No annual fees and secured credit cards can be a powerful tool for credit building as these cards help you to establish an improved credit score. By making timely payments and keeping your credit utilization low, you can demonstrate responsible credit management.
Top 11 Secured Credit Cards with No Annual Fee in 2025
| Serial Number | Credit Cards | Best For |
|---|---|---|
| 1 | Citi Secured Mastercard® | Credit Builders, Newcomers |
| 2 | Wells Fargo Business Secured Credit Card | Small Business Owners |
| 3 | Capital One Secured Mastercard® | Students, Defaulters, Low-Credit Users |
| 4 | Capital One Platinum Secured Credit Card | Students, Defaulters, Low-Credit Users |
| 5 | Discover it® Secured Credit Card | Individuals Building Credit |
| 6 | US Bank Secured Visa® Card | Students, Bad Credit |
| 7 | Self Visa® Credit Card | Bad Credit, Rebuilding |
| 8 | Credit One Bank® Secured Card | Bad Credit, Rebuilding |
| 9 | First Latitude Assent Mastercard® Secured Credit Card | Bad Credit, Students |
| 10 | Capital One Quicksilver Secured Cash Rewards Credit Card | Bad Credit, Rebuilding |
| 11 | OpenSky® Plus Secured Visa® Credit Card | Bad Credit, Rebuilding |
Secured credit cards are a financial tool created for people with no or poor credit history to establish their credit score. These credit cards provide a refundable security deposit, which serves as collateral and also sets the credit limit.
Secured credit cards assist in various ways:
- Building Credit: Secured credit cards are a great means of building or enhancing your credit score. When used in a responsible manner (by making payments on time and maintaining low balances), they assist in demonstrating to lenders your ability to repay loans. The desirable patterns, over the course of time, will be reflected on your credit report and result in a better credit score, that you will need to qualify for other forms of credit in the future.
- Low-Cost Credit Card Opportunities: Secured credit cards frequently charge lower interest and fees than mainstream unsecured credit cards. Given that cardholder pays for their security as a deposit, this offers less risk for the issuing entity, such as a bank. This enables customers with a no credit report to have accessibility in obtaining approval or rebuilding for acceptable credit reports with secured credits being a wise financial option since individuals might fail the approval checks at other creditors for credit reports.
- Good for Students and New Credit Users: Secured credit cards are especially good for students and people who are new to credit. They provide an opportunity to practice the use of credit responsibly, making payments, and not building up debt. Because the credit limit is often tied to the deposit, the user is less likely to overspend what they can pay back, so it is a safe way to begin with credit.
- Ideal for New Credit Card Buyers: For someone applying for the first time, secured cards prove to be an excellent choice. Secured cards provide a testing ground where one can gain exposure to credit handling without the complications of high credit limits or rates. Once a cardholder exhibits good use of the card, he or she can move up to unsecured credit cards or higher-limit alternatives.
We Have Selected 11 Credit Cards that are Best in 2025
1. Citi Secured Mastercard®
The Citi Secured Mastercard® builds or reinstates credit by necessitating a refundable security deposit. It provides access to credit scores, purchase protection, and possible upgrade to an unsecured card.
- Issuer – Citibank
- Payment Gateway – MasterCard
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 26.74%
- Balance Transfer APR – 26.74%
- Cash Advance Fee – 5% or $10
- International Transaction Fee – 3%
- Sign-up Bonus – N/A
- Best For – Credit Builders, Newcomers
Designed for those looking to build or rebuild credit, the Citi Secured Mastercard® requires a refundable security deposit and helps establish a positive credit history. Citi issues this card to all three major credit bureaus, making it an effective tool for improving credit scores over time.
The card has no rewards program but charges a $0 annual fee. The security deposit sets the credit limit (minimum $200). No referral program exists, but responsible use can lead to an upgrade to an unsecured Citi card.
| Key Features | Reward Rate |
|---|---|
| Credit Building | No rewards, but it helps build credit responsibly |
| Allows Cardholders to Choose Payment Dates | – |
| Simplicity | – |
Pros & Cons:
Pros
- Helps build or rebuild credit.
