If you’re struggling to build credit, then secured credit cards may be the answer you’ve been looking for. A secured credit card works differently from a regular credit card. To get approved, you’ll pay a refundable security deposit that then acts as your credit limit. Then, you can use your card against your deposit and repay your balance each month to help build your credit history.
We’ve researched and outlined some of the best secured cards for 2025, listing the top 7 with options ranging from cash-back rewards to no-credit-check approval processes. Let’s dive in.
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1. Best for cash back rewards: Discover it® Secured Credit Card
The Discover it Secured Credit Card stands out as one of the best secured credit cards by offering no annual fee and an easy upgrade path to an unsecured card. Here’s how it works:
- Pay a deposit: You pay a refundable security deposit starting at $200
- Make on-time payments: To help build credit, use your card and pay it off in full each month.
- Get your deposit back: After 7 months of on-time payments, Discover will review your account and potentially refund your deposit.
The best part? This card also helps you earn cashback rewards – a rare perk for a secured credit card. The combination of reward potential and relatively quick upgrade potential makes this secured card particularly valuable for those who want to eventually upgrade to an unsecured credit card.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $200 minimum |
| Rewards | 2% cash back at gas stations and restaurants (up to $1,000/quarter), 1% on all other purchases |
| Upgrade Timeline | Reviewed after 7 months |
| Special Offer | Cashback Match for the first year |
| Annual Percentage Rate (APR) | 26.99% |
2. Best for a low security deposit: Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card offers exceptional accessibility with one of the lowest minimum deposit requirements in the market. You can start building credit with a security deposit as low as $49 to secure an initial credit line of $200, making it an ideal choice for those with limited funds available for a deposit.
This card also has no annual fee and provides automatic consideration for credit line increases after six months of on-time payments, without an additional deposit. Capital One also includes access to CreditWise, a free credit monitoring tool that helps you track your progress and understand factors affecting your credit score.
The low barrier to entry and built-in credit monitoring tools make this card particularly suitable for credit newcomers who want to start building credit with minimal upfront investment.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $49, $99, or $200 |
| Rewards | None |
| Upgrade Timeline | Offers an upgrade path to an unsecured Platinum Card with responsible use |
| Special Offer | None |
| Annual Percentage Rate (APR) | 29.49% |
3. Best for personalized rewards: Bank of America Customized Cash Rewards Secured Credit Card
The Bank of America Customized Cash Rewards Secured Credit Card brings the flexibility of personalized rewards to the secured card space. With a minimum deposit of $200 and no annual fee, this card allows you to earn:
- 3% cash back in a category of your choice
- 3% bonus cash back (during the first year only)
- 2% cash back at grocery stores and wholesale clubs
- 1% on all other purchases
You’ll earn the 6% and 2% cash back rates on your first $2,500 in combined purchases each quarter. After that, the rewards rate drops to an unlimited 1%.
This card’s vast rewards potential separates it from other secured cards. Plus, you’ll enjoy additional benefits like flexible payment due date options and the ability to manage your account through Bank of America’s online and mobile banking platform.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $200 minimum |
| Rewards | 3% in a category of your choice, 2% at grocery stores and wholesale clubs, 1% on everything else |
| Upgrade Timeline | Your account is periodically reviewed for an upgrade |
| Special Offer | An additional 3% in your first year |
| Annual Percentage Rate (APR) | 27.99% |
4. Best for simplicity: Citi Secured Mastercard
The Citi Secured Mastercard takes a straightforward approach to credit building, focusing on the fundamentals without complicated rewards structures.
This card has no annual fee and reports your payment activity monthly to all three major credit bureaus: Experian, Equifax, and TransUnion. Plus, you’ll get free access to your credit score online to track your progress.
The Citi Secured Mastercard’s strength lies in its simplicity and reliability, making it an excellent choice for those who want to focus purely on establishing a positive payment history without worrying about maximizing rewards or managing complex features.
