Best Secured Credit Cards: Save $312/Year with These Picks
Best Secured Credit Cards: Save $312/Year with These Picks
Looking for the best secured credit cards? Here are your top options. Secured credit cards are a great way to build or rebuild credit, and they can save you money in the process. With a secured card, you can increase your credit score by up to 200 points in just a year, according to a TransUnion study. That translates to better loan rates and saving as much as $312 annually on interest.
Why This Matters
Secured credit cards are essential if you're looking to improve your credit score. A stronger credit score means lower interest rates on loans, potentially saving you hundreds annually. For example, with a 3% reduction in interest on a $10,000 loan, you save $300 each year.
What Are Secured Credit Cards?
Secured credit cards require a deposit that acts as your credit limit. They're designed for people with poor or no credit history to build credit responsibly.
Top Picks for Best Secured Credit Cards
- Discover it® Secured Card: No annual fee and 2% cash back at gas stations and restaurants.
- Capital One Platinum Secured Card: Deposit requirements as low as $49 and automatic credit line reviews.
- OpenSky® Secured Visa® Credit Card: No credit check required, making it accessible for everyone.
Step-by-Step: How to Choose the Best Secured Credit Card
- Check your current credit score. BON Credit can do this for free.
- Determine how much you can deposit for a secured card.
- Compare card benefits like cashback and annual fees.
- Apply and use the card responsibly to build credit.
BON Credit does this automatically — for free. It scans your accounts, finds what's costing you money, and tells you exactly what to do. Download the app →
Common Mistakes or Myths
Many people think secured cards don't help your credit score. That's a myth. When used responsibly, they can significantly boost your score.
Another mistake is ignoring the annual fees. Compare these before you apply, as they can eat into any benefits.
FAQ
How do secured credit cards work?
You deposit an amount that becomes your credit limit, and you use the card like any other credit card to build credit.
Can I get my deposit back?
Yes, your deposit is refundable if you close the account in good standing or upgrade to an unsecured card.
Do all secured cards have fees?
No, not all. Some cards have no annual fees, like the Discover it® Secured Card.
Does BON Credit help with secured cards?
Yes, BON Credit helps monitor and improve your credit score, guiding you on the best card options.
Ready to find the best secured credit card for you? BON Credit scans your options and simplifies the decision. Start now →
Key takeaways:
- Secured credit cards can boost your credit score by up to 200 points.
- Save as much as $312/year on interest with a better credit score.
- BON Credit helps you track and improve your credit for free.
- Choose cards with no or low fees for maximum benefits.