How many secured credit cards should i have

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Citi® Secured Mastercard®

Regular APR

26.24% (Variable)

Credit Score

New to Credit

Editorial Review

The Citi® Secured Mastercard® is a no-frills option that can help build credit over time. It has no rewards, but also none of the excessive up-front or annual fees charged by many other secured cards. Pay on-time for 18 months, and you may be upgraded to an unsecured card. Steer clear of holding a balance to avoid the high APR.

Pros & Cons

• No annual, monthly or setup fees
• Secured credit lines from $200 to $2,500

• High regular and penalty APR
• Foreign transaction fee
• High cash advance fee
• Cannot have filed for bankruptcy within the past 2 years

Card Details

• The Citi® Secured Mastercard® is a no annual fee credit card that helps you build your credit when used responsibly.
• Unlike a debit card, it helps build your credit history with monthly reporting to all 3 major credit bureaus. Once available, you will also have free access to your FICO score online.
• Use your card anywhere Mastercard® is accepted — worldwide.
• A security deposit is required. Once approved, your credit limit will be equal to your security deposit (minimum of $200).
• Get help staying on track with Auto Pay and account alerts.
• With Flexible Payment Due Dates, you can choose any available due date in the beginning, middle or end of the month.
• Manage your account 24/7 online, by phone, or in our mobile app.

Best Secured Credit Cards

Best Overall

Discover it® Secured Credit Card

Up to 2% Reward Rate

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earnRead More

Welcome Bonus

Cashback Match™

Regular APR

25.99% Variable APR

Credit Score

New/Rebuilding Credit

Why We Picked It

In the secured credit world, the Discover it® Secured Credit Card stands above the competition. With an unlimited 1% cash back rate on all purchases, plus 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, no penalty APR and no annual fee, we love this card for those who need to rebuild their credit. The matching cash back reward at the end of your first year is a sweet bonus.

Pros & Cons

• No annual fee
• Cash back rewards earning is uncommon for a secured card
• Free FICO score access each month
• Cashback Match doubles cash back rewards earning at the end of the first year

• Rewards are capped
• Secured cards don’t provide many of the perks unsecured cards do
• Secured cards require refundable deposits

Card Details

• No credit score required to apply.
• No Annual Fee, earn cash back, and build your credit with responsible use.
• Establish your credit line by providing a refundable security deposit of at least $200. That means a $200 deposit for a $200 credit line. Or a $500 deposit for a $500 credit line. Bank information must be provided when submitting your deposit, and the security deposit equals your credit limit. Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.
• Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
• Discover helps remove your personal information from select people-search websites. Activate by mobile app for free.
• Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
• Click “Apply Now” to see terms and conditions.

Navy Federal Members

Navy FCU nRewards® Secured Credit Card *

1X Reward Rate

Earn 1X points per dollar spent

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

A secured card with no annual fees, no balance transfer fees and rewards, the NRewards is a solid choice for those who qualify and are eligible for the Navy Federal Credit Union.

Pros & Cons

• No annual fee
• No foreign transaction fees
• Earn 1 point per dollar spent
• No cash advance fees

• Navy Federal requires membership, which means you need to have at least a grandparent or grandkid that’s a veteran or active military member
• As a secured card, the account requires a deposit

Card Details

• Cell Phone Protection: Your Navy Federal Credit Card can provide extra protection for your cell phones
• 18% Variable APR on purchases
• No annual fee
• Earn 1X points per dollar spent
• No rewards limit: Spend more, earn more. Continue to accrue more until you’re ready to redeem
• Points redeemed for cash, statement credit, gift cards and merchandise
• Tap to Pay: Make purchases quickly and securely with your nRewards card
• No cash advance fees
• No balance transfer fees

Choosing Your Own Bonus Category

Bank of America® Customized Cash Rewards Secured Credit Card *

Up to 3% Reward Rate

Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvementRead More

Regular APR

26.99% variable

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

A secured card with no annual fee and the ability to earn rewards, this Bank of America card can provide a way forward for those needing to build their credit profile.

