to improve your bad score. However, the main question still remains open: "How to choose the right credit card?" Before submitting an application, it is essential to familiarize yourself with the card agreement, including reading the fine print. It will help avoid pitfalls in the future. So, when looking for a secured card, pay attention to the following features in the first place:
Annual Fee
This fee is charged annually for card maintenance. Therefore, the lower, the better.
0% intro APR
A secured card with a 0% intro APR period is a real godsend. Make purchases and pay no interest.
Security Deposit
If you don't have much money, the minimum required deposit amount may be decisive.
Credit Limit Increase
Check if you can provide an additional deposit and ask for a credit limit increase after a while.
Credit Check
Credit checks affect your credit score and may slightly decrease it. No credit check - great!

Let's compare
secured credit cards BY MAIN
FEATURES:

viewing 0-0 of 0
Annual Fee
$0
$29
$35
$36 for first year. Billed $3 per month thereafter
$39.00
$39
$48
$49
0% Intro APR on Purchases
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Ongoing APR on Purchases
30.74% (Variable)
0%
30.74% (Variable)
28.24% Variable APR
25.24% (V)
25.64% (variable)
22.70% Variable
19.24% (V)
19.24% (V)
9.99% Fixed
15.24% (V)
Credit Line
Put down a refundable security deposit starting at $49 to get a $200 initial credit line
See terms
Put down a refundable $200 security deposit to get a $200 initial credit line
Credit line will equal your deposit amount, starting at $200
Choose your own credit line - $200 to $2000 – based on your security deposit
Fund your card with a low $200 refundable security deposit to get a $200 credit line
$200-$3,000, depending on deposit amount
Choose your own fully-refundable credit line - $200 to $2,000 – based on your security deposit.
Choose your own credit line - $200 to $2000 – based on your security deposit
Activate Today with a $200 Minimum Deposit - Maximum $1,000
Choose your own credit line - $200 to $2000 – based on your security deposit
Credit Line Increase
Be automatically considered for a higher credit line in as little as 6 months
See terms
Be automatically considered for a higher credit line in as little as 6 months
No
See Terms*
Get considered for a credit line increase after 6 months, with no additional deposit required
Increase your credit line at any time by adding additional money to your security deposit, up to $3,000.
See website for Details*
See terms*
Increase Your Credit Limit up to $5,000
See Terms*
No Credit Check
No
Yes
No
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Soft Pull
No
Yes
No
No
Yes
Yes
No
Yes
Yes
Yes
Yes
Instant Response
No
Yes
No
No
No
No
No
No
No
Yes
No
Late Payment Fee
Up to $40
See terms
Up to $40
None the first time you pay late. After that, up to $41.
Up to $41
Up to $40
Up to $40
Up to $41.00
Up to $41
Up to $38
Up to $41
Build Credit
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Yes
Checking Account Required
Yes
Yes
No
Yes
No
No
No
No
No
No
No
Payment System
Mastercard®
Visa®
Mastercard®
DISCOVER
Mastercard®
Visa®
Mastercard®
Mastercard®
Mastercard®
Visa®
Mastercard®
States Available
Any
Any
Any
Any
Any
Any
This offer is not available in Wisconsin.
Any
Any
This offer is not available in West Virginia.
Any

Alternatives to secured cards to help you in hard times

If for some reason you cannot get approval for a secured card or just want to consider other options, you have some other offers to choose from. For example, you may consider prepaid debit cards. Of course, they will not help you build credit since they do not report to the credit bureaus. Nevertheless, they can also be a good alternative to cash and are quite convenient for paying for purchases and bills. Another option is personal loans. With a loan, you get money in your bank account, usually within 1-2 business days, and then pay it back in equal monthly installments with added interest. Unlike debit cards, lenders submit reports to the credit bureaus, which can help improve a credit history. All in all, whatever you choose, make sure that the terms correspond to your expectations and you are able to make all the necessary payments on time.

must read NEWS AND RESEARCH
ABOUT COVID-19

News: Online Shopping During Coronavirus - Credit-Land.com
Apr 7, 2020

Online Shopping During Coronavirus

A survey showed that the number of U.S. households switching to online shopping and using delivery...

Discover it® Secured Credit Card Review: Build, Earn, Upgrade

Discover it® Secured Credit Card Review: Build, Earn, Upgrade

The Discover it® Secured Credit Card stands out among other secured credit cards. It has no annual...

EXPLORE MORE CREDIT CARDS BY CATEGORIES

comments ABOUT
SECURED CREDIT CARDS🜂

YOU'VE SUCCESSFULLY SUBSCRIBED!
PLEASE SPECIFY THE FOLLOWING:
All these fields are optional
your credit history
Excellent (750-850)
Good (700-749)
Fair (640-699)
Bad (350-639)
No Credit History
OR ENTER YOUR EXACT CREDIT SCORE
THEMES YOU ARE INTERESTED IN:
Traveling with Credit Cards: how to Save and Earn Rewards
How to Take Advantage of Credit Card Rewards
Credit Cards for Building Credit
Business Credit Card Offers
How to Save with Balance Transfer Credit Cards
Special Credit Card Offers for Students
Credit Cards with Low Interest Rates
Benefits of Credit Cards with No Annual Fee
Best Credit Card Offers with 0% Intro APR
By providing this information you help us make our news letters more useful and informative. Thank you!