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The Smartest Way to Build Credit with Secured Credit Cards
If you’re looking to establish or rebuild your credit, a secured credit card is one of the best financial tools available. Whether you’re a college student, a young professional, a new U.S. resident, or someone recovering from past financial mistakes, the right secured credit card can help you build credit history fast and qualify for better financial opportunities.
In this guide, we’ll explore the best secured credit cards, how they work, and the key factors to consider before applying.
Understanding Credit Scores & How Long It Takes to Improve Credit
The average credit score in the U.S. is around 714, according to Experian. However, many people fall below this number due to missed payments, high credit utilization, or limited credit history.
🔹 How long does it take to improve your credit score?
- Increase by 50 points: Typically 3 to 6 months with responsible credit use.
- Poor to Fair (Below 580 to 580-669): Usually takes 6 months to 1 year of consistent on-time payments.
- Fair to Good (580-669 to 670-739): Can take 12 to 24 months, depending on your financial habits.
📌 Key Strategies for Faster Credit Improvement:
- Always pay at least the minimum due on time.
- Keep your credit utilization below 30% of your limit.
- Avoid applying for multiple new credit accounts within a short period.
- Monitor your credit score regularly and dispute any inaccuracies.
What Are Secured Credit Cards & How Do They Work?
If you are looking to help build credit history from scratch or rebuild credit after an unfortunate setback, applying for a secured credit card to help build credit fast can be the way to go. Secured cards that can help build (or rebuild) credit fast require you to provide a cash security deposit, usually equal to your credit line. The card-issuing bank holds the deposit in case you don’t pay your bill; you do get your deposit back when you upgrade to a regular “unsecured” card or close the account in good standing. Since the deposit protects the issuing bank from losing money, secured cards are easier for people with bad credit or no credit to qualify for.
As you use the secured card to help build credit history, the issuing bank reports your activity to the three credit bureaus – the companies that compile the credit reports. These credit reports will form the basis of your credit scores. Keeping your balance relatively low and paying your bill on time every month, will help you to strengthen your credit.
At the end of the day, the best secured cards that can help build (or rebuild) credit fast with is the lowest cost one that you can get approved for. A secured card’s deposit is fully refundable, and your top priority should be to build credit inexpensively. Fortunately, there are several no-fee (or low-fee) secured credit cards to build credit with.
Credit Bureau Reporting
Secured cards report to the three major credit bureaus each month — Experian, Equifax, and TransUnion, just like unsecured cards, and the credit reports do not make a distinction between secured and unsecured credit cards. Your goal should be to qualify for a decent unsecured card in about a year’s time by learning to use your secured credit card responsibly. Responsible use generally means on-time monthly payments and not maxing out your spending limit.
Generally, unlike prepaid cards, secured credit cards help build credit because they report to credit agencies, making them an ideal choice for those with no credit history or poor credit. In this Guide we will also highlight the selected unsecured credit cards that are targeted towards the credit building audience as an alternative to the secured credit cards.
Credit and Cents’ Top Picks for the Best Credit Cards to Build Credit
1. OpenSky® Plus Secured Visa® Credit Card
✅ Requires No Credit Check – Ideal for building credit fast
✅ $300 – $3,000 Refundable Security Deposit – You set your own credit limit
✅ $0 Annual Fee – Maximize savings while improving your score
✅ Earn Up to 10% Cash Back on select purchases
✅ Reports to All 3 Major Credit Bureaus – Helps boost your credit score quickly
Why We Recommend It: If you want a secured credit card with no credit check and no annual fee, OpenSky® Plus is one of the best choices for credit building.
Why You Should Apply: If you need a secured credit card with no credit check and no annual fee, OpenSky® Plus is an excellent choice. With generous cash back rewards and the ability to set your own credit limit, this card gives you control over your credit-building journey.
2. OpenSky® Launch Secured Visa® Credit Card
✅ Low Security Deposit Requirement – Start with as little as $100
✅ Zero Credit Check – Approval in minutes
✅ Annual Fee: $24 (first year), then $36
✅ All Three Major Credit Bureaus Notification– Ensures responsible use is reflected in your score
✅ Potential to Upgrade to Unsecured – Move to an unsecured card with on-time payments
Why We Recommend It: If you’re looking for a secured credit card with a low upfront deposit and easy approval, OpenSky® Launch is a great option.
Why You Should Apply: If you want a low-deposit secured credit card with cash back rewards, OpenSky® Launch is a strong contender. It’s designed for those with no or poor credit, making it a good first step toward financial independence.
