Best Secured Credit Cards — January 2021

Secured credits are a great tool for people who want to build or improve their credit. The best secured cards offer a low opening deposit (if any), have minimal rates and fees, and even rewards. 

These types of cards are relatively easy to secure fast approval. There are more secured cards available than ever before, so it’s important to compare options before applying for one. To help you get started, check out Investopedia’s top choices for the best secured credit cards of January 2021.

Best Overall Secured Card

Secured Mastercard From Capital One

Credit requirements: Poor to Excellent

Regular APR: 26.99% (variable)

Annual fee: None

Opening deposit: $49

Upgrade available: Yes

Rewards program: Yes

 

Investopedia put the Secured Mastercard from Capital One on the top of its list thanks to its affordable rates and opening deposit. Rather than paying the fee upfront, Capital One lets you make monthly installments. 

When you pay your balance in full and on time six months in a row, you’ll be automatically considered for an upgrade to an unsecured credit card. All of this — plus no annual fee — is why this card is a good option if you want to boost your credit.

 

Best Travel Secured Card

SKYPASS Visa Secured

Credit requirements: Poor to Excellent

Regular APR: 16.24% (variable)

Annual fee: None

Opening deposit: $300

Upgrade available: Yes

Rewards program: Yes

 

New cardholders can take advantage of SKYPASS Visa Secured Card’s limited time offer: If you spend $3,000 in the first three months of account opening, you’ll receive 30,000 bonus miles. You’ll also earn 1,000 Miles every you leave your account open and one mile for every point you spend on qualifying purchases. 

All of these rewards make the SKYPASS Visa one of the best secured cards available. Very few cards offer these perks without charging an annual fee, which makes it a worthwhile option. Before applying, be aware that you can only redeem those miles for travel with Korean Air and other airlines. Check the list of airlines to make sure it’s one you use.

 

Best Rewards Secured Card

Discover it Secured

Credit requirements: Poor to Excellent

Regular APR: 22.99% (variable)

Intro balance transfer APR: 10.99% for 6 Months

Annual fee: None

Opening deposit: $200

Upgrade available: Yes

Rewards program: Yes

 

The Discover it Secured’s unsecured counterpart consistently ranks as one of the best credit cards on the market, and this one is no different. Not only can you build your credit while earning 2% cashback on the first $1,000 you spend at gas stations or grocery stores, but Discover will double all of the rewards you earned your first year. If you use your card responsibly for eight months, Discover will consider you for an upgrade. 

 

Best Balance Transfer Secured Card

US Bank Harley-Davidson Visa Secured

Credit requirements: Poor to Excellent

Regular APR: 13.99% – 22.99% (variable)

Intro purchase APR: 0% for 12 months

Intro balance transfer APR: 0% for 12 months

Annual fee: None

Opening deposit: $0

Upgrade available: No

Rewards program: Yes

 

Whether or not you’re a fan of Harley motorcycles, you’ll love that this secured credit card has no opening deposit and gives you 12 months of interest-free payments to get on top of your debt. In addition, you can also enjoy getting one point for every dollar you spend.

 

Best Secured Card For Building Credit

Self Visa Credit Card

Credit requirements: Poor to Excellent

Regular APR: 23.74%(variable)

Intro purchase APR: 0% for 12 months

Intro balance transfer APR: 0% for 12 months

Annual fee: $25

Opening deposit: $100

Upgrade available: No

Rewards Program: No

 

The Self Visa comes with a unique perk that no other secured card offers: If you qualify, you’ll start with a CD secured loan. Then, if you pay your monthly installment on time for three consecutive months and secure a minimum of $100 in your CD, you’ll receive the Self Visa card using the CD funds as your opening deposit. 

While it may seem like a lot of effort, the Self Visa card program is actually one of the most helpful ways to build your credit.

 

Best Secured Card For Servicemembers

nRewards Secured Credit Card

Credit requirements: Poor to Excellent

Regular APR: 18% (variable)

Annual fee: $0

Opening deposit: $200

Upgrade available: Yes

Rewards Program: No

 

If you have a strict budget, the nRewards Secured card makes it easier to follow. You can qualify for this credit card even if you have bad credit or none at all. You don’t have to worry about an annual fee, and it only costs $200 to open an account.

 

Source
  • Woolsey, Ben. “Best Secured Credit Cards.” Investopedia, Investopedia, 23 Dec. 2020, www.investopedia.com/best-secured-credit-cards-4801574.
Ian Schindler