Best secured credit cards of July 2024

Rewards cards with cash-back bonuses and flashy perks are great — if you have good credit. But if you have a less-than-stellar credit score (or even no credit history), a secured credit card can still help with your cash flow while putting you on the path to a higher credit score.

To help you find the right secured credit card, we analyzed 24 cards marketed to consumers with no or low credit. (See our methodology for more information on how we choose the best cards.)

Who's this for: The Discover it® Secured Credit Card is a well-rounded secured card that offers many benefits typically found with unsecured cards. Cardholders can earn cash back, receive a generous welcome bonus, use the card overseas without incurring added fees and more — all for no annual fee.

Standout benefits: Cardholders earn a competitive 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, then 1%. Plus, you can earn unlimited 1% cash back on all other purchases automatically.

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Who's this for? If you're looking for a secured card with a low deposit, the Capital One Platinum Secured Credit Card is your best option.

Standout benefits: Capital One also grants cardholders access to a higher credit limit after making the first five monthly payments on time — a good incentive to maintain a timely payment history (which is essential when you're trying to raise your credit score). In addition to paying on time, make sure you pay in full since this card has a very high 29.99% variable APR.

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Who's this for? If you want (and can afford) a secured card with a high credit limit, consider the Platinum Secured Mastercard® from First Tech Federal Credit Union.

Because First Tech is also a credit union, you need to be a member to open this card. Anyone can join through affiliation with select organizations or employers; a relationship with a current member; work for the state of Oregon; live or work in Lane County, Oregon; attend Cogswell Poly Technical College; or join the Community History Museum (CHM) or Financial Fitness Association (FFA).

Standout benefits: Cardholders earn 1 point per $1 spent on all purchases made with the Platinum Secured Mastercard®. This is a nice perk since secured cards often lack rewards programs.

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Who's this for? If you're looking for a basic secured card with one of the lower APRs, the Citi® Secured Mastercard® is your best option from a major bank. There is a 27.74% variable APR, which is quite high, but still lower than some of the other cards on this list.

Standout benefits: This card doesn't offer rewards, but that can be good if you're building credit since you won't be tempted to overspend. Cardholders can also benefit from Citi Entertainment access, which provides early access to presales and premium seating for various entertainment events, such as concerts and sporting events. Be aware purchases made outside the U.S. incur a 3% fee, so this isn't the best option for traveling overseas.

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Minimum deposit: There is a typical $200 minimum security deposit and no annual fee.

Who's this for? The DCU Visa® Platinum Secured Credit Card offers one of the lowest interest rates for a no-annual-fee secured card at 16.75% variable.

Membership to the Digital Federal Credit Union is required, but anyone can join in one of several ways: if you're a family member of a DCU member, live in select communities, work for select employers or make a one-time contribution (as low as $10) to a participating organization.

Standout benefits: While we don't recommend carrying a balance month-to-month (especially when you're trying to build or rebuild credit), it can be a good idea to choose a low-interest secured card if you have a history of carrying balances or you're looking for a safety net.

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Who's this for? If you want to build credit while earning cash back, consider the U.S. Bank Cash+® Visa® Secured Card.

Standout benefits: Your card purchases will earn cash back in various categories, including TV, internet and streaming, home utilities, cell phone providers, fast food restaurants movie theatres and everyday spending like gas stations, grocery stores and restaurants.

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Who's this for? If you're a frequent traveler, you might want to consider a secured card that offers travel-centric perks and no fees on purchases made outside the U.S., like the State Department Federal Credit Union (SDFCU) Savings Secured Visa Platinum Card.

Since it's issued by a credit union, membership is required. Anyone can qualify in one of four ways: through the Department of State, an affiliation with select organizations, a relationship with a current member or by joining the American Consumer Council (ACC). Unlike some other credit unions on this list, there's no cost to join the ACC.

Standout benefits: Cardholders can benefit from earning 1 Flexpoint per dollar spent on all purchases. This is a nice perk considering secured cards rarely have rewards programs.

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The Discover it® Secured Credit Card is ideal for anyone looking to build credit while earning rewards.

Rewards

• 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter
• 1% cash back on all other purchases

Welcome bonus

Discover will match all the cash back you've earned at the end of your first year.

Annual fee

$0

Notable perks

Many secured cards don't typically offer rewards or a welcome bonus. However, for new card members in the first year only, Discover will automatically match all the cash back you've earned at the end of your first year. So, if you earn $50 cash back at the end of the first year, Discover will give you an additional $50.

