Why was my secured card application denied?

Your application for a secured credit card might be denied if you have serious problems with your credit history, such as bankruptcy. Fortunately, some credit cards don’t automatically disqualify you for having a bankruptcy on your credit report. Learn more: What to do when your credit card application is denied

Can I increase my credit limit on a secured credit card?

You might be able to increase your credit limit after your initial security deposit by making an additional security deposit (though there may be a cap). Some secured cards will automatically review your account after a set time period and consider an increase in your credit limit with responsible card use. However, not all cards offer credit limit increases. Check with the issuer to see if an increase is possible and how.

Best Secured Credit Cards to Build Credit in February 2025

Compare Bankrate's top secured credit cards

Card Name	Best For	Annual fee	Bankrate Review Score
The secured Self Visa® Credit Card¹	Building a credit mix	*$25	3.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Self's secure site
Capital One Platinum Secured Credit Card	Building credit	$0	4.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
Chime Credit Builder Secured Visa® Credit Card	Flexible deposit	None	4.2 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Chime's secure site
Discover it® Secured Credit Card	Welcome offer	$0	4.5 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Discover's secure site See Rates & Fees
Capital One Quicksilver Secured Cash Rewards Credit Card	Starter rewards card	$0	4.0 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital One's secure site See Rates & Fees
First Progress Platinum Prestige Mastercard® Secured Credit Card	Low interest	$49	2.6 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on First Progress's secure site
OpenSky® Secured Visa® Credit Card	Card for after bankruptcy	$35	3.1 / 5 Our writers, editors and industry experts score credit cards based on a variety of factors including card features, bonus offers and independent research. Credit card issuers have no say or influence on how we rate cards. (Read card review) Apply now on Capital Bank's secure site

Researching the best secured credit cards

50+

cards rated

500+

data points analyzed

250+

fees tracked

40+

perks evaluated

We thoroughly rate and research the best secured cards based on key criteria to help you make confident decisions when choosing your next credit card. Learn more about our methodology below.

What is a secured credit card?

A secured credit card is similar to an unsecured one, except it has a refundable security deposit as collateral. When you open your account, you pay this deposit and typically it acts as the card’s credit limit. The issuer may refund your deposit and upgrade the card to an unsecured version after you show responsible credit use.

Want to learn more? Read our full guide on how secured credit cards work.

Secured vs. unsecured credit cards

Credit builders often start with a secured credit card and then graduate to an unsecured credit card with better rewards rates and lower fees as their scores improve.

While the biggest cost difference between secured and unsecured cards is the security deposit, there are also other fees and features to keep in mind.

Factors	Secured card	Unsecured for bad credit
Minimum credit score	No credit history or bad credit (below 580 FICO)	Bad credit (below 580 FICO)
Typical minimum security deposit	$50–$300	$0
Builds credit?	Yes	Yes
Annual fee	Sometimes (typically around $49, but many no-annual-fee options available)	Commonly (can be $99 or more, and no-annual-fee options are harder to find)
Rewards	Rarely	Sometimes

LEARN MORE What’s the difference between secured and unsecured credit cards?

Pros and cons of secured credit cards

Pros

Access to credit: A secured card is handy when a merchant doesn’t accept cash, like for a hotel reservation or a rental car.
Lighter application requirements: People with limited or low credit scores typically find application requirements for secured cards more forgiving and accessible. Some applications don't even require a credit check.
Accountability: Because you can typically spend only up to the amount of your security deposit, a secured card can help you control your spending.
Refundable deposits: You can often get your deposit back after demonstrating responsible card use.

Cons

Extra fees: Some secured cards may charge fees for opening the account, which can reduce the amount of available credit you have left to use.
High APRs: Many secured cards charge higher-than-average APRs, which can be expensive if you don’t pay your credit card bill on time and in full.
Limited features: Secured cards tend to focus on credit-building and typically lack features like welcome offers, intro APR offers or other perks that add long-term value.

Expert advice on secured credit cards

Secured credit cards can help you build or rebuild credit when used responsibly. Working on your credit will get you closer to qualifying for cards with better features and benefits. Once you're ready to apply, here’s what to consider when choosing a secured credit card:

Credit-building tools: When choosing a secured card, check the perks it offers that can help you improve your credit. For instance, the issuer should report card usage to at least one of the bureaus so that your good habits — on-time payments, paying in full, low utilization and more — don’t go unnoticed. Credit reports of good payment behavior to Equifax, Experian or TransUnion are essential for building or repairing credit.
Security deposit requirements: Your security deposit typically acts as your starting credit limit. Note the minimum and maximum security deposit requirements that the card has. If the card's minimum deposit is too high, then it may not be the right choice for you. On the other hand, if the maximum deposit is too low for you to effectively use the credit limit responsibly, then you should look at other options.
Interest rates: Many secured credit cards for bad credit charge higher-than-average interest rates — typically 25 percent or more. If you can avoid carrying a balance by paying your card in full every billing cycle, you don't have to worry about interest. However, if you tend to carry a balance, then look for cards that have reasonable APRs. Interest charges add to your balance and can eat into your credit limit.
Rewards: Some secured credit cards even offer rewards. For example, the Discover it® Secured Credit Card offers cash back in a couple of key spending categories. While you shouldn't apply for a card for bad credit just for the rewards, it could be a cherry on top while you're building credit.

Tips for rebuilding credit with a secured credit card

While you’ll want to upgrade to an unsecured card as soon as possible, you can still use your time with your secured card to your advantage.

Take this time to practice good habits

Use your secured card as a tool to help build your credit with relative ease. Keep your credit utilization ratio in check and stay on top of your credit card bills. You should pay at least the minimum due every month, but paying off the entire balance is best to avoid interest charges. It takes time to increase your credit score, so be patient as you learn to use credit cards.
Submit a large security deposit

Putting down more money could result in a higher credit limit, making it easier to keep your credit utilization ratio in check. If you can only put down the required minimum, prioritize keeping your utilization low so you don’t hurt your score.
Upgrade to an unsecured card when possible

Once you’ve worked your way up to fair credit and beyond, you can think about upgrading to an unsecured card that might offer better rewards programs and lower fees. If your secured card has maintenance or inactivity fees, it may be a good idea to close your card. Otherwise, there’s no harm in keeping it open for the occasional small purchase to add to the length of your credit history.
Get your security deposit back

If you decide to close your secured card, make sure to get your security deposit back. The issuer may take 30 to 90 days to refund your deposit in the form of a statement credit or check.

What are some alternatives to a secured card?

Applying for a secured card is a simple and effective way to build up less-than-ideal credit, but it may not be your only option. If you struggle to qualify for a secured credit card, a few alternatives include:

Becoming an authorized user
Getting a cosigner
Unsecured cards for bad credit
Alternative scoring models
Credit-builder loans

Bankrate’s take: As you use a secured card to build credit, track your progress on your credit report. You can request a free copy of your credit report from each of the three credit bureaus every year.

Secured credit card news & views

Americans are facing increased financial pressures, but the average credit score hasn’t moved much in response. According to a 2024 FICO study, the national average credit score currently stands at 717. But good credit scores might not necessarily mean that Americans aren’t struggling to keep up. Nearly half of credit cardholders carry a balance from month to month, according to Bankrate’s 2025 Credit Card Debt Survey. And 53 percent of cardholders who carry a credit card balance have been doing so for at least a year.

If you’re using a secured credit card to improve your credit score, it’s important to pay off your balance each month, since secured cards often have higher interest rates that make it harder to pay down debt. We also explored what Redditors from r/CreditCards are saying about using secured cards. They shed light on the importance of trusting the process when building credit with a secured card and how to determine your security deposit.

One tried-and-true piece of advice: Be patient with your first card. You won’t see your credit-building efforts reflected in your score for at least six months, so don’t apply to more cards until your score is ready.

“I wouldn't rush to get more cards right now. Focus on building your credit and becoming eligible for non-secured cards. Then, you can go crazy with applications,” one user said in response to another asking if they should get a second secured card.*

It’s true — one secured card can help you build your credit with responsible use. However, adding another secured card to the mix only locks up more of your cash and provides you with a second card with a low credit limit, which doesn’t do much for your credit score. You’d be better off making an additional security deposit toward your first secured card instead of getting a second to increase your purchasing power.

That raises the question of how much should you deposit on a secured credit card. The answer depends on your financial situation and how you plan to use the card.

“I think the amount you put down for the security deposit depends on your place in life at the moment and how much you trust your own financial responsibility,” one Redditor said in a separate post regarding security deposits and higher limits.* “You may not need a super high limit and choose to put gas/minor purchases on it to rebuild credit, or use a low limit as a deterrent to overspending. Or you may use the card as a more daily driver option and require a higher limit to make your monthly purchases.”

Your security deposit is also likely the reason why it’s easier to get approved for a secured credit card. We analyzed our proprietary data to compare the approval rates for secured cards and unsecured cards that Bankrate readers applied for on our site in 2024.

According to our data, Bankrate users with bad credit and thin credit are 46 percent more likely to get approved for a secured credit card than they are to get approved for an unsecured card for bad credit.

While secured credit cards usually require a security deposit to back your credit limit, this extra requirement makes approval far more likely — and it’s good to remember that the deposit is refundable. As long as you can afford to put down at least $200 for the security deposit, you may have better chances of getting approved for a secured card than an unsecured card.

*The quotes and citations included on this page have been verified by our editorial team and are accurate as of the posting date. Outlinked content may contain views and opinions that do not reflect the views and opinions of Bankrate.

Try it out: Bankrate’s CardMatch™ feature is an easy way to see if you prequalify for select cards within your credit range.

Frequently asked questions about secured credit cards

Your application for a secured credit card might be denied if you have serious problems with your credit history, such as bankruptcy. Fortunately, some credit cards don’t automatically disqualify you for having a bankruptcy on your credit report.

Learn more: What to do when your credit card application is denied
That depends on your finances and the minimum and maximum amounts allowed. If you don’t plan to use the card much and can pay your balance in full each month, just putting down the minimum security deposit could work.
You might be able to increase your credit limit after your initial security deposit by making an additional security deposit (though there may be a cap). Some secured cards will automatically review your account after a set time period and consider an increase in your credit limit with responsible card use. However, not all cards offer credit limit increases. Check with the issuer to see if an increase is possible and how.

How we assess the best secured cards

When evaluating the best secured credit cards, we consider a mix of factors, including how cards score in our proprietary card rating system and whether cards offer features that make it easy to build credit history while keeping costs low.

We analyzed over 50 of the most popular cards designed for people with a fair credit score and rated each based on its cost, APR, credit-building features and more to determine whether it belonged in this month’s roundup.

Here are some of the key factors that we considered:

Build credit, minimize fees

Secured cards run the gamut, from basic no-annual-fee cards to cash back cards to cards with sky-high fees and APRs. Our rating methodology for these cards focuses on two key factors: How easy a card makes it to build credit and the costs you’ll face along the way.

Cost 45.00%
Ease of building credit 25.00%
APR 10.00%
Perks 10.00%
Customer experience 10.00%

A credit-building card’s cost has a large influence on its overall score and our decision to include it in our best cards list. This is because cards in this category tend to be much pricier than traditional credit cards designed for people with a good or better credit score.

We compare a card’s total cost, including any annual fees, account activation fees, monthly fees and more against the total cost of other cards in the credit-building category and assign each card a score based on its affordability. We also factor rewards-earning potential into our assessment of a credit-building card’s total cost, subtracting expected earnings from the sum of its fees.

To get a sense of a credit-building card’s rewards-earning potential, we estimate its average annual rewards rate and average annual earnings based on the most popular spending categories (as covered in the latest Bureau of Labor Statistics consumer spending report).

However, we use a slightly lower spending assumption ($300 per month or $3,600 per year) to estimate average earnings, assuming credit-builders will start out with a lower credit limit, will want to keep credit utilization low and will focus primarily on small purchases they can easily pay off.

