9 Best Secured Credit Cards to Build Credit

Earning Structure:

• No rewards or cashback offered with this card

Welcome Bonus:

There is no welcome bonus available for this card.

Card Details:

• Annual fee: $0 for the first year, then $25 annually
• Security deposit: Starts as low as $100
• Credit check: No hard inquiry required
• Reporting: Reports to Experian, Equifax, and TransUnion
• Refunds: Deposit is refundable upon account closure with no balance

Key Benefits:

• Helps build credit with responsible payments
• Does not require good credit or a minimum credit score
• Security deposit held in a savings account, building savings simultaneously
• Access to free monthly credit score updates

Redemption Options:

Not applicable, as this card does not offer rewards or cashback to redeem.

Credit Requirements:

No credit history is required to apply.

Spending Limitations / Potential Drawbacks:

Credit limit is set by your security deposit, so purchasing power depends on how much you can deposit.

Why it Works for Beginners:

It offers an easy way for people with bad or no credit to start building credit, without the risk of high fees or hard credit checks.

Earning Structure:

• Does not offer points or cashback rewards.

Welcome Bonus:

There is no welcome bonus for this secured card.

Card Details:

• Annual fee: $0
• Security deposit: $49, $99, or $200 based on creditworthiness
• Reporting: Reports to all three major credit bureaus
• Credit line increase: Eligible after five consecutive on-time monthly payments

Key Benefits:

• Helps build or rebuild credit with responsible use
• Opportunity to increase credit limit without extra deposit
• No penalty APR for late payments, but fees apply
• No foreign transaction fees

Redemption Options:

Not applicable, as the card does not offer rewards or cashback.

Credit Requirements:

No credit history or limited credit is required for approval.

Spending Limitations / Potential Drawbacks:

The credit limit is initially based on the deposit amount, which may be lower than unsecured cards. It does not provide rewards or bonuses.

Why it Works for Beginners:

It allows cardholders to build credit with a manageable deposit and clear path to higher credit limits through responsible payments.

Earning Structure:

• No rewards or cashback are offered with this card.

Welcome Bonus:

There is no welcome bonus available for this card.

Card Details:

• Annual fee: $0
• Security deposit: Set by transferring funds from a linked Chime Checking Account
• Interest charges: None
• Requirements: Must have a Chime Checking Account with $200+ direct deposit in the past year
• Acceptance: Can be used anywhere Visa is accepted

Key Benefits:

• Helps build credit by reporting payments to all three major credit bureaus
• No credit check required to apply
• Optional spending control by adding funds before use
• Ability to lock the card anytime in the app
• No foreign transaction fees

Redemption Options:

Not applicable, as this card does not offer rewards or points.

Credit Requirements:

No credit history or minimum score is required to apply.

Spending Limitations / Potential Drawbacks:

Users can only spend up to the amount they deposit into the secured account, which may limit flexibility for some.

Why it Works for Beginners:

Its straightforward setup and tools to avoid overspending make it a good starting point for building credit without debt risk.

Earning Structure:

• 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter)
• 1% cash back on all other purchases

Welcome Bonus:

All cash back earned during the first year is matched automatically.

Card Details:

• Annual fee: $0
• Security deposit: Starts at $200
• Reporting: Reports to Experian, Equifax, and TransUnion
• Upgrade potential: May graduate to an unsecured card with responsible use

Key Benefits:

• Earns cash back while building credit
• No penalty APR for late payments (but fees may apply)
• Free access to FICO® Credit Scores
• Ability to monitor credit and spending with the Discover app

Redemption Options:

Cash back can be redeemed as statement credits, direct deposit, gift cards, or PayPal transfers.

Credit Requirements:

It works well for those with no credit or bad credit looking to improve their credit history.

Spending Limitations / Potential Drawbacks:

The quarterly 2% cash back limit is capped at $1,000 in combined gas and restaurant purchases.

Why it Works for Beginners:

It offers a straightforward way to build credit and rewards spending, reducing the typical downsides of secured cards.

Earning Structure:

• 1.5% cash back on every purchase, with no limit
• 5% cash back on hotels and rental cars booked through Capital One Travel

Welcome Bonus:

There is no specific welcome bonus offered with this card.

Card Details:

• Annual fee: $0
• Security deposit: Minimum refundable deposit of $200
• APR: Variable (around 29.74%)
• Reporting: Reports to all three major credit bureaus

Key Benefits:

• Helps build credit with responsible use
• No annual or monthly fees
• Simple, flat-rate cash back program
• Potential to upgrade to an unsecured card after responsible use

Redemption Options:

Cash back rewards can be redeemed as statement credits, checks, or gift cards.

