10+ Best Secured Credit Cards For Low Income Families

Are you trying to improve your credit score without overspending? See our picks for the best secured credit cards for low income families.

If you are finding it tough To qualify for traditional credit cards, secured credit cards may be a stepping stone toward building your credit. 

We’ve reviewed the options available to bring you the best secured credit cards. Our goal is to help you find a card that supports your journey toward better credit health.

Best Secured Credit Cards

Here are the top secured credit cards that will help you achieve your financial goals:

#1. BankAmericard® Secured Credit Card

• 🌟 Best for: Rebuilding credit
• 💳 Annual Fee: $0
• 📈 Regular APR: 26.24% variable
• 💵 Min. deposit: $200

Why we chose it

This card offers a path to an unsecured card after a year of responsible use. You benefit from Bank of America’s resources, such as financial education tools and customer support.

Bank of America’s online and mobile banking tools are top-notch. You get to manage your account from anywhere. This ease of access ensures you stay on top of your financial health.

The card also offers fraud protection and alerts. You receive notifications about any suspicious activity. This added layer of security gives you peace of mind while you focus on improving your credit score.

Source: BankAmericard 

#2. U.S. Bank Secured Visa® Card

• 🌟 Best for: Flexible deposit options
• 💳 Annual Fee: $0
• 📈 Regular APR: 29.24% variable
• 💵 Min. deposit: $300

Why we chose it

This card offers a combination of flexibility, potential for growth, and valuable benefits. The flexible deposit options make it suitable for various financial situations. The chance to upgrade to an unsecured card provides a clear path to better credit.

When you choose the U.S. Bank Secured Visa® Card, you get a reliable tool to build or rebuild your credit.The ability to manage your account online further makes it a practical choice. 

Source: U.S. Bank Secured Visa Card

#3. Citi® Secured Mastercard® Credit Card 

• 🌟 Best for: Global acceptance and travel use
• 💳 Annual Fee: $0
• 📈 Regular APR: 27.74% variable 
• 💵 Min. deposit: $200

Why we chose it

Citi’s extensive network ensures you can make purchases and access cash without hassle. This card also helps you build or rebuild your credit score.

No annual fee is another significant advantage. You won’t have to worry about extra costs just to keep the card active. This feature makes it easier for you to manage your finances without additional burdens. 

The card’s variable APR is also competitive compared to other secured credit cards. It ensures you won’t face exorbitant interest rates.

Source: Citi

#4. Chime Credit Builder Secured Visa® Credit Card

• 🌟 Best for: Building credit
• 💳 Annual Fee: $0
• 📈 Regular APR: No
• 💵 Min. deposit: $200

Why we chose it

You will love the Chime Credit Builder Secured Visa® Credit Card for its simplicity and affordability. It has no annual fees, no interest charges, and no credit check to apply. 

These features make it an excellent option for low-income families. You can easily build or improve your credit score since Chime reports to all three major credit bureaus. 

Unlike many other secured cards, you won’t have to worry about hidden fees. Your deposit acts as your credit limit. You also gain access to Chime’s user-friendly mobile app. This helps you monitor your credit-building journey.

Source: Chime Credit Builder 

#5. Capital One Platinum Secured Credit Card

• 🌟 Best for: Low refundable security deposits
• 💳 Annual Fee: $0
• 📈 Regular APR: 29.99% variable
• 💵 Min. deposit: $49, $99, or $200

Why we chose it

You benefit from a customizable credit limit based on your security deposit. You might start with a $200 credit line by depositing $49, $99, or $200. This card offers a quick path to a higher credit line without requiring an additional deposit. 

You also get access to Capital One’s CreditWise tool. This helps you monitor your credit score. You also have the chance to upgrade to an unsecured card with responsible use.

Source: Capital One Platinum Secured Credit Card 

#6. Discover it® Secured Credit Card

• 🌟 Best for: Cash back rewards
• 💳 Annual Fee: $0
• 📈 Regular APR: 28.24% variable
• 💵 Min. deposit: $200

Why we chose it 

You earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. You also earn unlimited 1% cash back on all other purchases. 

This card requires a refundable security deposit. It usually starts at $200 and it becomes your credit limit. You can build or rebuild your credit while earning rewards. 

There’s no annual fee. You also get a free FICO® Credit Score to monitor your progress. These features make it a top pick for low-income families looking to improve their credit.

