Best Secured Credit Cards 2025: Cards That Graduate to Unsecured

Secured credit cards are the most reliable path to building credit from scratch—or rebuilding after damage.

You deposit money. That deposit becomes your credit limit. You use the card, pay on time, and the issuer reports your positive payment history to credit bureaus. After 6-12 months, you've built real credit.

But not all secured cards are created equal. Some graduate to unsecured cards (returning your deposit). Some offer rewards. Some charge predatory fees. Here are the ones worth getting.

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How Secured Cards Work

The Basic Mechanics

1. Apply: Submit application (approval almost guaranteed)
2. Deposit: Pay security deposit ($200-$2,500 typically)
3. Receive card: Credit limit equals your deposit
4. Use responsibly: Make purchases, stay under 30% utilization
5. Pay on time: Pay statement balance in full
6. Build credit: Positive history reports to bureaus
7. Graduate: After 6-12 months, may upgrade to unsecured card

What Makes a Good Secured Card

Must-haves:

• Reports to all three credit bureaus (Experian, Equifax, TransUnion)
• No (or low) annual fee
• Path to unsecured graduation
• Reasonable deposit requirements

Nice-to-haves:

• Cash back or rewards
• No foreign transaction fees
• Credit score access
• Low deposit minimum

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Best Secured Cards Overall

Discover it® Secured Credit Card

Best for: Earning rewards while building credit

Why it's #1:

• Only secured card with meaningful rewards
• Cashback match doubles first-year earnings
• Automatic graduation review
• No annual fee
• Free FICO score access

Drawback: Discover has smaller merchant network than Visa/Mastercard.

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Capital One Quicksilver Secured Cash Rewards

Best for: Flat-rate rewards simplicity

Why it's excellent:

• May get credit line higher than deposit
• 1.5% unlimited cashback
• Automatic graduation path
• Visa acceptance

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Chime Credit Builder Visa®

Best for: No deposit required

How it works:

• Move money from Chime Spending to Credit Builder
• That amount becomes your available credit
• Purchases draw from that balance
• Payments are automatic

Why it's unique:

• No credit check
• No deposit in traditional sense
• No interest (you're spending your own money)
• Reports as credit card usage

Requirement: Must have Chime checking account.

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Bank of America® Customized Cash Rewards Secured

Best for: Category bonus rewards

Why it's good:

• Only secured card with customizable 3% category
• Preferred Rewards members get bonus
• Graduation to unsecured possible
• BoA relationship benefits

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OpenSky® Secured Visa®

Best for: No credit check at all

Why it matters:

• Guarantees approval (no credit check)
• Doesn't require bank account
• Good for those who can't get other secured cards

Drawback: $35 annual fee, no rewards.

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Best Secured Cards for Business

Wells Fargo Business Secured Credit Card

Why it matters:

• Reports to business credit bureaus (D&B)
• Builds business credit profile
• Path to unsecured business card

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BBVA Secured Visa® Business Credit Card

Why it matters:

• Accessible for new businesses
• Builds business credit history
• Available in most states

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Secured Cards to Avoid

Cards with High Fees

Some secured cards charge:

• High annual fees ($75-$125)
• Monthly maintenance fees
• Application fees
• Processing fees

Avoid: Total card fees exceeding $50/year for basic secured cards.

Cards That Don't Report

Some secured cards don't report to credit bureaus—making them useless for credit building.

Always verify: "Do you report to all three credit bureaus?"

Store Secured Cards

Secured cards from specific retailers:

• Limited use (only at that store)
• Often high fees
• May not report to all bureaus

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Graduation: From Secured to Unsecured

What Graduation Means

When you "graduate," your secured card converts to an unsecured card:

• Your deposit is refunded
• Credit limit may increase
• You keep the same account (age preserved)

Typical Timeline

• 6-8 months: Earliest graduation possible (Discover)
• 12 months: Common graduation timeline
• 18+ months: Slower issuers or borderline accounts

How to Speed Up Graduation

1. Pay on time every month (most important)
2. Keep utilization low (under 30%, ideally under 10%)
3. Use the card regularly (shows active account)
4. Don't carry balances (pay in full)
5. Monitor your credit score (improvement signals readiness)

What If You Don't Graduate?