The card also requires a minimum $200 security deposit, which is fairly standard for secured credit cards. It stands out from the crowd because it gives users a clear path to upgrading to an unsecured card (and getting their deposit back).

At seven months from account opening, Discover will automatically review your credit card account to see if they can transition you to an unsecured line of credit and return your deposit. This takes the guesswork out of wondering when you'll qualify for an unsecured credit card.

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If you're looking for a secured card with a low minimum deposit requirement, the Capital One Platinum Secured Credit Card is a great choice.

Rewards

None

Welcome bonus

None

Annual fee

$0

Notable perks

This card has no annual fee and minimum security deposits starting as low as $49, $99 or $200, based on your creditworthiness. Unlike other cards that require a deposit equal to your credit limit, the Capital One Platinum Secured Credit Card provides flexibility in the deposit amount needed to qualify for a $200 credit limit. Your application determines your deposit amount and could be either $49, $99 or $200 — any of which will qualify you for an initial $200 credit limit.

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If you're looking to deposit a substantial amount of money into your card, the Platinum Secured Mastercard® from First Tech Federal Credit Union may be ideal for you.

Rewards

• 1 point per $1 spent on all purchases

Welcome bonus

None

Annual fee

$0

Notable perks

With a minimum deposit requirement of $500, which is higher than what secured cards typically require, this card has no annual fee and offers credit limits as high as $25,000, but you'll need to make a deposit equivalent to the line of credit you want.

According to the First Tech Federal Credit Union, you can also redeem your points for merchandise, travel and charity. This card also comes with many added benefits, including travel assistance services, travel accident insurance, baggage delay insurance, trip cancellation and trip interruption coverage, roadside assistance, auto rental collision damage waiver and purchase protection.

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The Citi® Secured Mastercard® is a no-frills secured card that offers a straightforward approach to building your credit.

Rewards

None

Welcome bonus

None

Annual fee

$0

Notable perks

Although this card doesn't offer any cash back, points or miles it offers a competitive edge as it comes with a lower interest rate of 27.74% variable APR compared to other secured cards from major banks. The Citi Secured card also allows you to select your own payment due date, giving you flexibility to align payments with your financial situation, regardless of when you get paid each month.

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Like the Citi Secured Mastercard, the DCU Visa® Platinum Secured Credit Card offers an uncomplicated credit-building approach with an even lower interest rate.

Rewards

None

Welcome bonus

None

Annual fee

$0

Notable perks

While there is a higher-than-average $500 minimum security deposit to open the card, its 16.75% variable interest rate and no annual fee make it one of the lowest-interest secured cards available. This means if you carry a balance, interest charges will be smaller compared to some secured cards with rates upwards of 20%. Cardholders can also benefit from additional perks, including travel insurance, identity theft protection and extended warranty protection.

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Building credit while earning cash back is rare but the U.S. Bank Cash+® Visa® Secured Card offers just that.

Rewards

• 5% cash back on your first $2,000 in combined eligible purchases each quarter in two categories you choose. Some categories include: TV, internet and streaming, home utilities, cell phone providers, fast food restaurants and movie theatres.
• 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants)
• 1% cash back on all other eligible purchases

Welcome bonus

None

Annual fee

$0

Notable perks

If you're big on cash back, this card offers a great cash back program that can be earned across various categories whether you use it for entertainment or other everyday purchases — or both. You'd be building your credit and earning some extra cash in return for your purchases. The cash back you earn can also be redeemed in one of three ways: a statement credit to your account, direct deposit to your U.S. Bank checking, savings or money market account or a U.S. Bank rewards card (similar to a Visa gift card).

New cardholders must also put down a deposit of between $300 and $5,000 which acts as your credit line. If you spend within your credit limit and pay your bill when it's due, U.S. Bank could eventually upgrade you to the U.S. Bank Cash+® Visa Signature® Card. But unlike some other cards on this list, there's no clear timeline. Once you're upgraded, your security deposit will be returned.

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For frequent travelers, the (SDFCU) Savings Secured Visa Platinum Card offers both travel benefits and no international purchase fees.

Rewards

• 1 Flexpoint per $1 spent on all purchases

Welcome bonus

None

Annual fee

$0

Notable perks

You can use this card for everyday expenses, or travel purchases. With your earned points, you can redeem rewards in various ways, including travel, event tickets, merchandise, gift cards and charity donations. With no annual fees and a low interest rate of 16.49% variable, you can also get Visa card benefits like roadside dispatch.

