Building a strong credit history is a crucial step toward financial stability, but accessing traditional credit options can be challenging for individuals with limited or poor credit. Secured credit cards offer an effective solution by providing a reliable way to establish or rebuild credit. These cards require a security deposit, which acts as collateral and minimizes the risk for card issuers, making them accessible even to those with low credit scores or no credit history.

This article explores the key features, benefits, and considerations of secured credit cards, shedding light on how they work and why they are a valuable tool for improving creditworthiness. By understanding the fundamentals, you can make informed decisions and take meaningful steps toward financial empowerment.

In this article, I will focus on the list of secure credit cards you can apply to build your credit. Click here to see the 10 secure credit cards mentioned in this article.

1.0 What a secure credit card is, and how it typically works

Let us quickly go over a secure credit card and how it typically works. A secure credit card looks and acts like a regular credit card, but the only difference is that you must put an initial security deposit down. The exact initial security deposit then becomes your credit limit amount.

For example, if you put $300.00 down as an initial security deposit, then you will have a credit limit of $300.00, and all you would need to do is make on-time payments for about 6 months to a year, depending on the credit issuer that you are dealing with. After this, your credit score should rise if you use the credit card and then make on-time payments on it every month.

Each of the monthly on-time payments you make will be reported to the three major credit bureaus: Experian, Equifax, and TransUnion. So literally, with each on-time payment you make every month, the credit bureaus are viewing you like, wow. This person is making their payments on time every single month. Let us boost up his or her credit score. So you must be responsible and make your payments on time every month.

Another important aspect of getting a secure credit card is the refundable nature of your initial security deposit. This deposit is returned to you when you graduate to an unsecured credit card or if you decide to close your account with all dues paid. This refundable feature provides a sense of security, ensuring that your money is not lost if you maintain responsible credit behavior.

2.0 Ten (10) Unsecured Credit Cards You Can Apply to Build Credit Scores.

Now that you understand the concept and benefits of a secured credit card, let’s delve into the practical aspect. We will discuss 10 different secured credit cards you can apply for if you are looking to start building or rebuilding your credit. This will guide you through the process of choosing and applying for a secured credit card that suits your needs. Below image show the 10 unsecured credit cards.

1. PNC Secured Visa Credit Card

The first security credit card on our list is called the PNC Secured Visa Credit Card. PSC is a famous bank based out of Pittsburgh, PA, and there are roughly 28 states that have APNC Bank in them. This is among the most reliable credit cards for customers who want to build and rebuild their credit scores. It should be noted that this credit card has advantages and disadvantages.

Advantages: 

• The PNC Secured Visa credit card is a good way to build or rebuild your credit if you live near APNC Bank
• The good thing is you do not have to be banking with them to get this card. That way, you can apply for the secure credit card in person.
• Low initial deposit whereby after opening the bank account, they will want an initial security deposit ranging anywhere from $300 to $2500, the maximum.
• Low credit card scores requirement criteria. This is a good credit card because the credit score required to get this credit card is a credit score of 300. So, those with bad credit can get approved for this card.

Disadvantages: 

• The PNC Secured Visa credit card is a good way to build or rebuild your credit if you live near APNC Bank given the fact that this credit card can only be opened in person at a PNC Bank branch.
• However, in some rare case scenarios, they might pull finger-Equifax or your TransUnion.
• There will also be a $3 monthly fee to have this credit card. That is what is terrible about it.
• Unfortunately, one of the biggest cons of getting this secure credit card is that it does not graduate to an unsecured status.
• After your credit score increases, you must close this credit card to get your refundable deposit back. Moreover, that right there in itself is going to take about 14 business days. If you want, you can apply for another unsecured credit card at PNC.
• I only recommend getting this credit card if you live near APNC and have a bad credit score because, as I said earlier, they will approve you.
• With a 300-credit score, this credit card does not come with any reward points and will also have no annual fees. This credit card has no annual fees at all.

2. Visa Platinum Secure Credit card

The second secure credit card we will discuss is the Visa Platinum Secure Credit card offered by Digital Federal Credit Union, also known as DCU. DCU is a not-for-profit financial cooperative. The credit union is based out of Massachusetts. It has a credit card that they offer specifically for building or rebuilding your credit that has a very low interest rate ranging anywhere from 16.75% to 18% maximum.

Advantages: 

• It is a good credit card for individuals who looking upon building or rebuilding their credit
• It offers low interest rate as compared to most of the credit cards
• There will also be no annual fees, balance transfer fees, cash advance fees, or foreign transaction fees. Now, you can apply for this credit card without them
• If you are doing well, they will graduate you with one of their unsecured credit cards.
• If you have a credit score above 675, then they will graduate you with their rewards. You will get more benefits than you cannot get with a secured credit card.

