The Best Secured Credit Cards of 2014

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If you find yourself being turned down for unsecured credit cards, one of the options you have in obtaining credit comes from a secured credit card.  A secured credit card is different than an unsecured credit card because your approved credit limit depends on the amount of your initial deposit.

Unsecured credit cards provide cardholders credit without having to put anything up for collateral.  Therefore, should the cardholder default, the process to recoup the funds is costly and time consuming.  A secured credit card on the other hand, works only when the cardholders deposits an initial amount of money to the card issuer.  That amount is the amount of credit the cardholder will receive and should a cardholder default, the issuer can simply draw from the deposited funds to cover the default. Secured cards generally come with unfavorable terms and high fees but we’ve compiled a list of our favorite secured cards that offer good terms with very low fees.

Open Skysm Secured Visa® Credit Card

Editor's Pick

Open Sky<sup>sm</sup> Secured Visa® Credit Card

Apply for the Open Sky<sup>sm</sup> Secured Visa® Credit Card
  • No Credit Check
  • Rebuild credit or establish credit with automatic reporting to all major credit bureaus
  • $29 annual fee
  • Grace period on new purchases
First Progress Platinum Select MasterCard® Secured Credit Card
First Progress Platinum Select MasterCard® Secured Credit Card
Apply Now...
  • Nationwide Program though not yet available in NY, IA, AR, or WI
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $300 -- $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • 24/7 Online Access to Your Account
Intro APR Intro APR
Period
Regular
APR
Annual
Fee
Intro Balance
Transfer
Credit
Needed
N/A N/A 14.99% (Variable) $39 N/A Bad Credit

USAA Secured Platinum Card
USAA Secured Platinum Card
Apply Now...
  • It's a real credit card - not a prepaid or debit card, that helps you build or improve your credit score.
  • When you apply - you'll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
  • Your CD is a security deposit - the money you put in upfront, from $250 to $5,000, is the card's credit limit.
  • Earn interest on your CD - your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don't default on your payments.
  • Start building your credit - opening a CD lets you get a credit card even if you don't have a credit history or have bad credit.
  • Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
  • If you are not eligible, USAA credit cards and other products may still be available.
Intro APR Intro APR
Period
Regular
APR
Annual
Fee
Intro Balance
Transfer
Credit
Needed
N/A N/A 9.90% (Variable) $35 N/A Bad Credit

USAA Secured Platinum American Express Card
USAA Secured Platinum American Express Card
Apply Now...
  • It's a real credit card - not a prepaid or debit card, that helps you build or improve your credit score.
  • When you apply - you'll also be opening a USAA 2-year Certificate of Deposit (CD), an interest-earning deposit account that has a two-year term and a $250-minimum initial deposit.
  • Your CD is a security deposit - the money you put in upfront, from $250 to $5,000, is the card's credit limit.
  • Earn interest on your CD - your deposit is guaranteed to grow. Plus the money is yours to keep as long as you don't default on your payments.
  • Start building your credit - opening a CD lets you get a credit card even if you don't have a credit history or have bad credit.
  • Before starting your application, USAA will ask you a few questions to establish your online access and eligibility with USAA.
  • If you are not eligible, USAA credit cards and other products may still be available.
Intro APR Intro APR
Period
Regular
APR
Annual
Fee
Intro Balance
Transfer
Credit
Needed
N/A N/A 9.90% (Variable) $35 N/A Bad Credit

First Progress Platinum Elite MasterCard® Secured Credit Card
First Progress Platinum Elite MasterCard® Secured Credit Card
Apply Now...
  • Nationwide Program though not yet available in NY, IA, AR, or WI
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Good for Car Rental, Hotels; Anywhere Credit Cards are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $300 -- $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • 24/7 Online Access to Your Account
Intro APR Intro APR
Period
Regular
APR
Annual
Fee
Intro Balance
Transfer
Credit
Needed
N/A N/A 19.99% (Variable) $29 N/A Bad Credit

Published or Updated: January 6, 2014
About Rob Berger

Rob founded the Dough Roller in 2007. A litigation attorney in the securities industry, he lives in Northern Virginia with his wife, their two teenagers, and the family mascot, a shih tzu named Sophie.

Comments

  1. Brenda Russell says:

    All I am trying to do is subscribe to your newsletter.

  2. Glory says:

    Fantastic publish, very informative. I ponder why the opposite specialists of this sector don’t understand this. You should continue your writing. I’m confident, you have a great readers’ base already!|What’s Happening i am new to this, I stumbled upon this I’ve found It positively useful and it has helped me out loads. I am hoping to give a contribution & help other users like its helped me. Good job.

  3. Iura says:

    I wonder if you open a secure credit card, does the bank pulls a hard check on your credit history. I know it affects your credit if you do too many hard-pulls so I’m not sure.

    • Rob Berger says:

      Lura, they will do a hard pull you your credit, just like any credit card application. By itself, it shouldn’t hurt your score by a lot, however.

  4. Capital One Secured credit card and Open Sky Secured card are 2 of the best secured credit cards for people to build or rebuild credit.

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