- Free access to FICO® score.
- Potential to upgrade to an unsecured card.
Cons
- Requires a security deposit.
- No rewards program.
- High APR if carrying a balance.
Expert Advice
Use the Citi Secured Mastercard® responsibly to establish or re-establish your credit. Pay on time, maintain low utilization, and track your FICO® score to possibly upgrade to an unsecured card.
2. Wells Fargo Business Secured Credit Card
The Wells Fargo Business Secured Credit Card allows business owners to establish or enhance their credit with a refundable security deposit. It provides purchase protection and business expense management tools.
- Issuer – Wells Fargo
- Payment Gateway – Visa
- Annual Fee – $0
- Credit Score – N/A
- Intro APR – N/A
- Regular APR – Prime Rate + 11.90%
- Balance Transfer APR – N/A
- Cash Advance Fee – 4% or $10, whichever is greater; max $175
- International Transaction Fee – None
- Sign-up Bonus – N/A
- Best For – Small Business Owners
Designed for business owners looking to build or rebuild credit, this secured credit card from Wells Fargo requires a security deposit as collateral. It offers 1.5% cash back on every purchase or the option to earn 1 point per dollar spent, plus 1,000 bonus points when spending $1,000+ in a month. The card also provides free employee cards, allowing small businesses to manage expenses and establish a stronger credit profile.
The annual fee is $25 per card, making it a budget-friendly option. Credit limits are determined by the security deposit, which can range from $500 to $25,000. Applicants typically need a fair to good credit score (580+). This card doesn’t have a referral program, but it includes auto rental collision coverage, travel accident insurance, and zero liability fraud protection, making it a solid choice for business credit-building.
| Key Features | Reward Rate |
|---|---|
| Building Credit | Earn 1.5% cash back on every $1 spent |
| Cash Back | Earn 1 point per $1 spent and receive 1,000 bonus points when the company spends $1,000 or more in any monthly billing period |
Pros & Cons:
Pros
- Builds business credit.
- Flexible credit limit based on deposit.
- Purchase protection and fraud monitoring.
Cons
- Requires a security deposit.
- High APR for carried balances.
- Limited rewards or perks.
Expert Advice
Apply for a card to establish your business credit. Pay on time, maintain low utilization and avoid revolving balances in order to keep interest charges to a minimum while building your credit history.
3. Capital One Secured Mastercard®
The Capital One Secured Mastercard assists customers in building or repairing credit with a refundable security deposit. It provides access to credit-building features and the possibility of being upgraded to an unsecured card with good behavior.
- Issuer – Capital One
- Payment Gateway – MasterCard
- Annual Fee – $0
- Credit Score – Bad/Fair
- Intro APR – N/A
- Regular APR – 26.99%
- Balance Transfer APR – 26.99%
- Cash Advance Fee – 3% of the amount
- International Transaction Fee – 3%
- Sign-up Bonus – N/A
- Best For – Students, Defaulters, Low-Credit Users
The Capital One Secured Mastercard is designed for those looking to build or rebuild credit. Issued by Capital One, it requires a security deposit and offers a credit limit equal to the deposit.
With a variable APR of 29.74% and no annual fee, the card helps users build credit with responsible use. It includes tools for credit monitoring and budgeting, and there’s no foreign transaction fee.
| Key Features | Reward Rate |
|---|---|
| Building Credit | Build credit with responsible usage |
Pros & Cons:
Pros
- Helps build or rebuild credit.
- Potential to upgrade to an unsecured card.
- No foreign transaction fees.
Cons
- Requires a security deposit.
- High APR for carried balances.
- No rewards or perks.
Expert Advice
To construct your credit, pay on time, and maintain a low credit utilization ratio. Track your credit build-up and then consider moving to an unsecured card once you have a good track record.
