Secured Credit Cards

Secured credit cards help people with bad credit or little or no credit. Build or rebuild your credit with a credit card secured by a security deposit.

Compare Credit Cards with Secured

Capital One Platinum Secured reports to the 3 major credit bureaus to help you build credit when used responsibly. This secured credit card's variable APR is 29.99%. You can receive an initial $200 credit line with a security deposit of $49, $99 or $200, depending on your creditworthiness. There is no annual fee.

Intro APR for Purchases

Intro APR for Balance Transfer

Regular APR

Annual Fee

N/A

29.99% (Variable)

Citi® Secured Mastercard® reports to the 3 major credit bureaus to help you build credit history. This secured credit card's variable APR is 27.49%. A minimum $200 security deposit is required. There is no annual fee.

Intro APR for Purchases

Intro APR for Balance Transfer

Regular APR

Annual Fee

N/A

27.49%* (Variable)

Discover it® Secured reports to the 3 major credit bureaus to help you build or rebuild credit with responsible use. The minimum refundable security deposit is $200 (up to the amount Discover approves) and your credit line equals your deposit. Starting at 8 months, Discover will perform automatic monthly reviews based on your responsible credit management across all your credit cards and loans to see if you could qualify to transition to an unsecured line of credit. You will see your FICO credit score for free on your monthly statement and in your online account. There is no annual fee.

But here's where it gets interesting. Discover it® Secured credit card offers rewards: 2% cash back at gas stations and restaurants (on up to $1,000 in combined purchases each quarter); 1% cash back on other purchases. As a promotion for new cardmembers, Discover will match all the cash back you've earned at the end of your first year.

Intro APR for Purchases

Intro APR for Balance Transfer

Regular APR

Annual Fee

N/A

10.99% for 6 months

28.24% Variable

Disclaimer: The information for the Capital One Platinum Secured, Citi® Secured Mastercard®, and Discover it® Secured has been collected independently by CreditDonkey. The card details on this page have not been reviewed or provided by the card issuer.

Secured Benefits

Benefits: Why Use a Secured Credit Card

Secured credit cards have some distinct benefits that distinguish them from unsecured cards.

They fulfill a need: A secured card may be the only option for someone with no credit or a poor credit history. In today’s world, a credit card is more of a necessity than a luxury, so such a card could be incredibly valuable to someone with a poor credit history who has been frustrated by their limited payment options.
They provide a way to build or rebuild credit: Getting a credit card and keeping current on your payments are good ways to help you build credit history. You couldn’t do that with just a prepaid debit card.
Low credit limit: The standard deposit and credit limit on most secured credit cards is in the $300 to $500 range. If you have difficulty keeping your spending in check, these cards will help you stay in line.

Drawbacks: What to Watch Out For

Secured cards have a very specific target market and very specific drawbacks.

The cards are restrictive: While the restrictiveness of secured cards is a benefit for helping people responsibly build or rebuild credit, it’s definitely a drawback as well. You’re most likely limited to spending a few hundred dollars on the card each month.
Money has to be deposited: Setting aside several hundred dollars as a deposit may be easier said than done for many people. Once this money is deposited, it’s used by the credit card company as collateral, meaning you can’t use it for any reason, not even to pay your credit card bill. That’s a lot of money to set aside just for the privilege of having the card.
Hefty fees and interest rates: Secured cards come with more fees than unsecured cards. Between these fees and the deposit you have to make, secured cards are a lot more expensive to own than unsecured cards, which is even more reason to actively work toward the goal of getting qualified for an unsecured card.

Secured credit cards are valuable tools for people who wouldn’t be approved for other types of credit, including the more common unsecured cards. They’re a way to build credit history while providing many of the same conveniences that other credit cards provide. Just like you would do before selecting any other type of credit card, though, make sure to do your research to decide which secured credit card is the best fit for you.