While it may not offer the bells and whistles of rewards cards, its no-nonsense approach makes it ideal for first-time credit users who want to establish healthy credit habits.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $200 minimum |
| Rewards | None |
| Upgrade Timeline | Your account is periodically reviewed for an upgrade |
| Special Offer | None |
| Annual Percentage Rate (APR) | 26.49% |
5. Best for high limits: U.S. Bank Secured Visa Card
The U.S. Bank Secured Visa Card offers flexibility for those who want to start with a higher credit limit. With a minimum deposit of $300 and the ability to deposit up to $5,000 for a matching credit limit, this card provides room to grow as your financial situation improves.
This secured card has no annual fee and includes access to U.S. Bank’s online and mobile banking tools for easy account management. The higher potential credit limit can be particularly beneficial for those who anticipate larger expenses or want to maintain very low credit utilization ratios.
The card’s ability to accommodate larger deposits makes it suitable for users who have more cash available upfront and want the flexibility of a higher credit limit from the start.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $300 minimum |
| Rewards | None |
| Upgrade Timeline | Your account is periodically reviewed for an upgrade |
| Special Offer | None |
| Annual Percentage Rate (APR) | 27.99% |
6. Best for military members: Navy Federal cashRewards Secured Credit Card
The Navy Federal Rewards cashRewards Secured Credit Card is exclusively available to military members, veterans, and their families. If you’re a member of this community, you can earn 1% cash back on all purchases with no annual fee, cash advance fees, or foreign transaction fees.
Navy Federal reviews accounts for potential upgrade to unsecured status after just six months of responsible use. This quick upgrade timeline, combined with the rewards earning potential, makes it one of the most attractive secured cards available to eligible applicants.
| Feature | Details |
| Annual Fee | $0 |
| Security Deposit | $200 minimum |
| Rewards | 1% back on all purchases |
| Upgrade Timeline | Your account is reviewed every 6 months to upgrade to an unsecured card for |
| Special Offer | None |
| Annual Percentage Rate (APR) | 18% |
7. Best for various card options: OpenSky Secured Visa Credit Card
OpenSky offers 3 different secured credit cards, helping a wide range of customers get access to credit depending on their financial situation.
- OpenSky Launch Visa: $100 security deposit with a $2 monthly fee
- OpenSky Visa: $200 security deposit with a $35 annual fee.
- OpenSky Plus Visa: $300 security deposit with no annual fee
Regardless of the card you select, OpenSky reports your payment activity monthly to all three major credit bureaus, ensuring that responsible use will help improve your credit scores over time. Here are the details for OpenSky’s middle-tier card, the OpenSky Visa:
| Feature | Details |
| Annual Fee | $35 |
| Security Deposit | $200 minimum |
| Rewards | None |
| Upgrade Timeline | Your account is periodically reviewed for an upgrade |
| Special Offer | None |
| Annual Percentage Rate (APR) | 24.39% |
Need to build credit? Explore MoneyLion Credit Builder Plus
Not sure if a secured credit card is right for you? You can also explore alternative programs, like MoneyLion’s Credit Builder Plus membership.
Instead of requiring a large upfront deposit, Credit Builder Plus membership includes access to a Credit Builder loan of up to $1,000 with no hard credit inquiry and no minimum credit score requirements. A credit builder loan is specifically designed to help consumers establish positive payment history by making regular, on-time payments that are reported to credit bureaus.
MoneyLion’s Credit Builder Plus membership integrates seamlessly with the company’s mobile app, providing personalized guidance and real-time tracking of your credit-building progress.
This approach allows users to help build credit while keeping their cash available for other needs, rather than tying it up in a security deposit.
Try Credit Builder Plus Today!
How secured credit cards help build credit
Secured credit cards function as powerful credit-building tools through several key mechanisms. When you use a secured card responsibly, the card issuer reports your payment activity monthly to all three major credit bureaus.
Assuming you make your payments on time, this regular reporting helps establish or rebuild your payment history, which accounts for 35% of your credit score calculation.
Credit utilization – the percentage of your available credit that you’re using – also plays a crucial role in credit building.