Source: Discover

#7. Self-Credit Builder Account with Secured Visa® Credit Card

• 🌟 Best for: Combined savings and credit building 
• 💳 Annual Fee: $25 per month
• 📈 Regular APR: 28.74% variable
• 💵 Min. deposit: $100

Why we chose it

Self’s combination of a savings account and a secured credit card is a rare feature. This dual approach ensures you develop both savings habits and good credit. 

The card offers flexible payment plans. This lets you choose an option that fits your budget. You also earn interest on your savings. This gives you a little extra for your money.

Source: Self-Credit Builder

#8. Capital One Quicksilver Secured Cash Rewards Credit Card

• 🌟 Best for: Cash back rewards
• 💳 Annual Fee: $0
• 📈 Regular APR: 29.99%
• 💵 Min. deposit: $200 (Refundable)

Why we chose it

You deserve a credit card that works as hard as you do. The Capital One Quicksilver Secured Cash Rewards Credit Card offers excellent benefits with no annual fee. You can earn unlimited 1.5% cash back on every purchase, which means more savings for you. The card also reports to all three major credit bureaus, helping you build or rebuild your credit effectively.

Starting with a security deposit as low as $200, you can get a credit limit that matches your deposit. You can also qualify for a higher credit limit after making your first five monthly payments on time. This flexibility makes it easier for you to manage your finances and improve your credit score.

Source: Capital One Quicksilver 

#9. OpenSky® Secured Visa® Credit Card

• 🌟 Best for: No credit check
• 💳 Annual Fee: $35
• 📈 Regular APR: 25.64% variable
• 💵 Min. deposit: $200

Why we chose it

The OpenSky® Secured Visa® Credit Card shines because it doesn’t require a credit check. You can build or rebuild your credit without worrying about your current score. The application process is quick and stress-free. You only need to provide a refundable security deposit. This card reports to all three major credit bureaus.

Interest rates are competitive, making it easier to manage your payments. You also get flexible credit limits. This ranges from $200 to $3,000, based on your deposit. No credit check means no hard inquiry on your credit report. This advantage helps you avoid potential dips in your credit score.

Source: OpenSky 

#10. First Progress Platinum Elite Mastercard® Secured Credit Card

• 🌟 Best for: Low ongoing APR 
• 💳 Annual Fee: $39
• 📈 Regular APR: 25.24% variable
• 💵 Min. deposit: $200

Why we chose it

You need a secured credit card with a low ongoing APR. The First Progress Platinum Elite Mastercard® Secured Credit Card offers just that. It helps you manage your expenses without high-interest rates. You can build or rebuild your credit score effectively. The application process is simple and accessible. No minimum credit score is required.

This card is ideal for low-income families aiming to improve their financial situation. You can deposit as little as $200. This becomes your credit limit. Monthly reporting to the major credit bureaus further ensures your credit score benefits from responsible usage.

Source: First Progress Platinum Elite Mastercard 

#11. First Progress Platinum Prestige Mastercard® Secured Credit Card

• 🌟 Best for: Low starting APR 
• 💳 Annual Fee: $49
• 📈 Regular APR: $15.24% variable
• 💵 Min. deposit: $200

Why we chose it

This secured credit card distinguishes itself with its low APR. You won’t find many secured cards with such favorable terms. The application process doesn’t demand perfect credit. You can start improving your credit score almost immediately after approval.

Low fees make this card even more appealing. You won’t face hefty charges. This is crucial when you’re managing a tight budget. So, the First Progress Platinum Prestige Mastercard® Secured Credit Card offers a practical, user-friendly option to strengthen your financial future.

Source: Mastercard 

#12. Credit Builder Secured Visa® Credit Card

• 🌟 Best for: Simple credit building 
• 💳 Annual Fee: $0
• 📈 Regular APR: 25.99%
• 💵 Min. deposit: $300

Why we chose it

The Credit Builder Secured Visa® Credit Card is a top choice for straightforward credit building. It has clear terms and no hidden fees. You need a small deposit, which acts as your credit limit. This makes it easy to manage your spending.

We chose this card for its simplicity. The application process is quick. You can qualify even with no credit history. This card reports to all three major credit bureaus. This helps you build credit faster. The low annual fee is another plus. You won’t break the bank while improving your credit score.