4. Capital One Platinum Secured Credit Card
The Capital One Platinum Secured Credit Card is intended to assist in the building or rebuilding of credit. It involves a refundable security deposit and a possible upgrade to an unsecured card.
- Issuer – Capital One
- Payment Gateway – MasterCard
- Annual Fee – $0
- Credit Score – Bad/Fair
- Intro APR – N/A
- Regular APR – 26.99%
- Balance Transfer APR – 26.99%
- Cash Advance Fee – 3% of the amount
- International Transaction Fee – 3%
- Sign-up Bonus – N/A
- Best For – Students, Defaulters, Low-Credit Users
The Capital One Platinum Secured Credit Card is designed for those looking to build or rebuild credit. Issued by Capital One, it requires a security deposit and offers a credit limit equal to the deposit.
With a variable APR of 29.74% and no annual fee, the card helps users build credit with responsible use. It includes tools for credit monitoring and budgeting, and there’s no foreign transaction fee.
| Key Features | Reward Rate |
|---|---|
| Building Credit | Build credit with responsible usage |
Pros & Cons:
Pros
- Helps build or rebuild credit.
- Potential for upgrading to an unsecured card.
- No foreign transaction fees.
Cons
- Requires a security deposit.
- High APR for carried balances.
- No rewards or perks.
Expert Advice
Use the card responsibly and establish credit by paying on time and maintaining utilization low. Check your credit and plan for a promotion to an unsecured card when eligible.
5. Discover it® Secured Credit Card
The Discover it® Secured Credit Card builds or rebuilds credit with a refundable security deposit. It gives rewards for purchases and access to a free FICO® score.
- Issuer – Discover
- Payment Gateway – Discover
- Annual Fee – $0
- Credit Score – Limited/No Credit
- Intro APR – N/A
- Regular APR – Variable APR of 25.24%.
- Balance Transfer APR – N/A
- Cash Advance Fee – N/A
- International Transaction Fee – None
- Sign-up Bonus – N/A
- Best For – Individuals Building Credit
The Discover it® Secured Credit Card, issued by Discover, is ideal for individuals looking to build or rebuild credit. Its standout feature is cashback rewards—earn 2% at gas stations and restaurants (up to $1,000 per quarter) and 1% on all other purchases. The card benefits users by reporting to all three major credit bureaus, helping establish a strong credit history.
There is no annual fee, making it a cost-effective choice. The minimum security deposit is $200, which determines the credit limit. A fair credit score (580+) is required. Discover reviews accounts after seven months for possible graduation to an unsecured card. The Cashback Match feature doubles all cashback earned in the first year, making it highly rewarding for new users.
| Key Features | Reward Rate |
|---|---|
| Building Credit | Earn 2% cash back at gas stations and restaurants on up to $1,000 in combined purchases each quarter. |
| Cash Back | Earn 1% cash back on all other purchases. |
| No Annual Fee | – |
Pros & Cons:
Pros
- Earns cash back rewards (2% on gas and dining, 1% on all other purchases).
- Access to free FICO score.
- Possible upgrade to an unsecured card.
Cons
- Security deposit required.
- High APR on carried balances.
- Limited rewards in some categories.
Expert Advice
Use the card responsibly by paying on time and keeping credit utilization low. Monitor your progress with the free FICO® score access, and look to an unsecured card once your credit is improved.
6. US Bank Secured Visa® Card
The US Bank Secured Visa® Card assists individuals in establishing or reestablishing credit with a refundable security deposit. It offers credit-building features and access to valuable credit score information.
- Issuer – US Bank
- Payment Gateway – Visa
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 29.24% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 5% ($10 min)
- Sign-up Bonus – N/A
- International Transaction Fee – 3%
- Best For – Students, Bad Credit
The U.S. Bank Secured Visa® Card is designed for individuals looking to build or rebuild their credit. Issued by U.S. Bank, this card requires a refundable security deposit and reports to all three major credit bureaus. With responsible usage, users can establish a solid credit history while enjoying the benefits of a mainstream credit card. The card offers fraud protection, contactless payments, and flexible payment options to help users manage finances efficiently.
