When Do You Get Security Deposit Back From Credit Card
Best Overall
Discover it® Secured Credit Card
Up to 2% Reward Rate
Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earnRead More
Welcome Bonus
Cashback Match™
Regular APR
22.99% Variable
Credit Score
New/Rebuilding Credit
Why We Picked It
In the secured credit world, the Discover it® Secured Credit Card stands above the competition. With an unlimited 1% cash back rate on all purchases, plus 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter, no penalty APR and no annual fee, we love this card for those who need to rebuild their credit. The matching cash back reward at the end of your first year is a sweet bonus.
Pros & Cons
- No annual fee
- Cash back rewards earning is uncommon for a secured card
- Free FICO score access each month
- Cashback Match doubles cash back rewards earning at the end of the first year
- Rewards are capped
- Secured cards don't provide many of the perks unsecured cards do
- Secured cards require refundable deposits
Card Details
- No Annual Fee, earn cash back, and build your credit with responsible use.
- Using your secured credit card helps build a credit history with the three major credit bureaus. Generally, prepaid and debit cards can't do that.
- Establish your credit line with your tax return by providing a refundable security deposit of at least $200. Bank information must be provided when submitting your deposit.
- Automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.*
- Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter. Plus, earn unlimited 1% cash back on all other purchases – automatically.
- Discover is accepted nationwide by 99% of the places that take credit cards.
- Get 100% U.S. based customer service & get your free Credit Scorecard with your FICO® Credit Score.
- Intro Offer: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you've earned at the end of your first year! There's no minimum spending or maximum rewards. Just a dollar-for-dollar match.
- Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
- Click "Apply Now" to see rewards, FICO® Credit Score terms, Cashback Match™ details & other information.
Choosing Your Own Bonus Category
Bank of America® Customized Cash Rewards Secured Credit Card *
Up to 3X Reward Rate
Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvementRead More
Regular APR
23.99% variable
Credit Score
Bad/Poor (0 - 649)
Why We Picked It
A secured card with no annual fee and the ability to earn rewards, this Bank of America card can provide a way forward for those needing to build their credit profile.
Pros & Cons
- Earns rewards while building credit
- No annual fee
- Reports to FICO
- Requires security deposit
- Bonus categories require opt-in
Card Details
- Add your Bank of America® credit card to your mobile device then shop in-store or in-app using Apple Pay®, Google Pay™ or Samsung Pay
- 23.99% variable APR on purchases and balance transfers
- No annual fee
- Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores, or home improvement & furnishings
- Earn 2% cash back at grocery stores and wholesale clubs
- Earn unlimited 1% cash back on all other purchases
- You'll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%
- A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
- Now, you can access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
Choosing Your Own Bonus Category
U.S. Bank Cash+® Visa® Secured Card *
Up to 5X Reward Rate
5% cash back on on the first $2,000 in combined eligible purchases each quarter in two categories of choice, 2%Read More
Regular APR
25.99% variable
Credit Score
Bad/Poor (0 - 649)
Why We Picked It
Not only does it earn rewards, which is rare among secured cards but you can choose your own bonus adventure from a list of several everyday common spending areas.
Pros & Cons
- High cash rewards rates in select categories, especially for a secured card
- Ability to graduate to an unsecured card with good payment behavior
- Reports to all three major credit bureaus
- Cardholders must enroll each quarter to get the bonus rewards
- Rewards expire after 36 months if not redeemed
- Categories eligible for higher earnings may not align with your spending
Card Details
- Earn 5% cash back on on your first $2,000 in combined eligible purchases each quarter in two categories you choose, 2% cash back on eligible purchases in your choice of one everyday category (like gas stations, grocery stores and restaurants) and 1% cash back on all other eligible purchases
- Choose payment due date
- $0 annual fee
Flat-Rate Cash Back
Bank of America® Unlimited Cash Rewards Secured Credit Card *
Unlimited 1.5X Reward Rate
Earn unlimited 1.5% cash back on all purchases
Regular APR
23.99% variable
Credit Score
Bad/Poor (0 - 649)
Why We Picked It
Earns an easy-to-manage 1.5% cash back on all your spending without tracking categories or spending caps.
Pros & Cons
- Simple rewards structure is easy to manage
- Potential to graduate to an unsecured card with good payment behavior
- Preferred Rewards members can earn even higher rewards on their spending when minimum balance requirements are met
- There are other secured cards that may earn you higher rewards.
- There's a foreign transaction fee
- Somewhat high minimum deposit of at least $300 required
Card Details
- Earn unlimited 1.5% cash back on all purchases
- Cash rewards don't expire
- Establish, strengthen or rebuild your credit
- No annual fee
Earning Points
U.S. Bank Altitude® Go Visa® Secured Card *
Up to 4X Reward Rate
Earn 4x points on dining and takeout, 2x points at grocery stores, gas stations and on streaming services and 1xRead More
Regular APR
25.99% variable
Credit Score
Bad/Poor (0 - 649)
Why We Picked It
If your biggest expenses are on dining and takeout, this is one of the best secured card offers available.