Pros & Cons

• No annual fee
• Earns cash-back rewards on eligible purchases
• Potential for an upgrade to an unsecured card

• The rewards system can be complicated to track
• An opening deposit of $200 is required
• There’s a foreign transaction fee

Card Details

• Add your Bank of America® credit card to your mobile device then shop in-store or in-app using Apple Pay®, Google Pay™ or Samsung Pay
• 26.99% variable for APR on purchases and balance transfers
• No annual fee
• Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement & furnishings
• Earn 2% cash back at grocery stores and wholesale clubs
• Earn unlimited 1% cash back on all other purchases
• You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
• A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
• Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking

Choosing Your Own Bonus Category

U.S. Bank Cash+® Visa® Secured Card *

Up to 5X Reward Rate

5% cash back on on the first $2,000 in combined eligible purchases each quarter in two categories of choice, 2%Read More

Regular APR

28.99% variable

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

Not only does it earn rewards, which is rare among secured cards but you can choose your own bonus adventure from a list of several everyday common spending areas.

Pros & Cons

• High rewards potential for a secured card
• $0 annual fee
• Useful convenience benefits

• Requires a deposit as any secured card does
• High variable APR
• Foreign Transaction Fees: 3% of each foreign transaction

Card Details

• Earn 5% cash back on on your first $2,000 in combined eligible purchases each quarter in two categories you choose, 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases
• Choose payment due date
• $0 annual fee

Flat-Rate Cash Back

Bank of America® Unlimited Cash Rewards Secured Credit Card *

Unlimited 1.5% Reward Rate

Earn unlimited 1.5% cash back on all purchases

Regular APR

26.99% variable

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

Earns an easy-to-manage 1.5% cash back on all your spending without tracking categories or spending caps.

Pros & Cons

• Simple rewards structure is easy to manage
• Potential to graduate to an unsecured card with good payment behavior
• Free access to your FICO score

• There are other secured cards that may earn you higher rewards.
• There’s a foreign transaction fee
• Somewhat high minimum deposit of at least $200 required

Card Details

• Earn unlimited 1.5% cash back on all purchases
• Cash rewards don’t expire
• Establish, strengthen or rebuild your credit
• No annual fee

Earning Points

U.S. Bank Altitude® Go Visa® Secured Card *

Up to 4X Reward Rate

Earn 4x points on dining and takeout, 2x points at grocery stores, gas stations and on streaming services and 1xRead More

Regular APR

28.99% variable

Credit Score

Bad/Poor (0 - 649)

Why We Picked It

If your biggest expenses are on dining and takeout, this is one of the best secured card offers available.

Pros & Cons

• Reports to all three major credit bureaus
• No annual fee
• Comes with a $15 annual streaming credit for eligible services

• Minimum deposit of $300 is required
• Non-bonus categories earn so-so rewards
• Other secured cards may offer rewards that better align with your spending

Card Details

• Earn 4x points on dining and takeout, 2x points at grocery stores, gas stations and on streaming services and 1x point on all other eligible purchases
• Earn a $15 streaming credit for annual streaming service purchases like Netflix and Spotify
• $0 annual fee

Low Interest Rate

First Progress Platinum Select Mastercard® Secured Credit Card

No Rewards

The First Progress Platinum Select MasterCard® Secured Credit Card does not offer rewards on purchases.

Regular APR

17.74% (Variable)

Credit Score

Bad Credit (0 - 649)

Why We Picked It

One of a small handful of secured cards where a recently discharged bankruptcy won’t automatically disqualify you from getting approved.

Pros & Cons

• Provides a way for those with low credit scores to rebuild
• Low variable APR for a secured card
• Reports to all 3 major credit bureaus
• Can apply even with a discharged bankruptcy in your file

• $39 annual fee
• No rewards on spending
• Lower-than-average credit line maximum

Card Details

• Receive Your Card More Quickly with New Expedited Processing Option
• No Credit History or Minimum Credit Score Required for Approval
• Quick and Complete Online Application; No credit inquiry required!
• Includes Free Real-Time Access to Your Credit Score and Ongoing Credit Monitoring powered by Experian
• Full-Feature Platinum Mastercard® Secured Credit Card; Try our new Mobile App for Android users!
• Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
• Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
• Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
• Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
• 24/7 Online Access to Your Account
• Nationwide program; available in all 50 US states *See Card Terms.
• Get a fresh start! A discharged bankruptcy still in your credit bureau file will not cause you to be declined.
• ¡Hablamos Español! Nuestros representantes de servicio al cliente hablan Español con fluidez para su conveniencia.
• Make 6-months of on-time payments & you’ll be invited to apply for an unsecured First Digital Mastercard!

