Secured credit cards are an excellent option for those looking to build or improve their credit. Unlike traditional credit cards, secured cards require a cash deposit that serves as collateral for the credit limit. This deposit reduces the risk for the lender and makes it easier for individuals with limited credit history or poor credit scores to obtain a credit card. Here are some credit card companies that offer secured cards in 2023.
Capital One
The Platinum Secured Card from Capital One is a popular option for those looking to build or rebuild their credit. The card requires a minimum deposit of $49, $99, or $200, depending on your credit score. Your initial credit limit is equal to your deposit. However, if you use the secured card responsibly, Capital One offers you the ability to earn back your security deposit and upgrade to a standard unsecured card.
Discover
The Discover It Secured card has been around for a long time. You can be pre-approved for this card without an impact on your credit score. This card requires a minimum deposit of $200. Unlike other secured credit cards, the Discover It Secured card allows you to earn cashback rewards. Currently, cardholders can earn 2% cash back on gas and dining and 1% on all other purchases.
Citibank
The Citi Secured Mastercard is an excellent option for individuals looking to build credit. This card also requires a minimum deposit of $200. The great thing about the Citi Secured Mastercard is that it gives you free access to your FICO score online. This is a great way to build and keep track of your credit in the same place.
Bank of America
The BankAmericard Secured Visa Credit Card is an excellent option for individuals who want to build credit while earning rewards. The minimum deposit for this card is $200, and the maximum is $5,000. The maximum is determined by your income and creditworthiness. This card also offers free access to your FICO score.
Your Local Credit Union
If large banks aren’t your thing, you can always check at your local credit union to see what secured credit card options they offer. Credit unions are a great place to establish a banking relationship. They are often more friendly to those with poor credit, and I have found that they offer great rates for car loans and credit cards.
Wrap Up
Secured credit cards are an excellent option for individuals looking to build or improve their credit. The banks listed in this article are some of the most reputable and well-known, but they are not the only ones offering secured credit cards. No matter which lender you choose, it is essential to consider the card issuer’s fees, rewards, and credit reporting practices to find the best option for your needs.