Disadvantages: 

• If you want to apply for this credit card, you will have to open an account with them. Opening an account with them will be $5 to open up a savings account.
• You also have to donate a minimum of $10 to an organization that DC has partnered with if you want to start banking with them. So, there is a minimum of $15 to start banking with this credit union.
• If you go through with the application now, the minimum-security deposit you must put in to get this credit card will be $500, and the maximum you could put in is $5000.
• Moreover, this credit card does not offer you any reward points, so it’s going to be strictly for building your credit.

3 Capital One Platinum secure credit

The third credit card on our list is the Capital One Platinum secured credit card. This card has no annual fees, and it’s recommended for people who want to build or rebuild their credit. It is also a good credit card for individuals who recently defaulted on loans or were denied a credit card they recently applied for.

Advantages: 

• No annual fees which mean that you will not be incurring extra fees annually which may add burden to you.
• It offers a good opportunity for customers who want to build and rebuild their credit
• It accepts customers who had defaulted on their loans and those who were denied a credit card
• The good thing and the unique thing about this credit is that it gives you a $200 credit limit just for putting a $49.00, even a $99 initial security deposit down. This is the only secure credit card I know that is doing this.
• Once you get the secured card, you make on-time payments for six to seven months. They will actually graduate to the unsecured version of this card, the Capital One Platinum credit card.

Disadvantages: 

• The APR on this credit card is high, and it is going to be out of 29.99% variable APR. However, if you make your payments on time and in full, you have nothing to worry about.
• Unfortunately, this secure credit card does not offer you any reward points.
• Capital One may inquiry for more information and verification from any credit bureaus. I cannot tell you which one they will pull from because they always switch it up.

4 Amazon Secure Credit Card

However, we are moving on to our fourth secure credit card now, which is called the Amazon Secure Credit Card. This is a sound, secure credit card to get if you are constantly shoppers but are also looking to build up your credit at the same time.

Advantages: 

• The Amazon Secure Credit Card is good for individuals who engages on shopping as it offers convenience for shoppers
• It offers a good opportunity for customers who want to build their credit while at the same time enjoying their shopping experience
• Low initial deposit as this credit card will come with the know-how you feed, and the minimum initial security deposit needed to get this credit card will be $100, while $1000 is the maximum.
• The good thing about this secure credit card is that they will approve you despite your bad credit score. So, if you want this credit card
• Once you get the credit card, they will give you 2% cash back on every Amazon purchase you make if you have an Amazon Prime membership
• There is low interest rate as the interest rate on this credit card will be 10%, which is not bad.
• After about 12 months of using your credit card responsibly, they will graduate you with the unsecured version of this credit card.
• If you have an Amazon Prime membership, that card will offer you 5% cash back on all your Amazon purchases.

Disadvantages: 

• The provider inquires for more information from the credit agencies. They will be inquiring from either your trans union or your Experian.
• The Amazon-secured credit card can only use it for Amazon purchases, such as in-store or online.

5. Navy Federal

Navy Federal Credit Union (NFCU) is the largest credit union in the United States, serving members of the military, veterans, and their families. It offers a wide range of financial products and services, including savings and checking accounts, loans, credit cards, mortgages, and investment services. Here’s an overview of what makes Navy Federal unique.

Advantages: 

• The credit card will give you 1% cash back on every purchase you make, and the minimum initial security deposit needed to get this credit card will be $200, while $5000 is the maximum.
• There are no annual fees, no balance transfer fees
• There are no foreign transaction fees, and no gross fees, and you will also be at an 18% interest rate, which is decent.
• This is a good, secured credit card to start building your credit, especially if you just started banking with Navy Federal, because this allows you to build a better relationship with this bank.
• Offers opportunity to graduate to unsecured credit card. If you build a good enough relationship with this bank by the time you graduate with unsecured status, they might give you a high limit on your unsecured credit card.
• The people with this card graduates to the cash rewards credit card, which is a pretty good credit card. So, you will get your initial security deposit back at potentially a high credit limit increase once you graduate to unsecured status. Credit unions are known to give high credit limits.
• The federal will open the door for you to have so much more with this credit union that you cannot even imagine.
• One of the best benefits of the secured credit card is that in just as little as three months, you might be eligible for a credit limit increase without adding to your original security deposit if you have been taking care of responsibilities and, of course, if your accounts in good standing, they will then review your account in about 6 months to see if you are eligible to graduate to the cash rewards credit card.