Pros & Cons
- Reports to all three major credit bureaus
- No annual fee
- Comes with a $15 annual streaming credit for eligible services
- Minimum deposit of $300 is required
- Non-bonus categories earn so-so rewards
- Other secured cards may offer rewards that better align with your spending
Card Details
- Earn 4x points on dining and takeout, 2x points at grocery stores, gas stations and on streaming services and 1x point on all other eligible purchases
- Earn a $15 streaming credit for annual streaming service purchases like Netflix and Spotify
- $0 annual fee
Low Interest Rate
First Progress Platinum Select Mastercard® Secured Credit Card
Regular APR
13.99% (Variable)
Credit Score
Bad Credit (0 - 649)
Why We Picked It
One of a small handful of secured cards where a recently discharged bankruptcy won't automatically disqualify you from getting approved.
Pros & Cons
- Low APR on purchases, especially for a secured card
- Reports monthly to all three major credit bureaus
- No credit check required to apply
- There's an annual fee
- No rewards
- Maximum credit limit is $2,000
Card Details
- Receive Your Card More Quickly with New Expedited Processing Option
- No Credit History or Minimum Credit Score Required for Approval
- Quick and Complete Online Application; No credit inquiry required!
- Includes Free Real-Time Access to Your Credit Score and Ongoing Credit Monitoring powered by Experian
- Full-Feature Platinum Mastercard® Secured Credit Card; Try our new Mobile App for Android users!
- Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
- Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
- Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
- Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
- 24/7 Online Access to Your Account
- Nationwide Program though not yet available in NY, IA, AR, or WI ** See Card Terms.
- Get a fresh start! A discharged bankruptcy still in your credit bureau file will not cause you to be declined.
Earning Back Your Deposit
Capital One Quicksilver Secured Cash Rewards Credit Card
Regular APR
26.99% (Variable)
Credit Score
Limited, Bad
Why We Picked It
For those who don't mind paying a security deposit to unlock access to rewards earning, this card may be worth considering.
Pros & Cons
- Unlimited 1.5% cash back reward on all eligible purchases
- No foreign transaction fees
- 26.99% variable APR
Card Details
- No annual or hidden fees, and you can earn unlimited 1.5% cash back. See if you're approved in seconds
- Building your credit? Using a card like this responsibly could help
- Put down a refundable $200 security deposit to get a $200 initial credit line
- You could earn back your security deposit as a statement credit when you use your card responsibly, like making payments on time
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
- Enjoy peace of mind with $0 Fraud Liability so that you won't be responsible for unauthorized charges
- Monitor your credit with CreditWise from Capital One. It's free for everyone and checking your credit does not hurt your credit score
- Earn unlimited 1.5% cash back on every purchase, everywhere. No rotating categories or limits to how much you can earn. It's that simple
The Best Secured Credit Cards
Methodology
To determine the best secured credit cards, we looked at secured credit cards offered by large banks, small to mid-sized banks and credit unions. We considered whether or not cards earned rewards, fees, deposit requirements and offered the ability to graduate to a non-secured card in our rankings.
How to Pick a Secured Credit Card
- Strive to avoid annual fees. While some secured credit cards charge an annual fee, we suggest looking at a secured card that doesn't charge any fees first, like most of the cards listed above. Any upfront fees you have to pay will eat away at your initial credit limit bank deposit and force you to start your credit building journey with less money on your credit line.
- Check minimum deposit amounts. Also check for minimum deposit amounts since some cards let you get started with a smaller collateral deposit upfront. A small upfront deposit could be important if you don't have much spare cash around.
- Make sure any card you're considering reports to the three credit bureaus. The value in obtaining a secured credit card should be building credit, which is why making sure your card reports your credit movements to the three credit bureau agencies is so important. Every card on this list reports your payments and balances to the credit bureaus, so make sure to start your search with cards we've profiled.
- Check for fees and read the fine print. Also make sure to check for fees and especially hidden fees in the fine print. Some secured credit cards charge an application fee and an annual fee, and many charge a monthly maintenance fee. The cards on this list are free of hidden fees, which is why we chose them.
Frequently Asked Questions (FAQs)
What is a secured credit card?
A secured credit card is a credit card backed by a security deposit. Before approval, you will deposit money into a bank account and won't be able to access it while you have the card. Your secured card credit limit will be equal to the amount of your deposit.
How does a secured card work?
A secured card works like any other credit card, with one big difference: Your credit limit will be determined by the amount of cash you put in a deposit account to guarantee the credit line.
Do secured credit cards help build credit?
Yes. Secured credit cards payment records will be reported to at least one of the major credit agencies. This means a good payment record will build credit but also means skipped payments or defaults will lower your credit score. The best secured credit cards will report to all three credit bureaus.
How fast will a secured card build credit?
Secured cards report monthly to the credit bureaus, but it is entirely up to the credit bureaus how they use said payment information. In general, some banks offering secured credit cards will offer a ''graduation" to an unsecured credit card after making on-time payments for a specified or unspecified number of months.
Which banks offer a secured credit card?
Many banks offer secured credit cards. Some of those banks are smaller banks, but among the big banks that offer secured credit cards are Discover, Bank of America and U.S. Bank.
What is the best secured credit card?
The best secured credit card for you may not be the best for the majority of consumers. For a combination of low cost to carry, rewards and opportunity to improve your credit, consider the Discover It® Secured.
What is the difference between secured and unsecured credit cards?
The main difference between secured credit cards and unsecured credit cards is that an unsecured credit card will not require a security deposit. Your credit line will be determined by the bank. A secured credit card requires a deposit and your credit line will be equal to said deposit.
Other Credit Cards To Be Considered
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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When Do You Get Security Deposit Back From Credit Card
Source: https://www.forbes.com/advisor/credit-cards/best/secured/
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