![]() Some secured cards offer rewards and other benefits much in the same way unsecured counterparts do.Ī secured card works like any other credit card with one big difference: Your credit limit will be determined by the amount of cash you put in a deposit account to guarantee the credit line. Secured cards have much in common with traditional credit cards-you can use them to make purchases, pay off a balance and build good credit with responsible spending habits. Your secured card credit limit will be equal to your deposit amount. ![]() Before using the card, a user deposits money into a bank account. To learn more about our rating and review methodology and editorial process, check out our guide on How Forbes Advisor Rates Credit Cards.Ī secured credit card is a credit card backed by a security deposit. The bonus categories for spending included with each card are factored into our determination of how many rewards a cardholder could expect to earn if they use the card as a consumer normally would. We use the same numbers for cards in the same category to make sure we are comparing cards the same way. That’s because the card might offer limited features compared to other rewards cards, but after we remove cards that charge an annual fee, it’s the best card that remains.įorbes Advisor uses data from multiple government agencies to determine how much a typical cardholder might spend. The rating for each card changes on different “Best” lists according to how a person looking for a card in that category may value certain card features.įor instance, a card that might be considered mediocre on a list of rewards cards could be the top card on a list of rewards cards with no annual fee. Reporting to all three major credit bureausįorbes Advisor rates cards both as stand-alone products (the card rating on the review) and compared to others in a specific use case (the card rating you see on a specific “Best” list).For each credit card, we collected information that potential cardholders would use in their decision-making process, including: Cardholders also have access to their FICO Score.įorbes Advisor evaluated multiple credit cards to find and rank the best secured credit cards. Plus, the card offers the ability to graduate to a non-secured account. Other benefits and drawbacks: Like the Bank of America® Unlimited Cash Rewards Secured Credit Card * a minimum security deposit between $200 and 5,000 is required. Welcome offer: This card does not offer a welcome bonus. Earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%. Rewards: Earn 3% cash back in a category of choice: gas, online shopping, dining, travel, drug stores or home improvement/furnishings 2% cash back at grocery stores and wholesale clubs unlimited cash back on all other purchases. For those with spending habits that change regularly or who want to have some extra control over their rewards earning, this card could be a good choice. The Bank of America® Customized Cash Rewards Secured Credit Card * offers cardholders the ability to choose their own bonus cash-back category. Other benefits include free Social Security number alerts, free credit monitoring benefits and free access to your FICO score. ![]() But, Discover will review your credit profile after seven months and offers the ability to upgrade to an unsecured card with responsible usage, in which case your deposit would be returned. Other benefits and drawbacks: Like all secured credit cards, the Discover it® Secured Credit Card requires a deposit-minimum $200-which serves as your initial credit limit. Welcome offer: Unlimited Cashback Match™ - Discover will automatically match all the cash back earned at the end of the first year. Plus, earn unlimited 1% cash back on all other purchases. Rewards: Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. Discover offers the unique Cashback Match feature, which represents outsized value compared to other cards in this category. The Discover it® Secured Credit Card is an excellent secured card because, unlike many other cards in the category, the Discover it® Secured Credit Card earns rewards and has a welcome bonus while helping build credit.
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