This card has no annual fee, making it a cost-effective choice for those focused on credit building. It operates on the Visa payment network, ensuring wide acceptance. Credit limits are based on the security deposit, ranging from $300 to $5,000. Applicants typically need a poor to fair credit score for approval. There are no rewards, but responsible usage can lead to an upgrade to an unsecured U.S. Bank credit card.
| Key Features | Reward Rate |
|---|---|
| Building Credit | N/A |
| No Annual Fee | – |
Pros & Cons:
Pros
- Assists in building or reestablishing credit.
- Refundable security deposit.
- Access to your FICO® score at no charge.
Cons
- Security deposit required.
- High APR for balance transfers.
- Limited rewards or benefits.
Expert Advice
Make timely payments and maintain low credit utilization to enhance your score. Utilize the card to build a good credit history over time and work toward qualifying for an unsecured card.
7. Self Visa® Credit Card
The Self Visa® Credit Card is a card for those who want to build or expand their credit. It is secured by a security deposit and reports to the big three credit bureaus, building a strong credit history.
- Issuer – Self Financial
- Payment Gateway – Visa
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 29.99% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 5% ($5 min)
- Sign-up Bonus – N/A
- International Transaction Fee – N/A
- Best For – Bad Credit, Rebuilding
The Self Visa® Credit Card is a secured card designed specifically for those with limited or damaged credit. Offered by Self Financial, it is linked to the Self Credit Builder Loan, making it unique among secured cards. Cardholders can improve their credit score by making on-time payments while benefiting from fraud protection and digital wallet compatibility. The card is an excellent choice for individuals looking to build credit without a traditional credit check.
This card has a $25 annual fee and operates on the Visa network. Unlike other secured cards, it does not require a separate security deposit—credit is based on funds saved through a Self Credit Builder Loan. Applicants need a Self account with at least $100 in savings to qualify. While it lacks cashback or rewards, its credit-building focus makes it a strong option for beginners and those recovering from past financial challenges.
| Key Features | Reward Rate |
|---|---|
| Building Credit | N/A |
| Secured Credit | – |
Pros & Cons:
Pros
- Helps establish or re-establish credit.
- Reports to all three major credit bureaus.
- Refundable security deposit.
Cons
- Requires a security deposit.
- High APR for balances you carry.
- No rewards or benefits.
Expert Advice
Use the card responsibly and pay on time, keeping your balances low. Making regular payments helps to increase your credit, and you can progress toward an unsecured card as your credit score improves.
8. Credit One Bank® Secured Card
The Credit One Bank® Secured Card builds credit with a refundable deposit. It offers credit-building features and rewards on purchases, making it an excellent option for credit rebuilding.
- Issuer – Credit One Bank
- Payment Gateway – Visa
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 28.49% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 5% ($10 min)
- Sign-up Bonus – N/A
- International Transaction Fee – 3%
- Best For – Bad Credit, Rebuilding
The Credit One Bank® Secured Card is an ideal choice for individuals rebuilding credit while earning rewards. Issued by Credit One Bank, this card provides 1% cashback on eligible purchases, a rare feature among secured cards. It is designed for those with poor or fair credit, offering an opportunity to improve credit scores through consistent, responsible use. The card includes zero fraud liability, online account management, and automatic reviews for potential credit line increases.
The card has a $39 annual fee and is backed by the Visa network for broad acceptance. The required security deposit determines the initial credit limit, typically starting at $200. There is no strict credit score requirement, but applicants must meet minimum income and identification criteria. Over time, responsible users may qualify for an upgrade to an unsecured Credit One card, making it a good long-term option for credit improvement.
| Key Features | Reward Rate |
|---|---|
| Building Credit | 1% cash back on eligible purchases |
| Rewards | – |
Pros & Cons:
Pros
- Builds or rebuilds credit.
- Access to credit score monitoring.
- Rewards on purchases.
Cons
- Requires a security deposit.
- High APR for carried balances.
- Limited rewards categories.
Expert Advice
Pay your bill on time and keep your credit utilization low to increase your credit score. Even though the rewards program is small, use the card responsibly for credit building and hope for an upgrade to unsecured.
9. First Latitude Assent Mastercard® Secured Credit Card
The First Latitude Assent Mastercard® Secured Credit Card is created to assist people with bad or no credit in building a good credit history through a refundable security deposit.
- Issuer – Synovus Bank
- Payment Gateway – MasterCard
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 29.99% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 5% ($10 min)
- Sign-up Bonus – N/A
- International Transaction Fee – 3%
- Best For – Bad Credit, Students
The First Latitude Assent Mastercard® Secured Credit Card is a solid option for individuals seeking to build or rebuild their credit. Issued by Synovus Bank, this secured card reports to all three credit bureaus, helping users establish a positive credit history. It offers fraud protection, easy approval with no credit history requirement, and contactless payment options. With flexible payment options and a low barrier to entry, it is a practical choice for credit improvement.
The card has a $25 annual fee and runs on the Mastercard network, ensuring broad acceptance worldwide. Credit limits are based on the security deposit, starting at $200 and going up to $2,000. There are no rewards or cashback programs, but the card provides a straightforward pathway to better credit standing. It is available to applicants with poor to fair credit and does not require a credit history for approval.
| Key Features | Reward Rate |
|---|---|
| Building Credit | N/A |
Pros & Cons:
Pros
- Helps establish or re-establish credit.
- Refundable security deposit.
- Reports to all major credit bureaus.
Cons
- Has a security deposit requirement.
- High APR on carried balances.
- Few rewards or benefits.
Expert Advice
Pay on time and keep an eye on your credit score. Use this card responsibly and you’ll be able to build credit and even get approved for an unsecured card in the future.
10. Capital One Quicksilver Secured Cash Rewards Credit Card
The Capital One Quicksilver Secured Cash Rewards Credit Card rewards cash back on purchases while assisting people in establishing or restoring credit with a refundable security deposit.
- Issuer – Capital One
- Payment Gateway – MasterCard
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 30.74% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 3% ($10 min)
- Sign-up Bonus – N/A
- International Transaction Fee – 3%
- Best For – Bad Credit, Rebuilding
The Capital One Quicksilver Secured Cash Rewards Credit Card is a top-tier secured card that offers 1.5% cashback on all purchases, making it one of the best-secured rewards cards. Issued by Capital One, this card is ideal for individuals looking to build credit while earning rewards on everyday spending. It comes with fraud protection, automatic credit line reviews, and no foreign transaction fees, making it a versatile choice for both domestic and international users.
This card has no annual fee and operates on the Mastercard network. The credit limit is based on the security deposit, starting at $200, with the potential for increases over time. Applicants typically need a fair credit score (580-669), but Capital One also considers other financial factors. Users who demonstrate responsible use may qualify for an upgrade to an unsecured Capital One card, offering greater financial flexibility.
| Key Features | Reward Rate |
|---|---|
| Cash Back | 1.5% cash back on all purchases |
| No Annual Fee | – |
| Building Credit | – |
Pros & Cons:
Pros
- Earns 1.5% cash back on all purchases.
- Refundable security deposit.
- Opportunity to upgrade to an unsecured card.
Cons
- Security deposit required.
- High APR for balance transfers.
- No introductory APR promotion.
Expert Advice
To get the most cash back, make timely payments, and maintain low credit utilization. Use the card for regular purchases and monitor your progress towards earning an unsecured card.
