Secured Credit Cards
Cards backed by a refundable cash deposit, commonly used to build or rebuild credit.
A secured credit card is backed by a cash deposit that you place with the card issuer. The deposit serves as collateral and typically becomes your credit limit. These cards are commonly used by people who are building credit for the first time, rebuilding after credit challenges, or working to establish a credit history in a new country. Like other credit products, secured cards require responsible use—making payments on time and managing your balance—to help establish a positive credit record. Terms, fees, deposit requirements, and other features vary significantly between issuers, so it's important to compare options before applying.
Who it's for
People who are new to credit or rebuilding it and may not qualify for a traditional (unsecured) card. The refundable security deposit lowers the issuer's risk, which is why secured cards are often more accessible.
How it works
You put down a refundable security deposit, which usually sets your credit limit. You then use the card like any other credit card and make payments. Many issuers report your activity to the credit bureaus, so responsible use — paying on time and keeping balances low — can help you build credit history over time. Many secured cards can later transition to an unsecured card or return your deposit once you qualify.
What to compare
Look for a card that reports to all three major credit bureaus, has reasonable fees, refunds the deposit, and offers a path to graduate to an unsecured card. Compare the deposit requirements and any annual fee. (See the CFPB on secured cards.)
Key terms at a glance
| Card type | Credit-building (secured) |
| Deposit | Refundable; typically sets your credit limit |
| Reports to bureaus | Look for cards that report to all three |
| Best for | Building or rebuilding credit |
| Path forward | Many can graduate to an unsecured card over time |
Pros and cons
Potential advantages
- More accessible for people new to credit or rebuilding it.
- Responsible use (on-time payments, low balances) can help build credit history.
- The security deposit is refundable when you close or upgrade the account in good standing.
Things to watch
- Requires an upfront refundable deposit, which ties up cash.
- Credit limits are often modest, usually tied to the deposit.
- Some carry fees — compare carefully, and avoid cards with excessive fees.
Sources: CFPB — What is a secured credit card?; CFPB — How do I build credit?. Credit-card information follows the U.S. Consumer Financial Protection Bureau (CFPB) and the Federal Reserve; always confirm current rates, fees, and terms with the issuer before applying.
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Compare card offers / get matched →Frequently asked questions
What is a secured credit card?
A secured credit card is backed by a cash deposit you provide, which usually becomes your credit limit and is refundable. Because the deposit reduces the issuer's risk, secured cards are often easier to get and are commonly used to build or rebuild credit. (See the CFPB's definition.)
Will a secured card build my credit?
It can, if the issuer reports your activity to the credit bureaus and you use the card responsibly — paying on time and keeping balances low. Building credit takes time and consistency; no card can guarantee a specific score outcome.