If you’re looking to build or rebuild your credit, a secured credit card can be a game-changer. These cards require a refundable security deposit, which acts as your credit limit, making them accessible to those with limited or poor credit history. With responsible use—such as paying on time and keeping balances low—you can graduate to an unsecured card and improve your credit score over time.
Why Choose a Secured Credit Card?
Many people assume that a poor or non-existent credit history locks them out of the financial system, but that’s not true. A secured credit card provides a second chance and a structured way to demonstrate responsible credit use. Here’s why they’re a smart choice:
- Accessible for those with bad or no credit: Unlike unsecured cards, which require a strong credit history, secured cards are designed for those who need to prove themselves financially.
- Credit-building potential: Your payment history is reported to the three major credit bureaus (Experian, Equifax, and TransUnion), helping to improve your credit score over time.
- Path to unsecured credit: Many secured cards offer automatic reviews, making it easier to transition to an unsecured card without having to apply for a new one.
- Control over spending: Since your credit limit is based on your deposit, there’s less risk of overspending and falling into unmanageable debt.
To help you choose the best secured credit card, we’ve broken down some of the top options, their features, and what makes each one stand out.
Top Secured Credit Cards for 2025
1. Discover it® Secured Credit Card – Best for Rewards
- Security Deposit: $200 minimum
- Credit Limit: Equal to your deposit (up to $2,500)
- Rewards: 2% cash back at gas stations and restaurants (on up to $1,000 per quarter); 1% on everything else
- Annual Fee: $0
- Extra Perks: Automatic reviews after 7 months for a possible upgrade to an unsecured card
- Why We Love It: This card is a rare gem because it offers cash back rewards on purchases, which most secured cards don’t provide. Plus, Discover matches all the cash back you earn in your first year, making it even more valuable.
2. Capital One Quicksilver Secured – Best for Flat-Rate Cash Back
- Security Deposit: $200 minimum
- Credit Limit: Equal to your deposit
- Rewards: Unlimited 1.5% cash back on all purchases; 5% back on hotels and rental cars booked through Capital One Travel
- Annual Fee: $0
- Extra Perks: Credit limit reviews after 6 months, potential upgrade to unsecured
- Why We Love It: If you prefer a simple, straightforward rewards structure, this is a great pick. The 1.5% cash back on all purchases makes it easy to earn rewards without worrying about categories.
3. OpenSky® Secured Visa® Credit Card – Best for No Credit Check
- Security Deposit: $200 minimum
- Credit Limit: Equal to deposit (up to $3,000)
- Annual Fee: $35
- Extra Perks: No credit check required; no bank account required to fund deposit
- Why We Love It: The OpenSky Secured Visa is an excellent choice for those who may have trouble getting approved elsewhere. Since there’s no credit check, it’s one of the easiest secured cards to qualify for.
4. Chime Credit Builder Visa® – Best for No Fees
- Security Deposit: No minimum deposit; spending limit is based on funds moved into Credit Builder account
- Annual Fee: $0
- Extra Perks: No credit check, no interest, no fees; requires a Chime Checking Account
- Why We Love It: This card makes credit-building incredibly low-risk since there are no fees or interest charges. It’s a fantastic option if you already have a Chime account.
5. Navy Federal nRewards® Secured Card – Best for Military Members
- Security Deposit: $200 minimum
- Credit Limit: Equal to deposit
- Rewards: Earn points on purchases while building credit
- Annual Fee: $0
- Extra Perks: Potential credit limit increase in 3 months; upgrade path to unsecured
- Why We Love It: If you’re eligible for membership with Navy Federal Credit Union, this card offers a smooth transition to unsecured credit while allowing you to earn rewards.
Side-by-Side Comparison
| Card | Security Deposit | Credit Limit | Rewards | Annual Fee | Best For |
|---|---|---|---|---|---|
| Discover it® Secured | $200 min | Up to $2,500 | 2% cash back (gas & dining), 1% elsewhere | $0 | Cash Back Rewards |
| Capital One Quicksilver Secured | $200 min | Equal to deposit | 1.5% unlimited cash back | $0 | Flat-Rate Cash Back |
| OpenSky® Secured Visa® | $200 min | Up to $3,000 | None | $35 | No Credit Check |
| Chime Credit Builder Visa® | No min | Based on funds moved | None | $0 | No Fees |
| Navy Federal nRewards® Secured | $200 min | Equal to deposit | Earn points on purchases | $0 | Military Members |
Which Secured Credit Card is Right for You?
- If you want to earn rewards, go with the Discover it® Secured or Capital One Quicksilver Secured.
- If you don’t want a credit check, the OpenSky® Secured Visa is a great option.
- If you want to avoid fees entirely, the Chime Credit Builder Visa is ideal.
- If you’re a military member, the Navy Federal nRewards® Secured offers great perks.
How to Use a Secured Credit Card to Build Credit
- Pay on Time, Every Time: Late payments can hurt your credit score, so always pay at least the minimum due.
- Keep Your Balance Low: Try to use less than 30% of your available credit limit for the best impact on your credit score.
- Monitor Your Credit Score: Many secured cards offer free credit monitoring—use it to track your progress.
- Upgrade When Eligible: Once your credit improves, consider transitioning to an unsecured credit card to get your deposit back.
Final Thoughts
Choosing the right secured credit card depends on your goals. If you want to build credit while earning rewards, a cashback card may be best. If you’re looking for a hassle-free approval process, consider one with no credit check. Regardless of your choice, using your card responsibly—paying on time and keeping your balance low—will set you up for financial success!
Ready to take the next step? Pick the card that fits your needs and start building your credit today!