Disadvantages: 

• It is membership based as the credit card is available for specific group of people such active members of the US military and their family members, the veterans, staff or personnel of Department of Defonce (DOD). This means that this credit card is not available the general population.
•  To get this secured credit card, you are required to bank with a credit union called Navy Federal.

6. Capital One Quicksilver Secure Credit Card

The Capital One Quicksilver Secured Credit Card is a secured credit card designed to help individuals with limited or bad credit build or rebuild their credit history. What sets this card apart is that it also offers cashback rewards, which is relatively rare for secured credit cards.

Advantages: 

• Low minimum security deposit.  The minimum initial security deposit needed to get this credit card will be $200 while the maximum will be $3000.
• This credit card comes with no annual fees; you will also earn an unlimited 1.5 on cashback on every purchase, which is good, considering this is just a secured credit card.
• They offer refund on all security deposit paid in the process of applying for the respective credit card
• Reports to all three major credit bureaus (Equifax, Experian, TransUnion), helping you establish or improve your credit score with responsible use.
• Offers an opportunity for customers to graduate from unsecured credit card to secured credit card with several benefits
• It has not international or associated foreign fees for all transactions which are made internationally hence offering the best option for regular travelers

Disadvantages: 

• This credit card comes with high interest rate, the interest rate on this credit card is going to be a 29.99% variable APR. So, make sure to make your payment on time and in full, so you do not have to worry about this.
• Verify customer credit history with credit bureaus. So, I cannot tell you what credit Bureau they will check from.
• Offers low starting credit limit which in turn requires high deposit amount
• Customers applying for this credit card are required to pay security deposit during the credit application process.

7. Bank of America customized cash reward Secure credit card

The seventh secure credit card I will discuss is the Bank of America customized cash reward secure credit card. The Bank of America Customized Cash Rewards Secured Credit Card is a secured credit card designed to help individuals build or rebuild their credit while earning cashback rewards. Unlike many secured cards, this one offers flexible reward categories, allowing cardholders to tailor their rewards to their spending habits.

Advantages: 

• This credit card comes with no annual fees
• The minimum initial security deposit needed to get this credit card will be $200, while the maximum is $5000.
• The best aspect that makes this credit card so unique is that you will earn 3% cashback. The category of your choice and a quick example of categories you will be earning 3% cash back on are gas and EV charging stations, online shopping, cable, Internet, streaming and dining, et cetera
• You earn 2% cash back on grocery stores and close; after that, you get 1% cash back on every other purchase.
• This credit card will also graduate to the unsecured version if you have made your payments on time for the last seven months and are responsible for your credit.

Disadvantages: 

• It has foreign transaction fee of 3% which means that for all transactions made abroad you will be charged the said percentage
• APR charges are bit high as customers are charged 28.99% hence you should avoid carrying balances
• You are required to pay security deposit before you start using this credit card and it must be paid upfront.
• 3% and 2% cashback rewards are capped at $2,500 in combined spending per quarter.

8. Discover unsecured credit card

Now, the secured credit card we will discuss is called the Discover unsecured credit card, which is my favorite. The Discover It Secured Credit Card is a secured credit card designed for individuals with no credit, limited credit, or bad credit. It requires a refundable security deposit but stands out by offering generous cashback rewards and no annual fee.

Advantages: 

• Low minimum deposit as the minimum initial security deposit to get this credit card will be $200, while the maximum is $2500.
• This credit card will give you 2% cash back at gas stations and restaurants to $1000 and combined purchases each quarter. After that, you will only receive 1% cash back.
• Discovery will match the cash back you earn, if you make $500 in cash back within the first year, Discover will match that once the year is over and give you another $500, and there is no limit on how much they can match you.
• All security deposit is refundable
• Helps to build credit for those with bad credit and it reports to all of the three credit agencies (Equifax, Experian, TransUnion).
• After 7 months of responsible use, Discover automatically reviews your account to determine eligibility for transitioning to an unsecured card and refunding your deposit.
• No foreign fees for transaction conducted outside the USA hence it suitable credit card for frequent travelers.

Disadvantages: 

• You must pay security deposit during the credit card application process (security fee is refundable)
• High APR charges hence it will cost you high amount hence making it difficult for a person who is struggling financially
• Offers limited benefits especially on the aspect of the bonus offered as you only access these bonuses in areas such as restaurants and gas stations.

9. Bank of America unlimited cash reward secure credit card

The nine-secured credit card I want to discuss is the Bank of America unlimited cash reward secure credit card. The Bank of America Unlimited Cash Rewards Secured Credit Card is a secured credit card that helps individuals build or rebuild their credit while earning unlimited cashback rewards. It’s ideal for those looking to establish credit responsibly and get rewarded for their everyday spending.

