Best Secured Credit Cards in 2021 for Rebuilding Your Credit Score
Discover the top secured credit cards of 2021 designed for credit rebuilding and improving your financial health. Explore options like Capital One, Discover, OpenSky, Citi, and U.S. Bank, each offering unique benefits tailored to different credit situations. Learn how these secured cards can help you establish or rebuild your credit history with flexible deposits, cashback rewards, and manageable fees. Whether you're a beginner or recovering from past credit issues, this comprehensive guide will help you choose the best secured card for your financial growth.
Top Secured Credit Cards of 2021 for Credit Improvement
Secured credit cards are essential financial tools designed to help individuals rebuild or establish their credit profiles. Unlike traditional credit cards, secured cards require a cash deposit that acts as collateral, providing security for the issuer and making them an excellent choice for those with poor or limited credit histories. The deposit typically aligns with the approved credit limit, which remains within the issuer's control until the account is closed or upgraded to an unsecured credit card. These cards are especially beneficial for individuals seeking to improve their credit scores, build positive credit history, or recover from past financial setbacks.
In 2021, several secured credit cards stood out for their features, affordability, and opportunities for credit growth. Below are some of the most popular and highly recommended secured cards available this year:
Capital One Secured Mastercard
This card is highly regarded for its flexible security deposit options and the potential to increase your credit limit beyond your initial deposit. Unlike some secure cards that fix your spending limit strictly to your deposit, Capital One allows eligible cardholders to qualify for credit limit increases, helping them to build credit more effectively. The deposit amount can be as low as $49, making it accessible for many users, with the possibility of higher deposits for increased credit lines. The Capital One Secured Mastercard is an excellent choice for beginners and those working to improve their credit standing.
Discover It Secured Credit Card
This card is popular among consumers due to its no annual fee policy and its rewarding cashback program. It offers 1% unlimited cashback on all purchases, which is quite rare for secured cards. Additionally, if users spend up to $1,000 on gas and dining each quarter, they can earn double cashback—2%. The minimum deposit required is just $49 to get started with a $200 credit line, which can be increased with higher deposits up to $1,000. Discover also offers opportunities for on-time payments to be reviewed periodically for potential upgrades, providing a pathway to unsecured credit in the future.
OpenSky Secured Visa Card
If you have a significantly damaged credit history, the OpenSky Secured Visa offers a straightforward solution. The key advantage is that it does not require a credit check for application approval, making it accessible to those with poor credit scores or limited credit histories. It has an annual fee of $35 and requires a security deposit ranging from $200 to $3,000, tailored to your desired credit limit. This card is ideal for individuals with challenging credit situations seeking a manageable way to rebuild their financial reputation without the hassle of approval barriers.
Citi Secured Mastercard
The Citi Secured Mastercard is designed for simplicity and reliability. It does not offer rewards or cashback but provides necessary credit-building features without upfront fees or annual charges. Consistent responsible use—such as paying bills on time and maintaining a zero balance—can lead to an upgrade to an unsecured credit card after 18 months. This card serves as a solid foundation for those new to credit building or recovering from credit issues, offering a straightforward path toward improved creditworthiness.
U.S. Bank Secured Visa Card
This secured card is well-suited for consumers seeking higher credit limits and flexible repayment options. It has no annual fee and offers a competitive annual percentage rate (APR). The credit limit can go up to $5,000 depending on the deposit amount, providing more room for larger purchases or establishing substantial credit history. The card also offers features like auto bill pay, which helps prevent late payments and maintain a good credit score. For those aiming to build or rebuild credit with higher spending limits, the U.S. Bank Secured Visa is an excellent choice.
By carefully choosing the right secured credit card, consumers can take significant steps toward reconstructing their financial profiles, gaining access to more credit opportunities, and improving their overall credit scores. Whether you're starting out, recovering from past financial difficulties, or looking for a card with specific benefits, these options represent some of the best choices in 2021 to meet your needs.