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A secured credit card is a type of credit card that you "secure" with a cash deposit. The amount of this deposit usually (but not always) determines your card's credit limit. It's typically easier to get approved for a secured card than for a traditional credit card, and making regular, on-time payments helps to build your credit.

If you want to raise your credit score but can't qualify for a traditional credit card, a secured card can help

a cash security deposit that acts as collateral and typically determines your credit limit. It is easier to get approved for than a traditional credit card, making it ideal for those aiming to improve their credit. While unsecured cards generally have more perks and a higher credit limit, secured cards offer a pathway to building or rebuilding credit and eventually graduating into an unsecured card.

While a secured card is a great way to build or rebuild credit for those who need it, this card type isn't right for everyone. Here's a breakdown of a secured credit card's most important benefits and drawbacks.

Pros

• Helps build or rebuild credit. Secured cards offer a pathway for those with little to no credit to build their credit and eventually transition to an unsecured card. 
• The deposit is refundable. You can get your deposit refunded either after paying off your balance and closing your account or upgrading to an unsecured card.  
• Little qualification requirements. Secured cards are typically easier to qualify for because they're designed to help those with little to no credit history build their credit.  

Cons

• Requires upfront cash deposit. Secured cards require you to put down your own money as collateral to reduce the lender's risk.  
• High APR. Secured cards may come with a higher APR and fees than unsecured cards.  
• Low credit limit. The credit limit on a secured card is linked to the size of the deposit, which usually starts at $200.  

When you're choosing a secured card, there are several factors you should consider:

• Fees: Look out for annual fees, processing fees and any other charges associated with the card.
• Interest rates: Check the annual percentage rate to understand how much you'll be charged for carrying a balance.
• Credit reporting: Ensure the card reports to major credit bureaus, as this helps with building your credit history.
• Deposit requirements: Determine the minimum and maximum deposit amounts required, and whether it's refundable.
• Upgrade policy: Find out if the card offers a pathway to upgrade to an unsecured card after a certain period of responsible use.

If a secured card is not right for you, you can still establish your credit by paying installment loans on time. If you have student loans, an auto loan or a mortgage already in your name, making on-time payments in full each month will significantly boost your credit over time.

If that's not feasible, you can also improve your credit by using *Experian Boost™ to earn credit for timely bill payments. This free feature lets you incorporate payments for phone, internet, cable, utility (gas, electricity, water) and streaming services like Netflix®, HBO™, Hulu™ and Disney+™ to your Experian credit report. If you’re a renter with a track record of positive payments, services like Rental Kharma or Rent Reporters can also report your credit information to the credit bureaus.

At CNBC Select, our mission is to provide our readers with high-quality service journalism and comprehensive consumer advice so they can make informed decisions with their money. Every secured credit card review is based on rigorous reporting by our team of expert writers and editors with extensive knowledge of credit card products. While CNBC Select earns a commission from affiliate partners on many offers and links, we create all our content without input from our commercial team or any outside third parties, and we pride ourselves on our journalistic standards and ethics. See our methodology for more information on how we choose the best secured credit cards.

To determine which secured cards offer the best value for a range of consumers, CNBC Select analyzed the 22 most popular secured credit cards offered by the biggest banks, financial companies and credit unions that allow anyone to join.

We compared each card on a range of features, including: annual fee, minimum security deposit, credit limit, rewards program, introductory and standard APR, welcome bonuses and foreign transaction fees, as well as factors such as required credit score and customer reviews when available. We also took into account how easy it is to upgrade the card from secured to unsecured and how quickly you can get your security deposit back.

Because it's unusual for secured credit cards to have robust rewards programs, we did not analyze how many reward points you can earn in the first year. For cardholders who are looking to rebuild credit, it's more important to practice good credit card habits — spending within your means, paying your balance on time and in full — than trying to optimize your points balance.

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For rates and fees of the Discover it® Secured Credit Card, click here.

*Results may vary. Some may not see improved scores or approval odds. Not all lenders use Experian credit files, and not all lenders use scores impacted by Experian Boost.

Information about the U.S. Bank Cash+® Visa Signature® Card has been collected independently by Select and has not been reviewed or provided by the issuer of the card prior to publication.