Advantages: 

• This secure credit card comes with no annual fees.
• You will also be earning an unlimited 1.5% cash back on every purchase you make
• Low deposit amount, which is $200, while the maximum is $5000.
• The cashback you earn on this credit card will never expire as long as your account is still open.
• The best option for building credit, if you want to start building your credit and earn a decent amount of cash back at the same time

Disadvantages: 

• You are required to pay upfront security deposit during the application process
• Charges high APR making it difficult to some aspiring customers
• Charges foreign fees for purchases made outside the US hence is not suitable for regular travelers.

10. US Bank Cash Plus Secured Visa card

The U.S. Bank Cash Plus Secured Visa Card is a secured credit card designed to help individuals build or rebuild credit while earning significant cashback rewards. It offers customizable bonus categories, which is rare among secured credit cards, making it an attractive option for those who want to maximize rewards while improving their credit.

Advantages: 

• This credit card comes with no annual fees
• Low initial deposit as the minimum initial security deposit needed to get this credit card is $300.00, but the maximum is $5000.
• This credit card will give you 5% cashback—two categories of your choice up to $2000 each quarter.
• You will not be eligible for the 5% cashback and these 5% cash back categories are decent because they let you earn 5% cash back on food, TV and Internet, home utilities, electronic storage, gyms, sporting goods, etcetera.
• You earn a limited 2% cash back on grocery stores, restaurants, and gas and EV charging stations.
• Also, you will be earning 1% cash back on every other purchase.
• You can choose your payment due date. Whatever is convenient to you.
• There is also no limit to the amount of cashback you can earn. However, redemption starts at a minimum of $25.
• You can also redeem your rewards for cash back, savings credit, or an US bank rewards card.
• This secured credit card does graduate to the unsecured version of this card if you are responsible for your credit and making on-time payments every month for at least one year.

Disadvantages: 

• You are required to pay upfront security deposit during the application process
• Charges high APR making it difficult to some aspiring customers
• Charges foreign fees for purchases made outside the US hence is not suitable for regular travelers.

Table 1.1: Summarized comparison chart for the 10 listed secured credit cards

2.0 Frequently Asked Questions

1. What is a secured credit card?
A secured credit card requires a cash deposit as collateral, which typically becomes the card’s credit limit. It is designed for individuals with limited or poor credit history to help them build or rebuild their credit.
2. How do secured credit cards help build credit?

Secured credit card issuers report your payment history and account activity to the major credit bureaus (Experian, Equifax, and TransUnion). Consistently making on-time payments and maintaining a low balance can improve your credit score.
3. What are the best features of a secured credit card?

Low or no annual fees
Refundable security deposit
Reporting to all three major credit bureaus
Opportunity to graduate to an unsecured card
Rewards programs or cash back (if available)

4. What are the typical credit limits on secured credit cards?

Credit limits are usually equal to the amount of your security deposit, which can range from $200 to $5,000, depending on the card issuer. Some issuers offer credit limit increases over time without requiring an additional deposit.
5. Are secured credit cards suitable for everyone?

Secured credit cards are ideal for people with no credit history, poor credit, or those who want to rebuild their credit. However, if you already have good credit or qualify for unsecured cards, secured cards may not be the best option.
6. Can I get my security deposit back?

Yes, most issuers refund your deposit if you close the account in good standing or when you “graduate” to an unsecured credit card. Always check the card’s terms and conditions for specific details.

3.0 Conclusion

secured credit cards are excellent tools for individuals looking to establish or rebuild their credit history. By requiring a cash deposit as collateral, these cards provide access to credit while minimizing risk for issuers. Their benefits include credit bureau reporting, the opportunity to graduate to unsecured cards, and, in some cases, added features like rewards or cash back.
However, it’s essential to choose a card with favorable terms, such as low fees and refundable deposits, and to use it responsibly by making on-time payments and maintaining low balances. For those serious about improving their financial standing, secured credit cards offer a solid steppingstone toward better credit and financial independence.

Also Read:

Build Credit Fast Using a Credit Card: 8 Tips for Beginners

Credit Cards and Debit Cards: 5 Major Differences: Which One is More Reliable, Useful, and Preferred?

How to Use Credit Cards Responsibly.10 Solutions for Proper Management of Credit Cards: Expert Tips for Avoiding Financial Pitfalls

Credit cards without annual fees: 5 Advantages of No Annual Fee Credit Cards: Strategies of Improving Personal Finance in 2025