Best Secured Credit Cards of 2021

Secured Credit Cards are there for individuals with bad or lackluster credit history who are looking to take the utmost control in repairing or build their credit history with responsible usage. Usually a refundable security deposit is required based on your creditworthiness. How these cards work is that they will take a deposit as collateral and allow consumers to charge up to that amount.

Editor’s Note: Keep in mind that a lot of card issuers will try to take advantage of you if you have very few options to choose from in the first place considering that you have little to no credit history; they could give you a card notorious for having a high APR or annual fee.

Considerable Significance

The points listed below are what we’ve determined as detrimental when looking for a secured card:

• Reported to which Credit bureaus:  Three major credit bureaus: Equifax, TransUnion & Experian. Consumers should be on the look-out for credit card issuers that reports from all three credit bureaus to make sure that their credit history shows up on all three credit reports.
• Minimum security deposit: Lower is better, with the exception of an individual looking to make a large purchase (e.g. a flight) and is in need of a bigger credit limit, then I recommend accounts with a high maximum credit limit/security deposit.
• Rewards program: Poor credit history to no history on a consumer may look bad, but it doesn’t mean that they will get a bland secured card with no good rewards program. without a doubt, there are quite a few that do rewards;( e.g. Discover IT Secured)
• Annual fee: Of course, the lower the annual fee, the better. Cards with lower to no annual fees not only saves consumers money but also helps to improve their credit scores more. Considering the account age is an important factor in scoring, and by having a card with little to no annual fee, a consumer is most likely to keep it open for a more longer period of time.

Considerable Insignificance

The points listed below are what we’ve determined as insignificant when looking for a secured card:

• Late Fees: Making a late credit card payment will have a negative affect on you credit score; the whole point of the secured card is to improve your score.
• APR: Purchases on the card should only be charged to the card if there is available money for those purchases to be paid for. Cardholders should never be paying interest on the premise that consumers will have to pay off their balance every full month, these cards give them a chance to build their credit.

Secured Card Tips

• Avoid carrying a balance. APR is fairly high on these cards. If you cannot afford to pay off your whole balance, try making the minimum payment.
• Don’t miss any payments. If you want to build your credit score and prove that you can manage your payments consistently then you must have an existing clean payment history. 35% of your credit score is determined from this category. Missing a payment would mean that you’ll have to also pay a late fee on top of the payment you already owe (not including the higher penalty interest rate).
• Use your card every month. This is a way to demonstrate your utmost responsibility with credit usage. Using your credit card frequently can help; just pay a couple of consistent monthly bills with your credit card.

BankCheckingSavings’s Best Secured Credit Cards

List of Top 5 Secured Credit Cards

1.)  Discover it® Secured Card – No Annual Fee:

Discover it® Secured Pros:

• The card reports to all three credit bureaus.
• $0 Annual Fee
• Rewards never expire, and there’s no minimum redemption amount.
• There’s no penalty APR for paying late, and no late fee the first time you miss the due date.
• Access to FICO Score
• After 12 months, cardholders will automatically be evaluated monthly to see if they can qualify for a unsecured credit card; in which you will be converted to the new account and the rewards will carry over.

Discover it® Secured Cons:

• Interest Rate is rather high: 10.99% on balance transfers for 6 months, and then the ongoing APR of 23.24% Variable.
• Annual income must be over $10,000 to apply for this card
• Must have a Discover Checking and Savings account to make the initial deposit.

2.)  Capital One® Secured Mastercard:

With the Capital One Platinum Secured: Unlike a prepaid card, this card will help you build credit when used responsibly, with regular reporting to the 3 major credit bureaus. You'll get an initial $200 credit line after making a security deposit of $49, $99, or $200, determined based on your creditworthiness; and be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed Get access to your account 24 hours a day, 7 days a week with online banking to access your account from your desktop or smartphone, with Capital One's mobile app This card comes with no annual fee, and all the credit building benefits with responsible card use. Learn More About This Card

Capital One® Secured Mastercard® Pros:

• This card reports to the three major consumer credit bureaus
• it’s possible to get a credit limit on this card that’s higher than the security deposit you put down.
• You can make partial payments on your deposit, on the guidelines that you provide the full amount within 80 days of being approved. Keep in mind that your account will not be activated until your deposit is paid in full.

Capital One® Secured Mastercard® Cons:

• Strict Approval Process: You won’t qualify without a checking or savings account from them or if you have file bankruptcy that’s still on your credit report, etc.

3.) OpenSky® Secured Visa® Credit Card:

OpenSky® Secured Visa® Pros:

• The card reports to the three major consumer credit bureaus.
• You can qualify for this card easily. Bank does not run a credit check and doesn’t require a checking account.

OpenSky® Secured Visa® Cons:

• Can’t upgrade your account to an unsecured card.

4.) USAA Secured Platinum Mastercard®:

USAA Secured Platinum Pros:

• This card reports to the three major consumer credit bureaus
• Deposits can be placed in a CDs that earn interest
• US Bank Grace Period of 24-30 Days.
• Low Annual Fee of $29
• Better APR% than most secured cards

USAA Secured Platinum Cons:

• Must be able to open a USAA checking or savings product

5.) Harley-Davidson® Visa® Secured Card:

Harley Davidson VISA Secured Pros:

• Reports to all three credit bureaus
• No annual fee
• Earn interest on security deposit

Harley Davidson VISA Secured Cons:

• The rewards program is “Laggy”: $1=1 Point. Nothing attractive and the bonus points can only be redeemed for Harley Chrome Cash for purchases on Harley Davidson products and accessories.

1.) Navy Federal Nrewards Secured Card

Navy Federal Nrewards Secured Pros:

• Reports to all three bureaus.
• Earn interest on security deposit.
• No annual fee
• Good rewards program. 1 point per $1 spent. Once you hit 7,500 points, you can redeemed for up to 1¢ a point in prepaid Visa cards. (starts at .5 cents)

Navy Federal Nrewards Secured Cons:

• Only available to active or ex military members.
• $500 security deposit needed.

Editor’s Note: Although, I already mentioned my top 5, I believe that the NRewards Secured deserves an honorable mention in being such an exceptional secured card for the average consumer. Again, this card is ONLY available to active or ex military members.

Conclusion

If you’re searching for available ways to rebuild your credit, you can always apply for a Secure Mastercard, VISA, or AMEX.

Here’s how it works, upon approval of your application, you’ll be notified of the minimum security deposit amount required for your account.

Adding your own credit limit will depend on the amount you plan to deposit into your security deposits. You’ll be able to take control and rebuild your credit, with responsible usage or course.

Keep in mind that in no way am I saying that these cards are easily available to the public, some cards may turn you down for having no existing relationship with them.

Find out which card is fit for you by checking out our complete list of Credit Card Promotions today!

Chase Bank Business Bonus: $300 or $500 Checking Offer Coupon [Nationwide]

Discover Savings Bonus: $150 or $200 Offer Code LOP325

Huntington Bank Bonuses: $100, $400, $1,000 Checking, Business Promotions for 2025

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