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Building Credit with Secured Credit Cards: Top Picks and Expert Insights

Are you struggling to get approved for a traditional credit card due to limited, poor, or bad credit history? Secured credit cards can be a great option to help you build your credit. In this article, we’ll explore the best secured credit cards on the market, their benefits, and what to consider when choosing the right one for you.

Understanding Secured Credit Cards

Secured credit cards require a cash security deposit, which typically acts as your credit limit. This deposit is refundable if you close your account or upgrade to an unsecured card. With responsible usage, secured cards can help you build your credit history and potentially qualify for better credit opportunities.

Top Secured Credit Card Picks

1. Capital One Quicksilver Secured Cash Rewards Credit Card: Earn unlimited 1.5% cash back on all purchases, with no rotating categories or spending limits. You may be automatically considered for a higher credit line in as little as 6 months.
2. Discover it Secured Credit Card: Receive a dollar-for-dollar cash-back match at the end of your first year, plus earn 1% – 2% cash back on all purchases. Discover starts automatic monthly account reviews after seven months to see if you’re eligible to upgrade to an unsecured credit card.
3. Bank of America Customized Cash Rewards Secured Credit Card: Customize your rewards by choosing a different category each month, earning 3% cash back on gas, 2% cash back on groceries, and 1% cash back on everything else.
4. Navy Federal nRewards Secured Credit Card: A great option for military members, with no annual fee, rewards, and reporting to major credit bureaus.
5. U.S. Bank Altitude Go Secured Credit Card: Earn 4x points on dining, takeout, and restaurant delivery, plus 2x points on gas and streaming services.

What to Consider When Choosing a Secured Credit Card

1. Eligibility requirements: Look for cards with flexible approval requirements, such as no credit check or low minimum security deposits.
2. Credit reporting: Ensure the card issuer reports activity to the three major credit bureaus (Experian, Equifax, and TransUnion).
3. Minimum security deposit: Consider cards with lower deposit requirements, but be aware of potential high credit utilization.
4. Fees: Watch out for cards with annual fees, foreign transaction fees, or other charges.
5. Upgrade options: Many secured credit cards provide a way to upgrade to an unsecured card later, often with a security deposit refund.

Building Credit with a Secured Credit Card

Responsibly using a secured credit card can help build your credit history, which could allow you to qualify for unsecured cards and other credit products. Focus on maintaining a positive payment history, and you might see changes to your credit score in as little as 30 to 45 days.

Our Research Process

We researched dozens of secured card options from different issuers, rating each card based on factors such as ongoing APR, annual fees, welcome offers, rewards, security features, and more. Our final list includes cards that scored well using our rating system and aligned with our expert opinion, experience, and research.