Secured Credit Cards
Build or rebuild credit history with a card backed by a refundable security deposit.
Secured credit cards: build or rebuild credit with a refundable deposit.
Who these cards fit
People new to credit, rebuilding after past issues, or without a Social Security-linked credit file.
Overview
A secured credit card requires a refundable cash deposit that typically establishes your credit limit. From the credit bureaus' perspective, a secured card looks identical to any other credit card — it reports payment history, utilization, and account age to the major bureaus, which are the ingredients your FICO and VantageScore models rely on. Used responsibly (low utilization, on-time payments, and a long-held account), a secured card can raise a thin or damaged file within six to twelve months. Many issuers offer a graduation path to an unsecured card and return the deposit once your account is in good standing for a defined period.
How to choose
- Confirm the card reports to all three major bureaus — Equifax, Experian, and TransUnion.
- Prefer cards with a clear graduation path to unsecured after 6–12 months of on-time payments.
- Check whether the annual fee (if any) is worth it versus a no-fee alternative.
- Understand the deposit refund policy — under what conditions and how quickly it is returned.
Cards in this Category
Capital One Platinum Secured
Applicants building credit from scratch or rebuilding after past issues.
No credit or limited/damaged credit
Discover it Secured
Applicants building or rebuilding credit who also want to earn cash back.
No credit or limited/damaged credit
Frequently Asked Questions
How is a secured credit card different from a debit card?
A debit card draws directly from your bank account and does not report to credit bureaus. A secured credit card is a real credit account — you make purchases against a credit limit, receive a monthly statement, and the payment history is reported to the bureaus, which is what builds your credit file.
How long should I keep a secured credit card?
Keep it open at least until you have graduated to an unsecured card or established a stronger primary card. Closing an older account can reduce your average account age, which is one of the factors credit scoring models consider.
Do secured cards charge interest?
Yes. Secured cards charge interest on any balance carried past the due date, and the APR is often higher than unsecured cards. Paying the full statement balance every month avoids interest entirely.