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3. Upgrade Cash Rewards Visa®
✅ No Annual Fee – Keep costs low while building credit
✅ Earn 1.5% Unlimited Cash Back on all purchases
✅ No Credit Impact for Pre-Qualifying
✅ Credit Line Up to $25,000
✅ Fixed Monthly Payments – Helps manage debt responsibly
Why We Recommend It: If you’re looking for a secured credit card alternative that offers cash back, Upgrade Cash Rewards Visa® is a great choice for building credit while earning rewards. For those who have already started building their credit history or have a credit score of 600 plus, pre-qualify for this card with no credit impact.
Why You Should Apply: Unlike traditional secured credit cards, the Upgrade Cash Rewards Card doesn’t require a deposit. You can start building your credit immediately and enjoy cash back rewards on every purchase. Plus, with no annual fee and the ability to use your credit limit as an installment loan, you can maximize your savings while strengthening your financial profile.
4. Reflex® Platinum Mastercard®
✅ Security Deposit Not Required – Unsecured card for those with fair or poor credit
✅ Potential Credit Limit: $300 – $1,000
✅ Pre-Qualify Without Impacting Your Credit Score
✅ Notification to All 3 Major Credit Bureaus
✅ Annual Fee: $75 – $125
Ideal For: Those looking for a short term solution to build credit score without placing a deposit for secured cards. However, a FICO score of around 600 is generally required for approval. Also, annual fee is higher than on our recommended secured credit cards.
Why You Should Apply: If you are in need of credit building and are able to pay the annual fee, this is a good alternative option to build credit fast.
5. Surge® Platinum Mastercard®
✅ Typical Credit Limit: $300 – $1,000
✅ No Security Deposit Required
✅ Reports to All Major Credit Bureaus
✅ Able to Pre-Qualify Without Impacting Your Credit Score
✅ (Year 1 & Onward) Annual Fee : $75 – $125
Ideal For: Those looking for a short term solution to build credit score without wanting to place a deposit for secured cards. However, a FICO score of around 600 is generally required for approval. Also, annual fee is higher than on our recommended secured credit cards.
Why You Should Apply: If you are able to pay the annual fee, a good alternative option to build credit fast.
Which Secured Credit Card Is Best for You?
Choosing the right card depends on your financial goals and credit profile. Compare the options below to determine the best fit for your needs:
| Credit Card | Best For | Deposit Required | Rewards | Annual Fee | Credit Check/ Min FICO Score |
| Bad Credit/No Credit | $300 | Up to 10% Cash Back | $0 | No | |
| Poor/No Credit/Rebuilding | $100 | Up to 10% Cash Back | $25 – $36 | No | |
| Fair/Average/Good Credit | None (Unsecured) | 1.5% Cash Back | $0 | Yes/ 600 | |
| Poor/No Credit | None (Unsecured) | N/A | $75- $125 | Yes/ 600 | |
| Poor/No Credit/Rebuilding | None (Unsecured) | N/A | $75- $125 | Yes/ 600 |
All three options report to all three major credit bureaus, giving you the opportunity to build a solid credit history over time.
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FAQs About Secured Credit Cards
How to Use Secured Credit Cards to Build Credit Responsibly?
Follow these best practices to ensure you’re using your credit card to improve your financial standing:
🔹 Make 100% of your payments on time. Payment history makes up 35% of your credit score, so missing payments can set you back significantly.
🔹 Keep your credit utilization below 30%. If your credit limit is $1,000, try to keep your balance below $300. The lower your utilization, the better for your score.
🔹 Pay more than the minimum due. If you only pay the minimum, interest charges can pile up. Pay off your full balance each month if possible.
🔹 Keep your secured card open for as long as possible. Length of credit history accounts for 15% of your score, so maintaining older accounts can help boost your rating.
🔹 Monitor your credit score and report regularly. Check your reports from Experian, Equifax, and TransUnion to ensure accuracy and dispute any errors.
Can I Get a Secured Credit Card with No Credit History?
Yes! Secured credit cards are designed for individuals with no credit or poor credit history. Many issuers don’t require a credit check, making them an ideal first step toward financial independence.
How Do I Move from a Secured to an Unsecured Credit Card?
Transitioning to an unsecured credit card requires demonstrating responsible credit usage, such as:
✔ Making all payments on time ✔ Keeping utilization low ✔ Avoiding new credit applications ✔ Requesting a credit limit increase
Many secured credit cards offer automatic upgrades after 6-12 months of responsible use.
What Happens to My Security Deposit?
Your security deposit is fully refundable when you:
✔ Upgrade to an unsecured card ✔ Close your account in good standing (with no outstanding balance)
Act Now – Start Building Credit Today
Your credit score is one of the most important financial tools you have. Without a strong credit history, you may face difficulties securing loans, renting an apartment, or even getting approved for a mobile phone plan. Now is the time to take control of your financial future.
📌 Why wait? Apply Now for the Best Secured Credit Card that best fits your needs and start building your credit immediately.
💳 Need additional credit card options to start Building Credit? Click here to get started today!
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