Earning Back Your Deposit

Capital One Quicksilver Secured Cash Rewards Credit Card

Regular APR

28.49% (Variable)

Credit Score

Limited, Bad

Why We Picked It

For those who don’t mind paying a security deposit to unlock access to rewards earning, this card may be worth considering.

Pros & Cons

• Unlimited 1.5% cash back reward on all eligible purchases
• No foreign transaction fees

• High APR

Card Details

• No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you’re approved in seconds
• Put down a refundable $200 security deposit to get a $200 initial credit line
• Building your credit? Using a card like this responsibly could help
• Enjoy peace of mind with $0 Fraud Liability so that you won’t be responsible for unauthorized charges
• You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
• Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
• Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply
• Monitor your credit score with CreditWise from Capital One. It’s free for everyone

The Best Secured Credit Cards

Methodology

To determine the best secured credit cards, we looked at secured credit cards offered by large banks, small to mid-sized banks and credit unions. We considered whether or not cards earned rewards, fees, deposit requirements and offered the ability to graduate to a non-secured card in our rankings.

How to Pick a Secured Credit Card

• Strive to avoid annual fees. While some secured credit cards charge an annual fee, we suggest looking at a secured card that doesn’t charge any fees first, like most of the cards listed above. Any upfront fees you have to pay will eat away at your initial credit limit bank deposit and force you to start your credit building journey with less money on your credit line.
• Check minimum deposit amounts. Also check for minimum deposit amounts since some cards let you get started with a smaller collateral deposit upfront. A small upfront deposit could be important if you don’t have much spare cash around.
• Make sure any card you’re considering reports to the three credit bureaus. The value in obtaining a secured credit card should be building credit, which is why making sure your card reports your credit movements to the three credit bureau agencies is so important. Every card on this list reports your payments and balances to the credit bureaus, so make sure to start your search with cards we’ve profiled.
• Check for fees and read the fine print. Also make sure to check for fees and especially hidden fees in the fine print. Some secured credit cards charge an application fee and an annual fee, and many charge a monthly maintenance fee. The cards on this list are free of hidden fees, which is why we chose them.

Frequently Asked Questions (FAQs)

What is a secured credit card?

A secured credit card is a credit card backed by a security deposit. Before approval, you will deposit money into a bank account and won’t be able to access it while you have the card. Your secured card credit limit will be equal to the amount of your deposit.

How does a secured card work?

A secured card works like any other credit card, with one big difference: Your credit limit will be determined by the amount of cash you put in a deposit account to guarantee the credit line.

Do secured credit cards help build credit?

Yes. Secured credit cards payment records will be reported to at least one of the major credit agencies. This means a good payment record will build credit but also means skipped payments or defaults will lower your credit score. The best secured credit cards will report to all three credit bureaus.

How fast will a secured card build credit?

Secured cards report monthly to the credit bureaus, but it is entirely up to the credit bureaus how they use said payment information. In general, some banks offering secured credit cards will offer a ‘’graduation” to an unsecured credit card after making on-time payments for a specified or unspecified number of months.

Which banks offer a secured credit card?

Many banks offer secured credit cards. Some of those banks are smaller banks, but among the big banks that offer secured credit cards are Discover, Bank of America and U.S. Bank.

What is the best secured credit card?

The best secured credit card for you may not be the best for the majority of consumers.  For a combination of low cost to carry, rewards and opportunity to improve your credit, consider the Discover It® Secured.

What is the difference between secured and unsecured credit cards?

The main difference between secured credit cards and unsecured credit cards is that an unsecured credit card will not require a security deposit. Your credit line will be determined by the bank. A secured credit card requires a deposit and your credit line will be equal to said deposit.

Other Credit Cards To Be Considered

Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.

Forbes Advisor adheres to strict editorial integrity standards. To the best of our knowledge, all content is accurate as of the date posted, though offers contained herein may no longer be available. The opinions expressed are the author’s alone and have not been provided, approved, or otherwise endorsed by our partners.

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