Best secured cards of March 2023

What is a secured credit card?

A secured credit card is a card that requires a security deposit from the cardholder when the account is opened. This security deposit is usually refundable and determines your initial credit limit. Secured credit cards are often used by consumers without credit history or with low credit scores and can be useful for building or repairing credit.

Related: Secured vs. unsecured credit cards: What you should know

How we chose the best secured credit cards

In choosing the best secured credit cards for this guide, we prioritized cards that don’t charge an annual fee and report credit activity to the three main credit bureaus. Reporting activity to credit bureaus is important since you’ll want your activity on the card to help improve your credit score. We also included some cards with modest annual fees with unique perks or aspects that may make them the best option for some consumers.

We didn’t put much weight on the APR rate, as you’ll want to ensure you can pay off your balance each month to work on building or repairing your credit. And, although this article is on The Points Guy, you shouldn’t put too much weight on the rewards earning rate since you’ll generally only keep your secured card until you’ve built or repaired your credit enough to move to a rewards credit card.

Related: How to choose the right credit card for you

Should I get a secured credit card?

Secured credit cards are best used for building or repairing credit. If you don’t have strong enough credit to be approved for most beginner credit cards, and you don’t have any trusted friends or family members that are willing to add you to their account as an authorized user, a secured credit card can be an assured way to getting a credit card and working to improve your credit score.

You should see a secured credit card as a stepping stone to an unsecured (or traditional) rewards credit card. If you can already get approved for an unsecured rewards credit card that doesn’t have high fees, you won’t need to consider getting a secured credit card.

Related: Travel rewards strategies for people with low credit scores

How does a secured credit card help build or repair credit?

If you’re looking to build or repair your credit with a secured credit card, you’ll want to ensure the card you get will report your payment activity to the credit bureaus. All of the cards described in this guide advertise that they do so — after all, card issuers realize that most people using secured credit cards are working to build or repair credit.

With a secured credit card, you’ll generally start with a low credit line. So, to build or repair your credit, you’ll initially want to make small, infrequent purchases and focus on paying off your balance in full each month.

The issuer may eventually offer you a higher credit line, which can help your credit score as long as you keep your utilization low. It’s also a good idea to check your credit score regularly while working to build or repair your credit.

Related: The best first credit cards

Is it worth it to pay an annual fee on a secured credit card?

Generally, it’s not worth paying an annual fee on a secured credit card. However, if you don’t want the issuer to perform a credit check, you may need to pay an annual fee to access a secured credit card that offers no credit check, like the OpenSky Secured Visa. And, although you should be paying your credit card bill in full every month to improve your credit score, if you are looking for a secured credit card with a low APR, you’ll usually need to pay an annual fee.

Related: Guide to credit card annual fees

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply