Secured Credit Card with No Deposit: Guide of 15 Options (2023)

What makes secured credit cards special? They require up-front security deposits that protect the bank and act as the card’s credit limit. The problem isn’t that you have to front money. It’s that your money can’t work for you elsewhere while it sits at the bank. If you need a secured card, use this guide to pick one that you can make money using in the long run. There are three types to choose from.

First, you can get a no-deposit credit builder card from a neobank. Second, you can use credit union membership shares as a non-cash deposit. Third, choose a secured card whose rewards system generates more income than losses on the deposit from inflation.

In this article, we’ll look at the 7 best credit cards you can use to effectively “avoid” losses on a secured card deposit, as well as 8 others to help you minimize losses. We review and rank them on 20 criteria, including fees, rewards, refunds, deposit interest, necessity of hard inquiries, credit limits, required account or membership creation, and more (see full list below).

What’s the best secured credit card with no deposit?

Here are our picks for the best credit cards with no deposit.

1. CapitalOne® Quicksilver Secured
2. Discover It® Secured Credit Card
3. WebBank’s Petal 1 VISA® Credit Card
4. Digital Federal Credit Union VISA® Platinum Secured Credit Card
5. First Tech Federal Credit Union Platinum Secured Mastercard®
6. Princeton Federal Credit Union Secured VISA® Credit Card
7. Ameri Credit Union AmeriCONNECT VISA® Secured
8. CapitalOne Platinum Secured
9. CapitalOne QuicksilverOne
10. USAA® Secured VISA® Platinum Credit Card
11. BankAmericard® Secured Credit Card
12. OpenSky® Secured Credit Card
13. Citi® Secured Credit Card
14. U.S. Bank Secured Visa® Card
15. Fifth Third Bank Secured Card

CapitalOne Quicksilver Secured

Best Overall Secured Card to Get a No-Deposit Effect

Key Features

• 1.5% cash back rewards on all purchases
• 5% cash back on restaurant and rental card purchases made through CapitalOne’s platform
• Small spread between minimum and maximum credit lines limits risk of high APR

Card Metrics

1. APR (aka purchase APR). At 28.49%, CapitalOne Quicksilver has the 2nd highest variable interest on our list. This means you must avoid paying any less than the full balance due each month. Card rewards come at a price!
2. Annual Fees. There are no regular fees associated with maintaining the card. But like most cards, there is APR interest on unpaid balances.
3. Rewards. You can earn 5% cash back at hotels and rental cars when you use Capital One Travel and this card. More importantly, you’ll get 1.5% cash back on all other purchases.
4. Deposit. The deposit is a $200 minimum, but you can increase the credit limit by putting more in.
5. Credit Limit. Your credit limit is equal to your deposit, and will be either $1,000 or $3,000 based on a review of your application.
6. Hard Inquiry. Yes, there will be a hard inquiry on your credit report for the CapitalOne Quicksilver Secured card, so we only recommend applying if you have at least a FICO score of 580 (“Fair”), since this is the intended profile for this card.
7. Upgrade/Refund. This card is upgradable, and therefor a refund is available, after 6 months.
8. Deposit Pay-down of Balance. Some cards allow you to use your deposit to pay down the balance, then top it up in the next month. Other cards have an auto-pay function that automatically pays down the balance when the invoice statement appears. CapitalOne Quicksilver Secured has the autopay functionality to protect you.
9. Balance & Interest Methodology. CapitalOne Quicksilver Secured uses the average daily balance methodology. See below for details.

Brand Concerns

Customer Service: CapitalOne’s major downfall is its customer service. Customer ratings have repeatedly shown dissatisfaction with the support. This means that in order to take advantage of the favorable terms on this card you should use it very responsibly, because its unlikely you will be able to negotiate terms.

What I Like and Dislike

Like

• The rewards on every-day purchases are strong at 1.5%.
• For travelers who are comfortable going with the Capital One Travel platform, 5% cash back is hard to beat.
• Autopay functionality protects you against missed payments.

Dislike

• The APR is very high, even for a secured card.
• The deposit refund upon upgrade is a statement credit rather than cash back to you.
• Bad customer service.

Discover It® Secured Credit Card

Best for Rewards and a No-Deposit Effect

Key Features

• 2% cash back at gas stations and restaurants
• 1% cash back on all other purchases
• CashBack Match
• 10.99% intro APR on balance transfers but no grace period (at the time of writing, valid through March 10, 2023, so check the terms sheet here)

Card Metrics

1. APR (aka purchase APR). At 26.74%, Discover It’s APR is the 5th highest on our list. This means you need to be careful about missing payments. As with CapitalOne’s Quicksilver Secured, rewards are only useful with responsible and conscientious card usage.
2. Annual Fees. There is no regular fee just to maintain the card. In fact, annual fees are more and more rare today. But remember that as with all cards there is a potential APR interest charge on unpaid balances.
3. Rewards. 2% cash back at gas stations and restaurants. That said, gas stations associated with other stores (i.e Walmart or Costco gas) may not be eligible because their primary service isn’t gas, so it’s worth calling Discover if you have a primary station. Ask them if the merchant cost category for the name and address of your primary station is included.
   
   1% on all other purchases. Not bad.
   
   Cashback match. As of writing, only Discover offers this, and it’s a big deal. They will match all your cash back rewards in your first year.
4. Deposit. The minimum deposit on the Discover It secured card is $200.
5. Credit Limit. The maximum credit limit is $2,500, which is a good, low limit for those who are less familiar with cards.
6. Hard Inquiry. Be wary of the headline on Discover’s page “No Credit Score Required to Apply.” You don’t need it to apply, but the terms and conditions explicitly state that you authorize Discover to pull your credit report in order to determine your eligibility.
7. Upgrade/Refund. You are eligible for an upgrade after 7 months of responsible use. That basically means paying the minimum payment each month.
8. Deposit Pay-down of Balance. The deposit is in a blocked account and can not be used to pay down your balance, BUT you can setup autopay to ensure you don’t miss a transfer.
9. Balance & Interest Methodology. Discover It Secured Card uses the average daily balance methodology.

Brand Concerns

Customer service: like CapitalOne, Discover has had poor customer service reviews. Many consumers mention having experienced a cutthroat mentality on consumer credit approval and forgiveness, even for minor issues like one-day late payment after years of on-time payments. If used responsibly for purchases only, this card won’t obligate you to work with customer service.

What I Like and Dislike

Like

• You can choose the design from 5 options
• Rewards added to account within 2 billing periods
• Cashback match is unparalleled at competitors
• Possible to redeem rewards as a direct deposit
  • Pro Tip: other cards often limit rewards to a statement credit, so the Discover It rewards area literal cash to you.

Dislike

• Poor customer service and general comments that an automated system implemented in 2022 is the source
• Arbitration clause prevents recourse in court

WebBank Petal 1 Credit Card

Best Neobank with No Deposit and Rewards

Key Features

• Rewards up to 10% at select merchants
• No deposit required but functions like a secured card
• Purchase-only transactions and a 25 day grace period protect against accrued interest
• High APR at 33% + (variable)

Card Metrics

1. APR (aka purchase APR). Petal 1’s variable APR goes as high as 33.24%, making it the highest on our list. No wonder transactions are limited to purchases!
2. Annual Fees. There are no annual fees associated with Petal 1 (not Petal 1 Rise), but like any card interest from APR can cost you money.
3. Rewards. Up to 10%, but only on select merchant offers that are uploaded to your account automatically, making it distinctly different from the CapitalOne and Discover secured cards above.
4. Deposit. None. Petal 1 does not require a deposit.
5. Credit Limit. Up to $5,000, though customer reviews suggest Petal is conservative with it’s credit limits. You will get at least a $300 limit.
6. Hard Inquiry. By applying you agree to allow Petal collect consumer reports, which include credit reports. Many have claimed these are soft pulls.
7. Upgrade/Refund. There is no deposit with this card so refunds are not applicable. But there are several tiers of cards that you can apply to as a form of upgrade over time.
8. Deposit Pay-down of Balance. Not applicable because there is no deposit.
9. Balance & Interest Methodology. Petal uses the average daily balance methodology. See more below.

Brand Concerns

Customer service: Petal is a neobank and relies on a program to help it determine consumer creditworthiness, which leads to some recurring frustrations that the customer service center struggles to handle. The card is designed for small value transaction and will block larger ones since they represent a statistical risk of fraud, so you’ll have to pay attention to that. Customer service has a tendency to trust the software on small charges that are fraudulent as well.

What I Like and Dislike

Like

• Limit to purchase transactions and emphasis on using credit only for small value transactions align with the identity of the card–it’s designed to bring your credit up, not incentivize irresponsible draw downs on credit.
• No deposit required and weak credit accepted
• Uses alternative credit worthiness metric called CashScore to determine eligibility

Dislike

• The “path to credit increase program” can come off more promising than it really is, where many credit limit raises are very small.
• Super high APR, so be very careful to always pay your balance in full during the 25 day grace period

Note: We Do Not Recommend Neobank Chime

If you’ve done even a small amount of research on secured credit cards, then you’ve probably seen Chime. It’s a zero-APR, zero-fee card that requires you open a checking account and have your employer or other credible source directly deposit $200 per year.

Sometimes what sounds too good to be true, is. The company’s no-fee structure means its revenue relies entirely on processing fees charged to merchants, and we’ve seen the effects this low-margin game has had on investments into security and technology. The company has had huge problems with accounts being shut down incorrectly and people being blocked from accessing their money in the accounts they were required to open in order to receive a card.

It seems these problems surfaced in 2022, but until they’re solved, we don’t recommend Chime.

Digital Federal Credit Union (DCU) Visa Platinum Secured Credit Card

Best for Shares-as-Deposit Secured Card

Key Features

• Lowest APR on our list
• Highest credit limit on the list
• Non-cash, refundable membership share deposit

Card Metrics

1. APR (aka purchase APR). DCU’s APR is 15.25%, making it the 3rd lowest on our list.
2. Annual Fees. DCU’s share-pledge secured card has no annual fees. But like any card, missed payments can result in interest on amounts borrowed.
3. Rewards. This card does not propose a rewards system.
4. Deposit. The minimum share value deposit is $500, making this the card with the highest barrier to entry. At 15.25% APR, it’s expected!
5. Credit Limit. Credit limit is determined during the application process and there is no public maximum. That said, you can expect something in the $10,000 range based on feedback from consumers in forums.
6. Hard Inquiry. Yes, the DCU secured card can pull a hard inquiry on your credit reports from the bureaus.
7. Upgrade/Refund. Unfortunately, credit unions have fewer disclosure requirements and DCU does not share whether the account is available for upgrade. That said, if you remain in good standing and close the account you will get your pledged shares refunded.
8. Deposit Pay-down of Balance. No, shares cannot be used to pay down your balance during a billing period. They can, however, be taken in the case you default.
9. Balance & Interest Methodology. All of DCU’s cards use the average daily balance method. See details below.

Brand Concerns

Customer Support: like many others on the list, the pain points for customers at DCU are the poor app interface and a feeling of a lack of interest in helping customers. While banks get similar complaints, credit unions are created “by the people, for the people” since they are non-profit organizations. The contrast leads to increased customer dissatisfaction.

What I Like and Dislike

Like

• Non-cash deposit in the form of pledged membership shares mean you don’t have to front cash
• Very low APR for the card
• Tradeoff between membership fees and discounts across financial products is a good deal

Dislike

• Membership is only available to select persons, mainly those located in Massachusettes
• Poor customer service

First Tech Federal Credit Union

Best Credit Union Card Serving the Tech Community

First Technology Federal Credit Union is like DCU in that it uses a membership share pledge for deposit rather than actual funds, but it targets employees of major tech companies like Amazon, Microsoft, HP, and Google, as well as residents of Lane County, Oregon. With a 12.75% APR, this card is ideal for those in the tech industry who want to enjoy favorable terms on multiple financial products over time because even if you change companies you’ll likely still meet the membership requirements.

Key Features

• Very low APR at 12.75%
• Targets employees and employers in the tech industry
• Allows share pledge in lieu of cash deposit

Card Metrics

1. APR (aka purchase APR). At 12.75%, this card has the second lowest APR on our list.
2. Annual Fees. No annual fees.
3. Rewards. Yes, you’ll earn 1 point for every $1 you spend, and these points can be spend on travel, merchandise, and gift cards.
4. Deposit. Your deposit is your membership shares, and you agree to have a lien on those shares for that purpose.
5. Credit Limit. Your credit limit is determined based on materials in your application. Unfortunately, First Tech Credit Union does not disclose the maximum amount publicly, though some sources claim it goes as high as $25,000.
6. Hard Inquiry. Yes First Tech will perform a hard inquiry on your credit report.
7. Upgrade/Refund. The deposit, or lien on shares, is revocable when you close the account or upgrade to an unsecured card.
8. Deposit Pay-down of Balance. No, it is not possible to use shares to pay down an outstanding balance.
9. Balance & Interest Methodology. First Tech uses the average daily balance methodology. See details below.

Brand Concerns

Customer service: like any financial institution, First Tech CU is responsible for consumers money. When access is not fluid, the complaints march in rank and file. First Tech has average customer service with particular weaknesses in approving financial services on a timely basis, such as credit card approval. It also has a problem with sourcing information not available on a credit report, such as income, and has denied people due to incorrect assessments.

What I Like and Dislike

Like

• Caters to the tech community, which allows those working for these companies to become and maintain membership within the industry even after switching jobs.
• Very low APR rate at 12.75%.
• Credit limits are some of the highest on the list, barring approval.
• Share-pledge security deposit avoids fronting cash.

Dislike

• Poor customer service.
• Limited scope of membership eligibility

Princeton Federal Credit Union Secured VISA®

Best Credit Union Card for Princeton Affiliates

As the name suggests, Princeton Federal Credit Union targets employees and students at Princeton University. If you can get access to this card, you’ll benefit from a 9.90% APR, which is by far the lowest on our list. It also offers a 2.99% APR on balance transfers for the first six months (though these are not subject to a grace period and immediately begin accruing interest on the data of the transaction, even if it’s only 0.008% daily), making this a great card for those with credit balanced who are or will soon be employees at Princeton.

Key Features

• Low 2.99% APR on balance transfers is virtually unheard of
• Normal 9.90% APR is also the lowest on our list
• Minimum $500 pledge value, which is higher than the $200 norm

Card Metrics

1. APR (aka purchase APR). At 9.90%, this card has the lowest APR on our list.
2. Annual Fees. There are no annual fees associated with this Secured VISA.
3. Rewards. There is no rewards system associated with this card.
4. Deposit. Minimum $500 in pledged share value.
5. Credit Limit. The credit limit maximum is $20,000.
6. Hard Inquiry. Yes, Princeton Credit Union will pull a hard inquiry on your credit report to determine your credit worthiness and therefore credit limit.
7. Upgrade/Refund. You can get a full annulation of your pledged shares when closing the card account.
8. Deposit Pay-down of Balance. No, you cannot use pledged shares to pay down an open balance during the period.
9. Balance & Interest Methodology. Princeton CU uses the average daily balance methodology. See details below.

Brand Concerns

Customer Service: Complaints are similar to those made against other credit unions.

What I Like and Dislike

Like

• The APR rates at Princeton CU are among the best we have seen, perhaps in part due to the tier of graduates forming the member base.
• Very high max credit limit will improve your credit utilization rate

Dislike

• Poor user interface
• Fees are applicable for late payments and international transactions
• $500 minimum deposit (pledged shares)

Ameri Credit Union AmeriCONNECT Visa Secured

Best Credit Union Card for New York Residents

Ameri Credit Union serves central-north New York State, as well as a number of business partner employees across the state, including Applebee’s, which would give you access from anywhere in the US they’re located. At 15.90%, AmeriCU’s Seured VISA card has one of the lowest on our list.

Key Features

• Good terms for those living in central-north New York State
• APR of only 15.90%
• Employees of select nationwide companies can become members, such as Applebee’s

Card Metrics

1. APR (aka purchase APR). At 15.90%, AmeriCU’s Secured card has the 4th lowest rate on our list.
2. Annual Fees. There are no regular recurring fees for this card.
3. Rewards. There are no rewards for AmeriCU’s secured visa.
4. Deposit. The minimum deposit (or share pledge value) is $500.
5. Credit Limit. The maximum credit line is $5,000.
6. Hard Inquiry. Yes AmeriCU can run hard inquiries on your credit report.
7. Upgrade/Refund. You can get a refund, or removal of the share pledge, on your account when you close it.
8. Deposit Pay-down of Balance. No, you cannot use pledged shares to pay down your open balance during a billing period.
9. Balance & Interest Methodology. AmeriCU uses the average daily balance methodology. See details below.

Brand Concerns

Customer Service: AmeriCU’s customer service is criticized for being slow. It appears the union recently implemented a request funneling process that gathers requests for help and contacts you days later, leading to a considerable amount of frustration for those banking. If you can avoid the customer service, then this is a great option for you.

What I Like and Dislike

Like

• Low 15.90% APR
• Availability for consumers outside central-north New York State to qualify if they are employed by a nationwide member business

Dislike

• Poor customer service
• Minimum deposit or equivalent is $500, which is higher than the standard $200

Next is number 9 on our list, which means we’re out of the safe zone and it’s unlikely you’ll get a no-deposit effect with the cards below. They don’t earn enough interest or rewards income to combat losses brought by inflation on your deposit.

That said, there are still reasons why you might prefer these cards:

1. if you are denied from/don’t qualify for the first seven on our list,
2. if don’t feel you have the credit score and/or banking history yet to get approved for the first seven, or
3. you’re looking for something the first three don’t offer, such as a deposit below $200.

If you don’t feel like the first 7 serve your interests, keep reading.

CapitalOne Platinum Secured

Best for Minimizing Temptation with Low Credit Limit

CapitalOne’s Platinum Secured card is unique in that it provides a deposit as low as $49, which is ideal for those who want a traditional bank but can’t front the usual $200 cash. It also has a credit limit of $1,000 max, so the principle spread is small and limits the risk you rack up debt accruing at a 0.07% daily rate.

Key Features

• Extremely low refundable deposit at $49
• Possibility to deposit $99 as well
• At 24.49%, CapitalOne Platinum Secured has the 4th lowest APR interest on our list

Card Metrics

1. APR (aka purchase APR). At 24.49%, CapitalOne’s Platinum Secured card is tied for 4th lowest (matched only by another CapitalOne card).
2. Annual Fees. There are no fixed annual fees associated with this card, only APR.
3. Rewards. This card does not have a rewards system.
4. Deposit. Deposits can be as low as $49 or $99, depending on your preference.
5. Credit Limit. The maximum credit limit available for this card is $1,000.
6. Hard Inquiry. Yes, applying for this card will run a hard inquiry on your credit report.
7. Upgrade/Refund. Yes, this card is available for upgrade, and the deposit is refundable.
8. Deposit Pay-down of Balance. The deposit is held in a separate account and can not be used to pay down your balance.
9. Balance & Interest Methodology. Platinum Secured uses the average daily balance methodology. See more info below.

Brand Concerns

Customer Support: CapitalOne’s major downfall is its customer service. Customer ratings have repeatedly shown dissatisfaction with the support, often feeling neglected.

What I Like and Dislike

Like

• Low $49 entry deposit is unparalleled in the secured card market.
• Maximum credit limit at $1,000 and a mid-level APR of 24.49% make this card low risk.

Dislike

• The lack of rewards and interest on deposit means you will always lose money to inflation.
• CapitalOne’s customer service is consistently poor, so you’ll need to be careful not to miss any payments.

CapitalOne Quicksilver® One

Best Unsecured for Fair Credit

This is the one card on our list that’s not technically secured. Instead, it’s a normal credit card that targets consumers with fair credit (580 – 669). It’s APR is mediocre but not extreme at 24.49%, and there is an annual fee of $39, but you’ll get 1.5% cash back rewards on all purchases. The bottom line is you can make money on this card when you use more than $2,600 in purchases each year, or $217 per month, which would be about 22% credit utilization rate over the $1,000 limit. The “sweet spot” on this card is $217 – $300 credit per month, which will generate cash rewards in excess of the yearly fee without breaking the hallowed 30% credit utilization rate.

Key Features

• 1.5% cash back on all purchases
• $1,000 credit limit monthly
• $39 annual fee
• 24.49% APR

Card Metrics

1. APR (aka purchase APR). At 24.49%, CapitalOne’s Quicksilver card has the 7th lowest on our list (9th highest)
2. Annual Fees. The Quicksilver card has a $39 annual fee, which means you need to spend in the “sweet spot” to make enough in rewards to earn more than the loss on fees.
3. Rewards. This card earns 1.5% interest on all purchases.
4. Deposit. This is the only unsecured card on our list, which means it does not require a deposit of any kind.
5. Credit Limit. The credit limit is $1,000.
6. Hard Inquiry. Yes, CapitalOne will pull a hard inquiry on your credit report.
7. Upgrade/Refund. This is not a secured card, so there is no deposit to refund.
8. Deposit Pay-down of Balance. There is no deposit to use in paying down the open balance.
9. Balance & Interest Methodology. CapitalOne’s QuicksilverOne uses the common average daily balance. See more info below.

Brand Concerns

Customer Service: CapitalOne’s major downfall is its customer service. Customer ratings have repeatedly shown dissatisfaction with the support, with consumers often feeling neglected and stuck waiting for a review period.

What I Like and Dislike

Like

• No security deposit required for a card provided to those with fair credit
• 24.49% is low for a card targeting those with fair credit
• A fairly easy “sweet spot” will allow you to build credit and earn money via cash back–as long as you pay your balance in full on purchases each month

Dislike

• Credit limit is low at $1,000, but this is expected for an unsecured card targeting fair credit
• Poor customer service
• Annual fee

USAA Secured Platinum Credit Card

Best for Interest on Deposit

Here is a card with a slightly higher APR at 26.65% but the highest interest on deposit available, which is still only 0.03%. If you need interest income for any reason, then this is the best secured card for you on our list.

Key Features

• Interest income of 0.03%
• Mid-tier APR at 26.65%
• Fairly high credit limit at $5,000

Card Metrics

1. APR (aka purchase APR). At 26.65%, this card has the 6th highest APR on our list.
2. Annual Fees. There are no regular fees associated with the USAA Secured Platinum Credit Card.
3. Rewards. There are no rewards associated with the USAA Secured Card.
4. Deposit. At $250,t he minimum deposit is slightly higher than the average ($200).
5. Credit Limit. This card has a max credit limit of $5,000.
6. Hard Inquiry. Yes, USAA will pull a hard inquiry on your credit report as part of the approval process.
7. Upgrade/Refund. Yes, you can get a refund when you pay off any balance and close the account.
8. Deposit Pay-down of Balance. No, you cannot use the deposit to pay down an outstanding balance.
9. Balance & Interest Methodology. USAA’s Secured Card uses the average daily balance methodology. See more info below.

Brand Concerns

Customer service: USAA is primarily an insurance, so credit lending is not its specialty. That said, overall customer reviews suggest USAA customer service is subpar, and the quality has deteriorated in recent years.

What I Like and Dislike

Like

• 0.03% interest on deposit, while small, is the highest on our list and among the best in the market
• The $5,000 credit limit is reasonably high

Dislike

• Poor customer service
• Virtually no way to make money on this card due to the absence of rewards
• Unless you need interest income for a personal finance reason, there are better options

BankAmericard Secured Credit Card

Best for Bank of America Customers

If you’re already banking with Bank of America and want to keep your financial products with one brand, then this may be a good card for you. At 25.74% normal APR, BankAmericard has an average interest rate, and the deposit is only refundable at the discretion of BoA. That said, there are no rewards and no interest on deposit. It does, however, have a max credit limit of $5,000.

Key Features

• Max credit limit $5,000

Card Metrics

1. APR (aka purchase APR). At 25.74%, BoA’s Americard has the 8th highest on our list of 15.
2. Annual Fees. There are no annual fees associated with this card.
3. Rewards. There are no rewards associated with this card.
4. Deposit. The minimum deposit for this card is $200.
5. Credit Limit. The credit limit for the BankAmericard Secured Credit Card is $5,000.
6. Hard Inquiry. Yes, Bank of America will pull a hard inquiry on your credit report.
7. Upgrade/Refund. The refund is at the discretion of Bank of America.
8. Deposit Pay-down of Balance. No, it is not possible to pay down an open balance with the deposit during a biling period.
9. Balance & Interest Methodology. Bank Americard uses the average daily balance. See more info below.

Brand Concerns

Customer Service: Bank of America has some of the worst overall customer service ratings available today, unfortunately.

What I Like and Dislike

Like

• Good for integrating a secured card when you already have a accounts with Bank of America

Dislike

• Very poor customer service

OpenSky Secured Credit Card

Best for Planned Increases in Credit Limit

OpenSky’s secured card has a unique pitch: with good standing, you an increase your credit limit by $50 every three months. While most cards reevaluate your position over time, OpenSky’s quarterly approach provides a clear, predictable path, which is useful for many consumers. At 19.64%, the APR is better than the average. That said, it has no rewards and an annual fee of $35, which means you will lose money on your deposit due to inflation.

Key Features

• 3-month planned credit limit increase
• Good 19.64% APR

Card Metrics

1. APR (aka purchase APR). Both purchase and cash advance APRs are 19.64%, which is the 5th lowest on our list.
2. Annual Fees. Yes, OpenSky’s secured card has an annual fee of $35.
3. Rewards. There is no rewards program associated with this card.
4. Deposit. The deposit minimum is $200.
5. Credit Limit. The starting credit limit is $3,000 but must be backed by the security deposit.
6. Hard Inquiry. Yes, the OpenSky secured card will run a hard inquiry on your credit report.
7. Upgrade/Refund. You can get a refund if you pay down all obligations and close the account.
8. Deposit Pay-down of Balance. No, you cannot use the deposit to pay down an open balance in a billing cycle.
9. Balance & Interest Methodology. OpenSky uses the average daily balance method. See more info below.

Brand Concerns

Customer Service: unfortunately, like many others on our list, OpenSky has unreasonably poor customer service reviews. Notably, consumers have complained about slow response times on important issues and delays regarding the delivery of credit cards.

What I Like and Dislike

Like

• The consistent increase in credit limit on a quarterly basis is a real asset for those who struggle to set fixed goals.

Dislike

• Poor customer service.
• $35 annual fee and the absence of rewards makes this card nearly impossible to make money on.

Citi Secured Mastercard

Best for Customer Service + Buy Now Pay Later Side Plan

For those looking for a buy now pay later plan, Citi proposes arguably the best credit card combination on the market as of the date of this article. It has a fixed-payment account called the Citi Flex Plan that allows you to use your credit line as a form of fixed-payment loan, which can often be cheaper than using a credit card for purchases above $500. However, that’s about all it offers. With no rewards, it’s unlikely you’ll make money on this card, which eliminates the possibility of getting a “no-deposit” effect.

Key Features

• At 26.24%, the APR is average.
• $200 – $2,500 credit spread.

Card Metrics

1. APR (aka purchase APR). Citi’s 26.24% is the 7th highest on our list. In all honesty, that’s not saying much given that the average is 22.73%.
2. Annual Fees. Citi’s secured card does not have an annual fee.
3. Rewards. There are no rewards associated with this card.
4. Deposit. The minimum deposit is $200, aligned to the norm for secured cards.
5. Credit Limit. The credit limit is $2,500, which puts this card at a reasonable norm.
6. Hard Inquiry. Yes, Citi will pull a hard inquiry on your credit report.
7. Upgrade/Refund. Yes, your dossier will go under review after 18 months of good standing with the bank. This may allow you to get a refund or upgrade, though it is at the discretion of the bank.
8. Deposit Pay-down of Balance. No, you cannot use your deposit to pay down your balance during a billing period.
9. Balance & Interest Methodology. Citi uses the average daily balance methodology. See more info below.

Brand Concerns

Customer service: the HUGE upside to Citi’s secured card is that the customer service is exceptionally good. It’s among the only cards with strong customer service ratings.

What I Like and Dislike

Like

• Good customer service.
• Citi Flex Plan allows you to convert high-APR purchases into fixed loan payments, like a car loan.

Dislike

• No rewards system.
• Upgrade possibility usually limited to 18 months.

U.S. Bank Secured Visa Card

Best for Interest on Deposit + Buy Now Pay Later Side Plan

This is the only card on our list that provides both interest on deposit and a BNPL side plan, so if you need interest income and interest expense in the same financial product, this may be the best card for you. However, it offers no rewards system and minimal interest on deposit, so it’s unlikely you will make money.

Key Features

• Interest on deposit of 0.03%
• $5,000 credit limit

Card Metrics

1. APR (aka purchase APR). At 28.24% on purchases, U.S. Bank’s secured card has the 3rd highest APR on our list.
2. Annual Fees. There are no regular annual payments.
3. Rewards. There is no rewards system.
4. Deposit. The minimum deposit is $300.
5. Credit Limit. The maximum credit limit is $5,000.
6. Hard Inquiry. Yes, U.S. Bank will pull a hard inquiry on this card.
7. Upgrade/Refund. Yes, you can upgrade to an unsecured card, but the bank does not disclose the timeline.
8. Deposit Pay-down of Balance. No, you cannot use the secured funds to pay down any open balance.
9. Balance & Interest Methodology. U.S. Bank uses the average daily balance methodology. See more info below.

Brand Concerns

Customer Service: unfortunately, U.S. Bank’s customer service is often noted as one of the worst, with many mistakes in accounts leading to unnecessary late fees, unresponsive and unhelpful customer service representatives, and more.

What I Like and Dislike

Like

• One of few products to offer interest income and expense in one financial product.

Dislike

• Very poor customer service.

Fifth Third Bank Fifth Third Secured Card

Best for Fifth Third Customers

The last card on our list comes in with an APR of 27.74% on purchases and a 0.03% interest on deposit. It has an annual fee of $24 and no rewards, which means it’s virtually impossible to earn money on this card. The only real reason to take Fifth Third Bank’s secured card is if you’re already a client and want to keep your products centralized to one place.

Key Features

• 0.03% interest on deposit.

Card Metrics

1. APR (aka purchase APR). At 27.74%, Fifth Third Bank’s APR is the 4th highest on our list.
2. Annual Fees. The annual fee for this card is $24.
3. Rewards. There are no rewards associated with the Fifth Third Bank Secured Card
4. Deposit. The minimum deposit on this card is $300.
5. Credit Limit. Your max credit limit, pending application approval, is $5,000.
6. Hard Inquiry. Yes, Fifth Third Bank will pull a hard inquiry on your credit report as part of the approval process.
7. Upgrade/Refund. Yes, upgrades and refunds are possible. However, upgrades are at the discretion of Fifth Third Bank.
8. Deposit Pay-down of Balance. No, you cannot use deposit funds to pay down your balance during a billing period.
9. Balance & Interest Methodology. Fifth Third Bank uses the average daily balance methodology for all of its commercial credit cards. See more info below.

Brand Concerns

Customer Service: Fifth Third seems to have a good amount of problems regarding its management of mortgages purchased from other institutions. They also struggle to streamline communication with customers digitally. That said, few forums shows complaints about the management of credit card accounts.

What I Like and Dislike

Like

• If you’re already a customer at Fifth Third, then it may be easiest to take the secured card with them in order to centralize your accounts.

Dislike

• Poor customer service.
• No real way to stay positive on a deposit to Fifth Third.
• High APR.

How to Choose a Secured Card

Here’s how to choose the best secured card in 3 steps.

#1 Know the Terms

We recommend cards based on their components listed below and recommend you understand them to make an informed decision.

• APR (aka purchase APR). Stands for annual percent rate and establishes the interest you pay on your outstanding credit card balance. This rate has historically been about 14% (see chart above). When you divide it by 12, you get the rate that credit cards charge on your monthly outstanding balance (divide by 365 for daily). Because APR is charged on the outstanding balance, the value of the interest compounds. For example, imagine you have a 14% APR and don’t pay down $100 over two months. The monthly rate is 1.25% (15%/12). In the first month, your balance is 101.25 (100 + 100*0.25%). In the second month, it’s 102.52. You need to pay that total amount to avoid blemishes on your credit score. Methods for balance and interest calculations vary, but a common one is “average daily balance.” See the last bullet below for more details.
  
  IMPORTANT: APR rates evolve with the prime rate, so always verify you’re comfortable with the active rate. That said, the graph above shows that on average the rates are steady, with a 1.43% standard deviation over 28 years.
• Intro APR. Some cards offer a lower APR rate on amounts you transfer from other cards or for a limited duration at the start of your contract. They work in the exact same way as normal APR, but they’re lower in order to incentivize consumers to transfer their funds. In most cases, however, these transfers are not subject to the grace period like purchases are, so they will accrue interest on a compound basis from the date of transfer.
• Cash Advance APR. Cash advance APRs are typically higher than purchase APR. They apply to cash that you take out against your credit limit.
• Penalty APR. When you make a minimum payment late, you may be applied a penalty APR, which is a high interest rate that you pay on future balances, your current balance, or both.
• Annual Fees. Annual fees are a fixed amount you pay the card issuer simply to have the card. You should avoid these at all costs because they guarantee a loss for you.
• Balance Transfer Fees. When you transfer a balance from one card to another, the second card may charge a relative rate (typically 3-5%) or a flat rate on the balance.
• Late Payment Fees. One-off fees associated with payments disbursed to the credit card company after the due date. Avoid these with autopay.
• Credit limit. The maximum amount you can borrow at any time. This includes interest and annual fees.
• Balance. Defined as the total amount of money you owe to the card company including interest and fees in most cases. Some cardholder agreements define it differently, such as with an “average daily balance.” See the last bullet point for more details.
• Minimum deposit. The minimum deposit is what separates secured credit cards from unsecured ones. Unsecured cards require this deposit, and it simultaneously represents your credit limit.
• Rewards rate. Many credit cards provide rewards, often in the form of cash back on select purchases. It requires some investigation, but this is the best of 2 ways to MAKE money from your secured credit card.
• Deposit Interest. Some card issuer banks (not many, only 3 on our list) provide interest returns on the deposit you use to open the secured credit card. This is income for you once you upgrade or get your refund, though it is usually negligible.
• Account/membership creation. Some companies require you to create an account with them, or become a member of their association. This is common for credit unions. Sometimes there is a cost associated with membership, but you will likely have an ownership as part of the membership. The favorable terms (i.e low interest) associated with membership are effectively your dividends as an owner.
• Credit score range. Credit range simply refers to the ideal credit scores for a given card, ranging from 300 to 850.
• Hard Inquiry for approval. Some card issuers run these “hard inquiries” on your credit report to obtain information required in the approval process, such as your FICO score. While the secured card provides an entry point for those with bad credit, some issuers still want to know you don’t have a 300 credit score, for example. This applies in the approval process for secured cards as well, where many applicants have little or no credit.
• Upgradability/Refund. Upgrading simply means switching your secured credit card to unsecured (aka normal). This is when you usually receive a refund of the deposit–the bedrock of getting a no-deposit effect.
• Grace Period. The period of time in which interest is not calculated on certain segments–usually purchases but NOT cash advances or transfers. You should ALWAYS pay down your balance in the grace period. This avoids you paying any interest on purchases. And be careful–if you miss one month, those excluded purchases that usually don’t accrue interest will start accruing in the next period.
• Minimum Payment. The minimum amount you must pay on your open balance monthly. Sometimes it’s a flat fee, but in most cases it’s a small percent of the existing period balance plus new interest and fees. Paying the minimum payment and continuing to make purchases is not a good idea. This is the textbook credit card nightmare scenario.
• Balance Calculation. In many cases issuers use the “average daily balance” calculation, which we’ll look at below.
• Interest Calculation. Interest calculations typically depend on the balance calculation, but will involve taking the APR, dividing it by 360 or 365 (depending on the bank), and multiplying by all non-new purchases on a daily basis, including compounding effects. We’ll look at this in detail at the end of the article.

#2 Understand Balance & Interest Calculations

Interest is a complicated topic. Even the most experienced financial professionals struggle to keep various interest methodologies straight. From compounding and accruing interest to loan schedules and revolving credit facilities, the arithmetic can be cumbersome.

Thankfully, virtually all credit cards use the same methodology: average daily balance (including new transactions).

In a sentence, this method splits your card activities into three “segments” called Purchases, Balance Transfers, and Cash Advances (each of which treats new transactions and interest rates differently), and it applies the daily periodic interest rate (APR/365) to the sum of each day’s beginning balance (+), new applicable transactions (+), and payments (-), then takes the average ending balance of all days in the month and applies the periodic APR rate AGAIN.

Here’s how each segment treats new transactions and interest:

Segment	New Transactions	Interest Rate
Purchase	Ignored in daily balance unless previous month balance wasn’t paid in full ✅	“Normal” APR ✅
Balance Transfer	Included on the date of the transaction ❌	Typically “Normal” APR, sometimes promotional APR, other times higher APR ⚠️
Cash Advance	Included on the date of the transaction ❌	Higher APR ❌

So what does this look like? Let’s take a look at four possible scenarios in tabular form to understand.

When you’re timely on your payments and pay the full amount each month, you benefit from the famous “grace period” and new purchases do not get added to your daily balance. BUT, you still have to pay them back by the end of the grace period, or they will be added to the next month.

Download the Excel template here to do your own calculations.

When a balance from the previous month goes unpaid, that balance continued to accrue interest. More importantly, new purchases are added to the balance, rapidly increasing the outstanding debt.

Balance transfers almost always begin accruing interest on the date of the transaction and do not have a grace period.

Cash advances almost always begin accruing interest on the date of the transaction and are not subject to a grace period. Moreover, the APR on this segment is typically higher.

Now you know how interest is calculated. Make sure to always read a credit card’s terms, conditions, and disclosures before using the card for any reason.

#3 Understand Secured Credit Card Earnings & Losses

The basic formula for the value of a classic secured credit card is:

[Income from Rewards] + [CashMatch Rewards Income] + [Income from Interest on Deposit] – [Cost of APR Interest] – [Cost of Fees] – [Cost of Inflation on Deposit].

When income is higher than costs, you make money. We use this calculation to rank the relevant cards on our list, assuming average inflation rates, average credit utilization rates, and average APY. While all cases are unique, this calculation serves to standardize the overwhelming number of terms consumers must face when choosing a card.

It’s rare for a secured card to make money because few of them have rewards, and inflation on your deposit (a cost, typically about 2%) eats away all interest on deposit (an income, typically <1%). That said, we identified 4 cards that either use alternative credit worthiness techniques and don’t require a deposit, or have high enough rewards in order to get you that “no deposit” effect.

The most important takeaway here is to always pay your balance in full on purchases, and avoid cash advances and transfers except in extreme situations with careful consideration and calculation. Otherwise, the effects of compound interest will drive up your APR Interest Cost and create a net loss position.

Summary & Conclusion

We’ve reviewed and ranked the top secured credit cards you can use to get a no-deposit effect on the card based on simple arithmetic. Here’s a summary of our cards and who they’re best for:

Card	Best For
CapitalOne® Quicksilver Secured	Best Overall Secured Card to Get a No-Deposit Effect
Discover It® Secured Credit Card	Best for Rewards and a No-Deposit Effect
WebBank’s Petal 1 VISA® Credit Card	Best Neobank with No Deposit and Rewards
Digital Federal Credit Union VISA® Platinum Secured Credit Card	Best for Shares-as-Deposit Secured Card
First Tech Federal Credit Union Platinum Secured Mastercard®	Best Credit Union Card Serving the Tech Community
Princeton Federal Credit Union Secured VISA® Credit Card	Best Credit Union Card for Princeton Affiliates
Ameri Credit Union AmeriCONNECT VISA® Secured	Best Credit Union Card for New York Residents
CapitalOne Platinum Secured	Best for Minimizing Temptation with Low Credit Limit
CapitalOne QuicksilverOne	Best Unsecured for Fair Credit
USAA® Secured VISA® Platinum Credit Card	Best for Interest on Deposit
BankAmericard® Secured Credit Card	Best for Bank of America Customers
OpenSky® Secured Credit Card	Best for Planned Increases in Credit Limit
Citi® Secured Credit Card	Best for Customer Service + Buy Now Pay Later Side Plan
U.S. Bank Secured Visa® Card	Best for Interest on Deposit + Buy Now Pay Later Side Plan
Fifth Third Bank Secured Card	Best for Fifth Third Customers

That said, you should always read a card’s T&C before making purchases, using the knowledge you’ve gained above to make the best choice for you.

Recap: 3 Types of Secured Cards with No Deposit

No-Deposit Credit Builder Cards

Perhaps the easiest way to get the credit-building benefits of a secured card without the deposit is to go with a Neobank like Petal. These cards often use alternate credit worthiness scores, such as Petal’s CashScore, which takes into account banking history and income. They typically have higher APRs and block high-value single transaction, though.

Credit Union Secured Cards with Membership as Deposit

Credit Unions are non-profit financial institutions chartered by state or federal governments that require the purchase of shares in exchange for membership. This income allows them to offer favorable lending terms across financial products.

Many of them propose secured cards, where the deposit is simply a pledge of your membership shares, meaning you don’t have to make any cash deposit to open the card. The downside is that credit unions have geographic eligibility requirements. DCU, for example, serves Massachusettes.

Secured Cards with Rewards and Interest

Banks want your business and know you don’t like the deposit, so they provide peace of mind in the form of deposit interest and rewards (see explanation of card value above–opens in new tab). These tools drive customer retention, meaning banks can convince you to upgrade to an unsecured (aka normal) card once you demonstrate credit worthiness. They’re also an opportunity for you to make money–something Neobanks and credit unions cannot usually provide.

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Note: while we do our best to provide a comprehensive review of offerings in the market, the nature of some card terms are variable. For example, APR rates change with the prime rate. Moreover, card companies may change their terms and conditions over time, such as interest calculation methodology. This page will guide you to choose the best secured card for you, and you can take what you learn in order to make good decision when applying. Always read the cardholder agreement to understand the risks and rewards at play when you apply.