11. OpenSky® Plus Secured Visa® Credit Card
The OpenSky® Plus Secured Visa® Credit Card assists those who do not have or have a limited credit history in building credit by providing access to a secured line of credit with a refundable security deposit.
- Issuer – Capital Bank
- Payment Gateway – Visa
- Annual Fee – $0
- Credit Score – Poor-Fair
- Intro APR – N/A
- Regular APR – 25.64% (V)
- Balance Transfer APR – N/A
- Cash Advance Fee – 5% ($6 min)
- Sign-up Bonus – N/A
- International Transaction Fee – N/A
- Best For – Bad Credit, Rebuilding
The OpenSky® Plus Secured Visa® Credit Card is an excellent choice for those with no credit history or past financial challenges. Issued by Capital Bank, it does not require a credit check, making it one of the most accessible secured cards. The card helps users build credit with on-time payments, reports to all major bureaus, and offers fraud protection. Unlike many secured cards, it does not require a traditional bank account to apply.
This card has no annual fee and operates on the Visa network. The credit limit is determined by the security deposit, starting at $300. Since there is no credit check required, it is ideal for individuals looking to establish or rebuild credit. While there are no rewards, the ability to qualify without a hard inquiry makes it a strong option for those who have been denied traditional credit cards.
| Key Features | Reward Rate |
|---|---|
| Building Credit | N/A |
| No Credit Check | – |
Pros & Cons:
Pros
- Aids in establishing or re-establishing credit.
- No credit check is necessary to apply.
- Refundable security deposit.
Cons
- Charges a security deposit.
- Carryover APR is high.
- No rewards or benefits.
Expert Advice
Pay your bills on time and have low balances in order to build your credit successfully. Check on your credit advancement to advance toward an unsecured credit card when you have developed a good credit history.
No Annual Fee vs. Secured Credit Cards
No annual fee credit cards and secured credit cards both primarily differ regarding the credit user’s history as well as in terms of functionality:
No Annual Fee Credit Cards
These are usually for people with good to superb credit. These cards may have rewards and give advantages like cash back, points, or travel miles. These cards are more favorable for individuals who need to earn rewards but need to keep their credit score healthy as well.
Secured Credit Cards
Secured cards are perfect for individuals with poor or limited credit. They use a deposit, which is your credit limit, and the cards usually report your credit activity to main bureaus to improve your credit score in the long run. Cards such as the OpenSky® Secured Visa® Credit Card don’t entail a credit check, making them ideal for first-timers or individuals who wouldn’t be qualified for standard cards. While the cards may present fewer rewards, they act as a stepping stone for building up creditworthiness.
Credit Building with No Annual Fee Cards and Secured Cards
Establishing or Re-Establishing Credit: If you have a poor credit history or are in the process of re-establishing credit, a secured credit card such as the Discover it® Secured Credit Card or Capital One® Secured Mastercard is a more viable option. Secured cards do report to the credit bureaus, allowing you to build your score over time. If you want to earn rewards in addition to building credit, try a secured card with rewards, like the Discover it® Secured Credit Card. Although most secured cards don’t provide rewards, a few, like this one, allow you to earn cash back, which is a great bonus for someone beginning to establish their credit.
FAQs
Are no annual fee cards less beneficial than fee-based cards?
Not necessarily; while fee-based cards may offer more perks, no annual fee cards can still provide great rewards and benefits with fewer costs.
What are the best secured credit card options available?
Some of the top secured credit card options include the Discover it® Secured, Capital One Secured MasterCard, and the Citi® Secured MasterCard.
Can I upgrade from a secured card to a regular credit card?
Yes, many issuers allow you to upgrade from a secured card to an unsecured credit card after demonstrating responsible use over time.
How can I choose the right no annual fee credit card?
Consider factors like your spending habits, rewards program, interest rates, and any introductory offers when choosing the best no annual fee card for you.
What is a no annual fee credit card?
A no annual fee credit card allows you to use it without paying an annual fee for ownership.