Source: Armed Forces Bank

#13. Merrick Bank Secured Credit Card

• 🌟 Best for: Higher credit line
• 💳 Annual Fee: $36. Then increases by $3 per month
• 📈 Regular APR: 22.79%
• 💵 Min. deposit: $200

Why we chose it

The Merrick Bank Secured Credit Card offers a rare opportunity to increase your credit limit based on your payment history. You won’t need to add extra funds to your security deposit to enjoy a higher credit line.

This feature is a significant advantage for managing your finances effectively. Plus, Merrick Bank reports to all three major credit bureaus to help you build a positive credit history. This card also provides free access to your FICO score. 

Source: Merrick Bank 

What are the Benefits of Secured Credit Cards?

Secured credit cards offer many benefits. Especially for low-income families. These cards are easy to get and help you manage your finances better. Let’s explore how they can benefit you.

#1. Easy Approval

Secured credit cards are easier to get than regular credit cards. Even if you have bad credit or no credit history, you can still qualify. All you need is a refundable security deposit. This makes secured credit cards a great option if you’re starting to build or rebuild your credit.

#2. Build or Rebuild Credit

Using a secured credit card responsibly can help you build or rebuild your credit. Make small purchases and pay off your balance on time each month. Your activity is reported to the credit bureaus. This helps improve your credit score over time. A better credit score opens up more financial opportunities for you.

#3. Manageable Spending Limits

Secured credit cards usually have lower spending limits. This can help you control your spending. Since your credit limit is based on your deposit, it’s harder to overspend. This makes it easier to stay within your budget and avoid debt.

#4. Teaches Financial Discipline

Having a secured credit card encourages good financial habits. You learn to pay your bills on time and manage your spending. This discipline is essential for maintaining good credit and financial stability.

#5. Security Deposit Protection

Your security deposit protects you and the credit card issuer. If you can’t pay your balance, the issuer uses your deposit to cover it. This lowers the risk for the issuer and helps you get approved. You get your deposit back when you close the account in good standing or upgrade to an unsecured card.

#6. Transition to Unsecured Credit Cards

Many secured credit cards offer a path to unsecured cards. After a period of responsible use, you might qualify for an unsecured card. This upgrade often comes with better benefits, higher limits, and no deposit requirement. It shows that you’ve built a good credit history.

#7. Acceptance and Convenience

Secured credit cards are widely accepted. You can use them just like regular credit cards. This means you can make purchases online, book travel, and shop at stores that accept credit cards. It’s a convenient way to pay without carrying cash.

#8. Access to Credit Card Rewards

Some secured credit cards offer rewards programs. You can earn points, cash back, or other rewards for your purchases. This adds extra value to your spending. Be sure to choose a card that offers rewards that benefit you the most.

#9. Fraud Protection

Secured credit cards come with fraud protection. If your card is lost or stolen, you can report it, and the issuer will take care of it. You’re usually not liable for unauthorized charges. This adds peace of mind when using your card.

#10. Budgeting Tools

Many secured credit cards come with online tools and mobile apps. These tools help you track your spending, set budgets, and monitor your account. They make it easier to manage your finances and stay on top of your payments.

#11. Emergency Funds

A secured credit card can act as an emergency fund. If you face unexpected expenses, you can use your card to cover them. Just remember to pay off the balance as soon as possible to avoid interest charges.

#12. Improves Financial Inclusion

Secured credit cards provide access to credit for those who might not qualify for other types of credit. This helps you join the financial system and enjoy the benefits of having credit. It’s a step towards financial independence and stability.

What are the Disadvantages of Secured Credit Cards?

Secured credit cards can be a helpful tool for building or rebuilding credit. However, they do have some downsides. Here’s what you need to know about the disadvantages of secured credit cards:

#1. Higher Fees and Interest Rates

Secured credit cards often come with higher fees. You might need to pay an annual fee just to have the card. Some cards also charge application fees. Plus, the interest rates on secured credit cards are usually higher than those on regular credit cards. If you carry a balance, you’ll end up paying more in interest.

#2. Security Deposit

You need to make a security deposit to get a second credit card. This deposit is usually equal to your credit limit. 

For example, if you want a $500 credit limit, you need to deposit $500. This money is held by the credit card company as collateral. This means you cannot use your money for other expenses. It is tied up.

