updated april 30, 2018 – If you have a bad credit history or very little (or no) credit history, banks may approve you for a secured credit card that requires a refundable security deposit but otherwise works just like any other credit card (meaning you pay your balance each month, payments are NOT taken from your deposit). Secured credit cards can help you build credit if you use them responsibly, and they are one of our favorite ways to do so.
Below we offer our list of the 5 best secured cards on the market today. We are especially partial to cards that offer the possibility of returning your security deposit after a certain period of on-time payments, allowing you to then use that card as an unsecured credit card.
- First National Bank of Omaha Secured Visa – Put down a deposit of anywhere from $300 to $5000 and get a credit line of the same size. From their site: “You may be able to get your deposit back automatically in as little as 11 months when you maintain a good payment history with us (subject to credit approval).” No annual fee. Interest rate: 19.24%.
- Discover It Secured Card – Deposit anywhere from $200 to $2500 and get a credit line of equal size. Also offers a modest cash back reward program of a 1% rebate on most purchases, and 2% on restaurant and gas purchases (on up $1000 in such purchases per calendar quarter). A good payment history can help in building credit, and “Using credit responsibly across all of your credit cards and loans, including Discover and others, may qualify you to get your security deposit back.” No annual fee. Interest rate of 24.49%.