Secured credit cards are an excellent option for individuals looking to build or rebuild their credit history. These cards require a security deposit, which typically becomes the credit limit. Here are some of the best secured credit cards available in the USA:
1. Discover it® Secured Credit Card
- Highlights:
- Offers cash back rewards on purchases.
- Automatic reviews for potential upgrade to an unsecured card after eight months.
- No annual fee.
- Key Features:
- Security deposit starts at $200.
- Reports to all three major credit bureaus.
- Free FICO credit score monitoring.
2. Capital One Secured Mastercard
- Highlights:
- Opportunity for a higher credit line with responsible card use.
- No annual fee.
- Access to CreditWise for credit monitoring and tools.
- Key Features:
- Requires a refundable security deposit starting at $49, $99, or $200, based on creditworthiness.
- Reports to all three major credit bureaus.
- Potential credit line increase with responsible use.
3. Citi® Secured Mastercard®
- Highlights:
- No annual fee.
- Offers tools to help build credit.
- Flexible payment due date.
- Key Features:
- Requires a security deposit starting at $200.
- Reports to all three major credit bureaus.
- Ability to transition to an unsecured card with responsible use.
4. Bank of America® Cash Rewards Secured Credit Card
- Highlights:
- Cash back rewards on eligible purchases.
- No annual fee.
- Access to your FICO Score for free.
- Key Features:
- Requires a security deposit starting at $300.
- Reports to all three major credit bureaus.
- Opportunity for credit line increase with responsible use.
5. Wells Fargo Secured Credit Card
- Highlights:
- Opportunity to upgrade to an unsecured card with responsible use.
- Access to Wells Fargo Online® Banking.
- No annual fee.
- Key Features:
- Requires a security deposit starting at $300.
- Reports to all three major credit bureaus.
- Automatic reviews for potential credit line increase.
6. USAA Secured Card Visa Platinum® Card
- Highlights:
- Low variable APR on purchases, balance transfers, and cash advances.
- No foreign transaction fees.
- No annual fee.
- Key Features:
- Requires a security deposit starting at $250.
- Reports to all three major credit bureaus.
- Can be used to build or rebuild credit.
Tips for Choosing a Secured Credit Card:
- Look for cards with low fees and competitive interest rates.
- Check if the card reports to all three major credit bureaus to ensure your credit-building efforts are recognized.
- Consider cards that offer rewards or benefits to maximize your card usage.
- Choose a card that offers opportunities for credit limit increases or transitioning to an unsecured card with responsible use.
Secured credit cards can be valuable tools for establishing or rebuilding credit. By choosing the right card and using it responsibly, you can improve your creditworthiness over time.