Keeping your utilization below 30% of your credit limit demonstrates responsible credit management and positively impacts your score.
For example, if you have a $500 credit limit, keeping your balance below $150 will help optimize your credit utilization ratio.
The credit-building process typically follows this pattern:
- Open a secured credit card: Open a secured card with a refundable deposit
- Make small purchases: Be sure to repay them on time each month
- Keep your balance low: Try to use a small percentage of your available credit
- Build your credit history: Your credit card will report your on-time payments to credit bureaus
- Upgrade to better opportunities: As your credit score improves, consider upgrading to better cards to keep building your credit profile.
Most secured cards report to all three major credit bureaus, ensuring that your positive payment behavior contributes to a comprehensive credit profile across all agencies.
Key features to consider when choosing a secured credit card
When evaluating secured credit cards, focus on features that will maximize your credit-building success while minimizing costs. The most important considerations include deposit requirements, annual fees, credit bureau reporting, rewards potential, and upgrade policies.
Essential features when considering secured credit cards:
👉 Deposit range: Look for cards with deposit requirements that fit your budget, typically ranging from $49 to $300 minimum
👉 Annual fees: Prioritize no-annual-fee options when possible to minimize costs
👉 Credit bureau reporting: Ensure the card reports to all three major bureaus (Experian, Equifax, TransUnion)
👉 Rewards programs: Consider whether cash back or points align with your spending habits
👉 Graduation policies: Understand the timeline and requirements for upgrading to an unsecured card
👉 Credit line increases: Look for cards that offer automatic reviews for credit limit increases
Graduation refers to the process of transitioning from a secured to an unsecured credit card after demonstrating responsible payment behavior. This upgrade typically returns your security deposit while maintaining your account history, which is beneficial for your credit profile.
Consider creating a comparison chart of your top card choices, evaluating each against these criteria to identify the best match for your specific needs and financial situation.
Tips for building credit quickly with a secured credit card
Maximizing your credit-building success with a secured card requires consistent, strategic habits that demonstrate financial responsibility to credit bureaus. The foundation of rapid credit improvement lies in making all payments on time, every time – even if you can only afford the minimum payment.
Best practices to build credit quickly:
- Pay on time, every time: Set up automatic payments or calendar reminders to ensure you never miss a due date.
- Keep utilization low: Aim to use less than 30% of your credit limit, with under 10% being even better.
- Pay multiple times per month: Consider making payments twice monthly to keep reported balances low.
- Avoid carrying balances: Pay your full statement balance to avoid interest charges and demonstrate strong financial management.
- Monitor your credit regularly: Use free services to track your progress and identify areas for improvement.
- Be patient but consistent: Credit building takes time, but consistent habits typically show results within 6 months.
Remember that building credit is a marathon, not a sprint. Focus on developing sustainable financial habits that will serve you well beyond your secured card graduation.
👉 How to Build Credit With a Credit Card
👉 How to Improve Your Credit Score Without a Job
Frequently Asked Questions
What is a secured credit card, and how does it work?
A secured credit card is a special type of credit card that’s designed to help you build credit. This type of card requires a refundable security deposit that acts as your credit limit. Then, it reports your card payments to major credit bureaus, which can help you build your credit history.
How much is the security deposit, and is it refundable?
Security deposits usually range from $49 to $300 for minimum credit lines, although it depends on the card. Many cards will also let you make a higher deposit to secure a higher credit line.
Do secured credit cards report to all major credit bureaus?
Yes, the best secured credit cards report your payment history monthly to all three major credit bureaus: Experian, Equifax, and TransUnion. This comprehensive reporting is essential for building credit.
Can I upgrade my secured credit card to an unsecured card?
Most secured cards offer upgrade opportunities after demonstrating responsible use for several months. Upgrade timelines vary by issuer, with reviews typically starting after 6 or 7 months of use.
How long does it typically take to build credit with a secured card?
With responsible use, you can start seeing credit score improvements in as little as three to six months. However, building substantial credit typically takes longer and depends on a variety of factors.
