The 10 Best Secured Credit Cards For Bad Credit

Best Secured Credit Cards For Bad Credit

Secured credit cards are a good option for people with bad or limited credit history. To open a secured credit card, you must make a security deposit, which serves as your credit limit. As you use the card and make on-time payments, your credit score will start to improve. After a period of responsible use, you may be eligible to upgrade to an unsecured credit card with a higher credit limit and no security deposit.

List of the 10 best secured credit cards for bad credit

1. Discover it® Secured Credit Card

The Discover it® Secured Credit Card is a good all-around secured credit card with no annual fee and cash back rewards. Cardholders earn 2% cash back at gas stations and restaurants up to $1,000 each quarter, then 1% on all other purchases. Discover also offers a variety of credit score tools and resources to help cardholders improve their credit.

2. Capital One Platinum Secured Credit Card

The Capital One Platinum Secured Credit Card is another good option for people with bad credit. It has no annual fee and offers the potential to upgrade to an unsecured Capital One credit card after six months of responsible use. Capital One also offers a variety of credit monitoring and alerts tools to help cardholders stay on top of their credit.

3. Chime Credit Builder Visa® Credit Card

The Chime Credit Builder Visa® Credit Card is a good option for people with bad or limited credit history who want to build credit without a credit check. Cardholders make a security deposit of $100 to $200, and their credit limit is set to their security deposit amount. As cardholders make on-time payments, their credit limit may increase. Chime also offers free monthly credit score reports and automatic credit limit increases.

4. Navy FCU nRewards® Secured Credit Card

The Navy FCU nRewards® Secured Credit Card is a good option for people with bad credit who want to earn cash back rewards. Cardholders earn 1% cash back on all purchases. Navy Federal Credit Union also offers a variety of other benefits, such as no foreign transaction fees and free annual credit score reports.

5. Self Visa® Secured Credit Card

The Self Visa® Secured Credit Card is a good option for people with bad or limited credit history who want to build credit without a credit check. Cardholders can start building credit with as little as $1 down. Self also offers early access to paychecks with its Cash Advance feature.

6. Tomo Credit Card

The Tomo Credit Card is another good option for people with bad or limited credit history who want to build credit without a credit check. Cardholders can start building credit with a security deposit of as little as $200. Tomo also offers a personalized credit score tracker.

7. OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card is a good option for people with bad or limited credit history who want to build credit without a credit check. Cardholders can start building credit with a security deposit of as little as $200. OpenSky also offers free monthly credit score reports.

8. Mission Lane Visa® Credit Card

The Mission Lane Visa® Credit Card is a good option for people with bad or limited credit history who want to build credit without a credit check. Cardholders can start building credit with a security deposit of as little as $200. Mission Lane also offers free monthly credit score reports and credit monitoring.

9. Credit One Bank® Platinum Visa® for Rebuilding Credit

The Credit One Bank® Platinum Visa® for Rebuilding Credit is a good option for people with bad credit who want to rebuild their credit. Cardholders can start building credit with a security deposit of as little as $200. Credit One Bank also offers a variety of other benefits, such as free monthly credit score reports and credit monitoring.

10. Bank of America® Customized Cash Rewards Secured Credit Card

The Bank of America® Customized Cash Rewards Secured Credit Card is a good option for people with bad credit who want to earn cash back rewards. Cardholders can choose to earn 3% cash back on a category of their choice, such as gas, groceries, or travel, plus 1% cash back on all other purchases. Bank of America also offers a variety of other benefits, such as free monthly credit score reports and credit monitoring.

Factors to Consider When Picking A Secured Credit Card

  • Security deposit: How much money can you afford to put down as a security deposit? Most secured credit cards require a security deposit that is equal to your credit limit.
  • Annual fee: Some secured credit cards have an annual fee, while others do not. If you can find a card with no annual fee, it will save you money in the long run.
  • Interest rate: The interest rate is the percentage of interest you will be charged on your purchases if you do not pay your balance in full each month. Secured credit cards typically have higher interest rates than unsecured credit cards, but it is still important to compare different cards and choose the one with the lowest APR possible.
  • Rewards: Some secured credit cards offer rewards programs, while others do not. If you are interested in earning rewards, such as cash back or travel points, be sure to compare different cards and choose one that offers a rewards program that aligns with your spending habits.
  • Other benefits: Some secured credit cards offer other benefits, such as free credit score reports, fraud protection, and travel insurance. Be sure to consider the other benefits that are important to you when choosing a secured credit card.

How to Apply for a Secured Credit Card

To apply for a secured credit card, you will typically need to provide the following information:

  • Your name, address, and date of birth
  • Your Social Security number
  • Your income and employment information
  • The amount of security deposit you are willing to put down

You can apply for a secured credit card online, by phone, or in person at a bank or credit union. Once you have submitted your application, the lender will review it and decide whether or not to approve you for the card.

If you are approved for a secured credit card, you will need to make a security deposit. The amount of the security deposit will be equal to your credit limit. Once you have made the security deposit, you will receive your credit card in the mail.

Conclusion 

Secured credit cards can be a great way to build or rebuild your credit history. By using a secured credit card responsibly and making on-time payments each month, you can show lenders that you are a creditworthy borrower. This can make it easier to qualify for an unsecured credit card in the future.

Frequently Asked Questions (FAQ)

Can I get a secured credit card with bad credit?

Yes, you can get a secured credit card with bad credit. In fact, secured credit cards are designed for people with bad or limited credit history. To open a secured credit card, you must make a security deposit, which serves as your credit limit. As you use the card and make on-time payments, your credit score will start to improve. After a period of responsible use, you may be eligible to upgrade to an unsecured credit card with a higher credit limit and no security deposit.

Which secured credit card is easy to get?

Some of the secured credit cards that are easiest to get include:nDiscover it® Secured Credit Card, Capital One Platinum Secured Credit Card, Chime Credit Builder Visa® Credit Card, Navy FCU nRewards® Secured Credit Card and Self Visa® Secured Credit Card.

What is the easiest credit card to get with bad credit?

Capital One Journey Student Credit Card, Capital One Platinum Credit Card, Petal® 2 Visa Credit Card, Credit One Bank® Cash Rewards Credit Card and Merrick Bank Double Up Cash Back Rewards Visa

Which secured credit card can I use instantly?

Unfortunately, there are no secured credit cards that you can use instantly. All secured credit cards require you to make a security deposit and have your application approved before you can start using the card.

Can I get a credit card with a 500 credit score?

Yes, you may be able to get a credit card with a 500 credit score. 

Who gets denied a secured credit card?

Secured credit cards are designed for people with bad or limited credit history, so it is very rare to be denied a secured credit card. However, it is still possible to be denied a secured credit card, especially if you have a history of bankruptcy or foreclosure.

What are 2 downsides of getting a secured credit card?

The two main downsides of getting a secured credit card are: Security deposit and Annual fee.

Are secured cards easy to get?

Yes, secured cards are generally easy to get. You can apply for a secured credit card online, by phone, or in person at a bank or credit union.

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