#3. Low Credit Limits

Secured credit cards usually have low credit limits. Since your credit limit is based on your deposit, you might start with a small limit. This can be restrictive. It can make it hard to cover larger expenses. It might also limit how much you can improve your credit score since credit utilization is a factor in credit scoring.

#4. Limited Rewards and Benefits

Secured credit cards often have fewer rewards and benefits than regular credit cards. You might not earn cashback, points, or travel rewards. Additionally, you may miss out on perks like extended warranties or purchase protection. This can make secured credit cards less appealing if you’re used to these benefits.

#5. Impact on Credit Score

While secured credit cards can help build your credit, they can also hurt it. If you miss a payment or max out your card, it can negatively affect your credit score. It’s crucial to use your card responsibly. So, always make payments on time and keep your balance low. This way, you can avoid hurting your credit.

#6. Conversion to Unsecured Cards

Not all secured credit cards automatically convert to unsecured cards. Some secured cards require you to close your account and apply for a new unsecured card. This can be inconvenient. It might also temporarily lower your credit score since closing an account can affect your credit history.

#7. Availability

Secured credit cards may not be available to everyone. Some banks and credit card issuers have strict requirements. You might need to meet certain criteria, like having a job or a bank account. This can make it difficult for some people to qualify. If you don’t meet these requirements, you might not be able to get a secured card.

#8. Credit Limit Increases

Getting a higher credit limit on a secured credit card can be challenging. You might need to make an additional deposit. Some issuers don’t offer credit limit increases at all. This can limit your purchasing power. It can also affect your credit utilization ratio, which is important for your credit score.

#9. Additional Monitoring

With secured credit cards, you need to monitor your account closely. Watch for any fees and charges. Keep track of your spending to avoid maxing out your card. You also need to ensure you’re making payments on time. This extra monitoring can be time-consuming. It adds another task to your financial routine.

#10. Limited Issuer Options

Not all banks or credit card issuers offer secured credit cards. Your options might be limited. This can make it harder to find a card that fits your needs. You might need to compromise on features, fees, or benefits. Limited options can also mean less competitive terms.

#11. Potential for Mismanagement

If you’re not careful, you can easily mismanage a secured credit card. Overspending or missing payments can hurt your credit. It’s important to use your card wisely. Make a budget and stick to it. Set up payment reminders to avoid late fees. Responsible use is key to benefiting from a secured credit card.

Secured vs. Unsecured Credit Cards: What’s the Differences?

Choosing the right credit card can be confusing. There are secured and unsecured credit cards. Both have their uses, but they work differently. Let’s break down the differences so you can make the best choice for your needs.

What is a Secured Credit Card?

A secured credit card needs a deposit. This deposit is your credit limit. For example, if you deposit $200, your credit limit is $200. This deposit protects the lender. If you don’t pay your bill, the lender can use your deposit.

Why would you choose a secured credit card?

#1. Easier to Get

If you have bad or no credit, it’s easier to get a secured card. Lenders are more willing to give these cards because they have your deposit as security.

#2. Build or Rebuild Credit

Using a secured card responsibly helps you build or rebuild your credit. Pay your bills on time, and your credit score can improve.

#3. Learn to Manage Credit

A secured card is a great way to learn how to manage credit. You can practice using a credit card without the risk of high debt.

What is an Unsecured Credit Card?

An unsecured credit card does not need a deposit. Your credit limit is based on your creditworthiness. The lender decides your limit based on your credit score, income, and other factors.

Why would you choose an unsecured credit card?

#1. No Upfront Deposit

You don’t need to pay a deposit to get an unsecured card. This makes it more accessible if you don’t have extra cash.

#2. Higher Credit Limits

Unsecured cards often come with higher credit limits. This can be useful if you need more buying power.

#3. Rewards and Perks

Many unsecured cards offer rewards like cash back, points, or miles. They may also have perks like travel insurance or purchase protection.

Key Differences

Now that you know what secured and unsecured cards are, let’s look at the key differences.

Feature	Secured Credit Card	Unsecured Credit Card
Security Deposit	Requires a deposit. Your credit limit equals your deposit.	No deposit needed. Credit limit is based on credit history.
Approval Chances	Easier to get with bad or no credit.	Harder to get with bad or no credit.
Credit Limits	Usually low, matching your deposit.	Can be higher, based on your credit worthiness.
Rewards and Perks	Rarely offers rewards.	Often comes with rewards and perks.
Purpose	Ideal for building or rebuilding credit.	Suitable for those with good credit.