If you haven't graduated after 12 months:

• Call and ask about upgrade
• Check if you're meeting criteria
• Consider applying for unsecured card elsewhere
• Keep the secured card for account age

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How to Choose Your Secured Card

Prioritize By Situation

Building credit from zero:

• Discover it Secured (best rewards)
• Capital One Quicksilver Secured (simplicity)

Rebuilding after damage:

• OpenSky (no credit check)
• Chime Credit Builder (no traditional deposit)

Building business credit:

• Wells Fargo Business Secured
• Add Net-30 vendor accounts

Minimal budget:

• Chime Credit Builder ($0 to start)
• Any card with $200 minimum deposit

Avoid If Possible

• Annual fees over $35
• Cards that don't graduate
• Cards that don't report to all bureaus
• Cards with monthly fees

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Maximizing Your Secured Card

Usage Strategy

Do:

• Use for small, regular purchases (groceries, gas, subscriptions)
• Keep balance under 30% of limit
• Pay statement balance in full
• Set up autopay for at least minimum

Don't:

• Max out the card
• Miss payments
• Use for cash advances
• Close the card after graduating

The Reporting Cycle

Credit cards report once per month, usually when your statement generates.

To optimize:

1. Make purchases throughout the month
2. Pay down balance before statement date
3. Let small balance report (1-9% utilization)
4. Pay remaining balance after statement

This shows active use while maintaining low utilization.

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Secured Card FAQ

How much deposit should I put down?

Start with the minimum ($200-$300). You can often add more later. The deposit amount doesn't affect credit building—payment behavior does.

Do I get my deposit back?

Yes, when you:

• Graduate to unsecured card
• Close the account in good standing
• In some cases, after demonstrating good behavior

Will a secured card hurt my credit?

No. It helps credit when used responsibly. The "secured" nature isn't reported—it looks like any other credit card.

Can I get denied for a secured card?

Rarely. Most secured cards have minimal requirements. If denied, try OpenSky (no credit check) or Chime (no application).

Should I get multiple secured cards?

Usually not necessary. One secured card plus one credit-builder loan provides good credit mix. Multiple secured cards tie up more deposit money.

How long until I see credit score improvement?

• First score: After 6 months of history
• Significant improvement: 6-12 months
• Good credit (670+): 12-24 months with responsible use

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Your Secured Card Action Plan

Week 1

• Review cards in this guide
• Choose card based on your situation
• Gather required documents
• Apply (most approve instantly)

Week 2-4

• Make deposit when approved
• Activate card when received
• Set up autopay for full balance
• Make first small purchase

Month 2-6

• Use card for 2-3 small purchases monthly
• Pay statement balance in full
• Monitor credit score (free through card or Credit Karma)
• Keep utilization under 30%

Month 7-12

• Check graduation eligibility
• Request graduation if not automatic
• Consider applying for unsecured cards
• Continue responsible use

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Next Steps

A secured card is your entry point to the credit system. Pick one from this list, make the deposit, use it responsibly, and you'll have real credit history within 6-12 months.

Start with Discover it Secured if you want rewards, or Chime Credit Builder if you want to avoid a traditional deposit.

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Need help building credit? Freedom Consulting helps individuals create personalized credit-building strategies. Book a free consultation to accelerate your credit journey.

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Related: Personal Credit Score Guide | How to Improve Credit Score Fast

Disclaimer: Card terms change. Verify current offers before applying. Credit decisions are made by card issuers.

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Continue Learning

This article is part of our Personal Credit Score: The Ultimate Guide to 800+ Credit guide series.

Related articles in this series:

• How to Improve Your Credit Score Fast: 30-Day Action Plan
• The Authorized User Strategy: Complete Guide to Boosting Your Score
• Credit Utilization Explained: Why 30% is Not the Magic Number