Credit Requirements:

The card is aimed at people with limited or poor credit history.

Spending Limitations / Potential Drawbacks:

High-interest rates mean carrying a balance can be expensive.

Why it Works for Beginners:

It has no fees, a simple cash back rate, and helps build credit when used responsibly.

Earning Structure:

• Up to 15% Merchant Cashback at 29,000 partner merchants
• Up to 10% Random Cashback on all qualifying transactions
• Additional 1% Unlimited Cashback with Firstcard Premium, stacked on other cashback offers

Welcome Bonus:

There is no welcome bonus offered with this card.

Card Details:

• Annual fee: $0
• Security deposit: No minimum required
• APR: 0% on purchases
• Reporting: Reports to major credit bureaus

Key Benefits:

• Helps build credit with responsible use
• Earns cashback rewards on purchases
• No credit check for approval
• Flexible deposit amount

Redemption Options:

Cashback rewards can be redeemed through the Firstcard app, offering an easy way to access earned rewards.

Credit Requirements:

Open to individuals with no credit history or traditional credit documentation.

Spending Limitations / Potential Drawbacks:

The card has an annual fee, and some cashback rates depend on the app’s spin-the-wheel bonus system.

Why it Works for Beginners:

It combines credit building with rewards, has no minimum deposit, and allows people without traditional credit backgrounds to apply.

Earning Structure:

• Earn 1% cash back on all purchases.

Welcome Bonus:

There is no welcome bonus offered with this card.

Card Details:

• Annual fee: $49
• Security deposit: $200 minimum, up to $2,000 maximum
• Credit check: No credit check required for approval
• Reporting: Reports monthly to Equifax, Experian, and TransUnion

Key Benefits:

• Builds credit with consistent reporting.
• Earns cash back rewards.
• Flexible deposit amounts to fit budgets.
• Allows partial deposit payments over 90 days.

Redemption Options:

Cash back is earned as a reward and can be redeemed as a statement credit.

Credit Requirements:

No minimum credit score is needed to apply for this card.

Spending Limitations / Potential Drawbacks:

The annual fee of $49 reduces the initial deposit, and the credit limit depends on the deposit amount.

Why it Works for Beginners:

Its no-credit-check approval and monthly reporting make it a simple tool for someone new to credit or rebuilding.

Earning Structure:

• Earn up to 10% cash back on everyday purchases

Welcome Bonus:

No welcome bonus is offered with this card.

Card Details:

• Annual fee: $35
• Security deposit: Minimum $200, up to $3,000
• Credit check: Not required
• Bank account: Not required for application
• Reporting: Reports to all three major credit bureaus
• Issuer: Capital Bank

Key Benefits:

• High approval rates even for poor or no credit
• No credit check on application
• Ability to build credit with responsible use
• Credit limit based on deposit, allowing control over spending
• Reports to all three major credit bureaus

Redemption Options:

Not applicable, since no points or rewards are earned.

Credit Requirements:

Anyone with no credit or bad credit can apply without a credit check.

Spending Limitations / Potential Drawbacks:

Requires a security deposit, which ties up funds as collateral. No rewards or cash back benefits.

Why it Works for Beginners:

It offers a simple way to build or rebuild credit without needing prior credit history or bank accounts.

Earning Structure:

• 3% cash back in one chosen category, such as gas, dining, or travel
• 2% cash back at grocery stores and wholesale clubs (on up to $1,000 in combined purchases each month)
• 1% cash back on all other purchases

Welcome Bonus:

There is no welcome bonus offered with this card.

Card Details:

• Annual fee: $0
• Security deposit: Matches the credit limit
• Reporting: Reports to all three major credit bureaus
• Extras: Free monthly FICO® Score access

Key Benefits:

• Earn rewards while building credit
• Flexible cash back categories
• No penalty APR for first late payment
• Direct deposit options for rewards

Redemption Options:

Cash rewards can be redeemed anytime for statement credits, direct deposits, or to pay for eligible Amazon and PayPal purchases.

Credit Requirements:

Available to users with a wide range of credit scores, including poor or no credit history.

Spending Limitations / Potential Drawbacks:

The required security deposit can be a barrier for some, and the 3% cash back cap is limited to one chosen category.

Why it Works for Beginners:

It combines credit building with rewards, making it appealing for new credit users who want to earn while improving their credit history.