Which One is Right for You?

Think about your credit history. If you have poor or no credit, a secured card might be best. It can help you build credit safely. If you have good credit, an unsecured card could offer more benefits.

Tips to Help You Choose the Right Secured Credit Card

Here are some key tips to guide you in selecting the best card for your needs.

1. Check the Interest Rates

Lower interest rates mean you pay less in the long run. This is crucial for low-income families trying to save every penny. You reduce the cost of carrying a balance by choosing a card with low rates.

2. Look for Low Fees

Fees can add up quickly and strain your budget. Annual fees, late payment fees, and foreign transaction fees are some to watch out for. Selecting a card with minimal fees ensures more of your money goes towards your expenses and savings. This makes a big difference when managing a tight budget.

3. Consider the Deposit Requirements

Secured credit cards require a security deposit. Some cards require higher deposits than others. A lower deposit requirement can make it easier for you to get started. It also means you can keep more of your savings accessible for other needs.

4. Review the Credit Reporting Policy

The main purpose of a secured credit card is to build or improve your credit score. Ensure the card issuer reports your payments to all three major credit bureaus: Experian, Equifax, and TransUnion. This helps you build a positive credit history more effectively. 

5. Examine the Rewards Program

Some secured credit cards offer rewards, like cash back or points for purchases. While rewards shouldn’t be the primary factor, they can provide extra value. Earning rewards on your everyday spending can help stretch your budget. This is beneficial if you are looking to get more out of every dollar spent.

6. Check for Upgrade Options

A good secured credit card should offer a path to upgrade to an unsecured card. Upgrading can save you from having to apply for a new card and potentially taking a hit on your credit score. This makes it easier to transition to better credit products as your financial situation improves.

7. Assess the Customer Service Quality

Reliable customer service can make a big difference, especially when you face issues or have questions. Good customer service provides peace of mind and helps resolve problems quickly. Knowing you can count on your card issuer for support ensures smoother financial management.

8. Read Reviews and Compare Options

Reviews from other users can provide insights into the card’s benefits and drawbacks. Comparing options helps you find the card that best suits your needs. Taking the time to read reviews ensures you make an informed decision.

Conclusion

Secured credit cards provide a practical way to build or rebuild your credit score. These cards require a deposit to serve as your credit limit. As you use these cards responsibly, you prove your creditworthiness to lenders.

You’ll find that these cards often come with straightforward terms. Some even offer rewards. Plus, using a secured credit card wisely teaches good financial habits.

If you’ve found this article helpful, share it with friends and family. They might be looking for ways to improve their credit scores. Remember, better credit opens doors to more financial opportunities.

Frequently Asked Questions 

Q1. How does a secured credit card work?

You provide a cash deposit, and the bank issues a credit card with a limit equal to your deposit. You use the card like any other credit card. Make purchases, pay off the balance each month, and your activity gets reported to the credit bureaus.

Q2. Who should get a secured credit card?

Secured credit cards are ideal if you have a limited or poor credit history. They are great for people with no credit or bad credit who want to improve their credit score. Young adults, recent immigrants, and those recovering from financial setbacks can benefit.

Q3. How much should you deposit for a secured credit card?

The deposit amount varies by card issuer. Some require as little as $200, while others may need $2,000 or more. Consider your budget and how much credit you need. Remember, the deposit usually equals your credit limit.

Q4. Do secured credit cards help build credit?

Yes, secured credit cards are designed to help build or rebuild your credit. Your payment history and card usage get reported to the credit bureaus. Timely payments and responsible use can improve your credit score over time.

Q5. Can you get your deposit back?

You can get your deposit back, usually after closing the account or upgrading to an unsecured card. The deposit is refunded if the account is in good standing and there’s no outstanding balance. Some issuers offer an upgrade path after a period of responsible use.

Q6. What are the fees associated with secured credit cards?

Fees vary by issuer. Common fees include annual fees, application fees, and monthly maintenance fees. Some cards might also have foreign transaction fees, balance transfer fees, and cash advance fees. Always read the terms and conditions before applying.