While low-cost credit-building cards will always be at a major advantage in our scoring system and will likely earn a higher spot on our best cards list, no-annual-fee credit-building cards can be hard to come by, especially if you’re looking for an unsecured card. With this in mind, we may include unsecured cards with high fees in our list if they offer other benefits for credit-builders, like a high starting credit limit or useful perks.

A card’s APR is also a major factor in its credit-building score. Each card’s average APR is compared against the average APR of other cards in the category, and the cards with lower-than-average APRs receive a higher rating.

Given the many costs students face — from textbooks to laptops — the presence of an introductory APR on purchases or balance transfers also plays a role in a student card’s score and its inclusion on our list.

Though high APRs are hard to avoid when you’re just starting out or working on your score, credit-builders and students should strive for as low an APR as possible since they’re likely to either be new to managing cards or trying to establish better financial habits and avoid falling into debt.
Along with a credit-building card’s cost, we consider how easy the card makes it to build credit. To asses this, we evaluate its credit limit potential and minimum deposit requirement.

Unsecured cards with a high starting credit limit and secured cards that let you put down a large deposit and get a matching high credit limit will score the highest according to our “Ease of building credit” rubric and are more likely to appear on our list.

This is because a high credit limit can make it much easier to keep your credit utilization low, a primary credit-building factor that makes up 30 percent of your FICO credit score.

Secured cards have a slight advantage in this category since the maximum credit limit on a secured card tends to be much higher than the typical starting credit limit on an unsecured card. However, unsecured cards have the upper hand in another key aspect of building credit: accessibility.

Cards that carry no or a low deposit requirement can also receive a high score according to our “Ease of building credit” rubric since these cards offer a lower barrier to entry than secured cards that require you to put up hundreds of dollars in an upfront deposit.

Indeed, some users may prefer to pay a non-refundable $50 annual fee while they work on their credit score than tie up hundreds in a refundable security deposit.
We evaluate a student or credit-building card’s benefits based on how useful they are for someone looking to build a positive credit history or save money on everyday spending.

We consider the inclusion of a rewards program, student-centric perks, access to your credit score or a credit monitoring service of prime importance, along with the ability to prequalify for the card with only a soft credit pull and a clear path to increase your credit limit or graduate to an unsecured or full-fledged rewards card.

Cards that include these benefits are likely to score higher according to our credit-building card and student card scoring rubrics and are more likely to earn a place in our list.

More information on secured credit cards

Person using credit card for contactless payment at checkout

How long should you keep a secured card?

A person with blue painted nails is pulling out a credit card from their wallet

7 credit card tips for beginners

Can You Get A Secured Credit Card With No Bank Account?

Person using a laptop to work on their desk

How to get a credit card with no credit history

Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.

For Capital One products listed on this page, some of the benefits may be provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.

We use primary sources to support our work. Bankrate’s authors, reporters and editors are subject-matter experts who thoroughly fact-check editorial content to ensure the information you’re reading is accurate, timely and relevant.
1. “Building credit from scratch.” Consumer Finance Protection Bureau. Accessed on Feb. 6 2025.
2. “Learn about your credit report and how to get a copy.” USAGov. Accessed on Accessed on Feb. 6, 2025.
3. "Average U.S. FICO® Score stays at 717 even as consumers are faced with economic uncertainty." FICO. Accessed on Feb. 6, 2025.

India Davis Editor, Credit Cards

India Davis is an editor specializing in credit cards and updates. She believes in putting the reader first and carrying out a brand’s voice to its fullest potential. She has…

Steve Dashiell Editor, Credit cards

Steven Dashiell is an editor for Bankrate and CreditCards.com with expertise in rewards credit cards, financial literacy, and helping consumers build and maintain their credit.

* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.

Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.

Best secured credit cards for February 2025

+ Show Summary

The secured Self Visa® Credit Card¹

Capital One Platinum Secured Credit Card

Chime Credit Builder Secured Visa® Credit Card

Discover it® Secured Credit Card

Capital One Quicksilver Secured Cash Rewards Credit Card

First Progress Platinum Prestige Mastercard® Secured Credit Card

OpenSky® Secured Visa® Credit Card

Compare Bankrate's top secured credit cards

Researching the best secured credit cards