If you're looking for a secured credit card to help build your credit, you're already getting on the right track. A secured credit card requires a cash deposit as collateral, which is usually the same as the credit limit you have on the card. Whether you’re starting from scratch or bouncing back from a rough patch and looking to rebuild your credit, using a secured card responsibly can be a game changer.
Once you decide that a secured credit card is a good move for your financial situation, the next step is to find the right one. This article offers a list of five cards that are good for building credit — including what they offer and some common pitfalls to avoid, as well as how to track your credit progress.
What to look for in a credit card to build credit
Not all credit-building cards are created equal. If your goal is to boost your score and build a strong credit history, these are the benefits that matter most:
Credit reporting to all three credit bureaus. You want a credit product that will regularly inform all three major credit bureaus (Experian, Equifax, and TransUnion), so that your credit-building efforts actually go on your record. This is the foundation of building credit.
Low or no annual fees. A good secured credit card shouldn’t come with high fees, and most will have zero fees.
A clear path to upgrading. Some of the best secured cards can be upgraded to their unsecured siblings over time, marking a clear path forward to strong financial health.
Secured vs. unsecured cards: What’s better for rebuilding credit?
When it comes to building credit, whether from scratch or otherwise, secured credit cards are a good option because they're largely made for this purpose. These cards use a refundable deposit instead of a credit limit, protecting both the lender and the borrower and making it easier to get approved.
While unsecured cards don’t require a deposit, they often come with more fees and higher interest rates for those without a good credit score.
How credit-building cards work
Before you dive in and apply for a secured credit card, it’s important to know how it could help you improve your credit score.
Why your credit score matters
Your credit score affects everything from loan approvals (mortgage, auto, personal, etc.) to apartment applications — and beyond. When you apply for a loan, most lenders look at your FICO score, which is based on five key factors:
Payment history (35%)
Credit utilization (30%)
Credit age (15%)
Credit mix (10%)
New credit (10%)
How secured cards help build credit
Secured credit cards are designed to build your credit history and give you a stronger credit profile over time. Here's now:
Payment activity is sent to the major credit bureaus.
On-time payments are recorded, which improve your score.
Responsible credit use is prioritized through smaller credit limits.
Sets you up for lowered credit utilization (the amount of credit you use compared to your limit) if your total available credit increases over time.
And, remember, you don’t need to carry a balance or pay interest to build credit. In fact, it’s better to pay off your balance in full each month — before interest accrues.
5 credit cards to help you build credit
Here’s a side-by-side comparison of five secured cards that consistently rank high for building credit.
Card | Deposit | Annual Fee | Reports to Bureaus | Upgrade Option |
| $200+ | $0 | Yes | Yes |
| $49+ | $0 | Yes | Yes |
| $300+ | $0 | Yes | Yes |
| $200+ | $0 | Yes | No |
| $200+ | $0 | Yes | No |
Each of these cards offers reliable credit reporting and strong customer support, plus there are a variety of deposit minimums to fit your finances. Just be sure to check the latest terms and eligibility requirements before you apply.
How to use a credit card to actually build credit
Landing a secured card is an important first step. But getting the most out of it will help you build credit fast and set you up to continue improving your credit score once you graduate to an unsecured card. Here's what to do:
Pay your bill on time. This is your number-one financial priority, every single month. Timely payments are the biggest factor in your credit score. So that monthly payment is an opportunity to improve your credit standing.
Keep your balance low. The second biggest factor in your credit score is your credit utilization. Aim to use less than 30% of your total credit limit (for example, that’s under $60 on a card with a $200 balance).
Avoid unnecessary charges. A secured card is a tool for financial growth. Try not to use it as an excuse to shop for nice-to-have items.
Check your credit score regularly. This will help you stay focused and give you the chance to course-correct if needed.
Other tools, like
EarnIn’s Credit Monitoring, let you track changes to your score in real time. Alerts about credit updates, missed payments, and more help you stay current and in control.
Common pitfalls to avoid
It’s easy to make missteps when using any kind of credit card for the first time. The more you can do to avoid the following mistakes, the faster you’ll build strong credit:
Missed payments. Even one late payment can hurt your credit score and set you back a few months.
High fee cards. Always try to avoid high annual fees, hidden charges, or extra fees — like account setup costs.
Opening multiple accounts. Each application for a secured card will cause a hard inquiry, which can lower your credit score temporarily. This is okay as long as it’s just once in a while.
Assuming the card will do the work. Using a secured card responsibly is what will boost your credit score. Simply owning one isn’t going to change your credit situation.
Alternatives to credit cards
While secured credit cards are ideal for helping you build credit, they’re not your only option. If you need
quick cash for an emergency, for example, a high-interest credit card isn’t ideal.
However, apps like
EarnIn Cash Out give you access to up to $150/day, with a maximum of $750 between paydays with no interest or mandatory fees. This can help you stay afloat while minimizing debt.
You’re not just building credit, you’re building stability
A good credit score can open doors to better rates and more financial freedom. Choosing the right secured card — and using it wisely — is a big step toward your long-term money goals.
Plus, smart tools like
EarnIn’s Credit Monitoringcan help you stay on top of your credit, minimizing the stress and maximizing the benefits — at no extra cost.
FAQs
Do secured credit cards build credit faster?
Secured cards don’t necessarily build credit faster than regular credit cards. But they are designed for credit building, and thus easier to qualify for.
Can you get denied for a secured credit card?
Yes, even with a deposit, it is still possible that some issuers will deny your application. If that happens, you can try other lenders or consider cards with no credit check at all.
How long does it take to build credit from 500 to 700?
When you’re trying to
build credit, the timeline depends on your credit history and credit habits. With on-time payments and a low credit utilisation, it is possible to see an improvement within 6 to 12 months. But how high your score rises can vary.
Should you aim to pay off your secured credit card every month?
Absolutely. Paying off your balance in full avoids interest charges and helps boost your score by showing responsible payment behaviour.
Please note, the material collected in this post is for informational purposes only and is not intended to be relied upon as or construed as advice regarding any specific circumstances. Nor is it an endorsement of any organization or services.
This Blog was sponsored by EarnIn. While the author received compensation, the information shared is grounded in independent research and intended to provide helpful and accurate guidance to readers.
EarnIn is a financial technology company, not a bank. Banking services are provided by our bank partners on certain products other than Cash Out.
Calculated on the VantageScore® 3.0 model. Your VantageScore 3.0 from Experian® indicates your credit risk level and is not used by all lenders, so don’t be surprised if your lender uses a score that’s different from your VantageScore 3.0. Learn more. A pay period is the time between your paychecks, such as weekly, biweekly, or monthly. EarnIn determines your daily and pay period limits (“Daily Max” and “Pay Period Max”) based on your income and financial risk factors as outlined in the Cash Out Maxes section of our Cash Out User Agreement. EarnIn reserves the right to adjust the Daily Max and Pay Period Max at its discretion. Your actual Daily Max will be displayed in your EarnIn account before each Cash Out. EarnIn does not charge interest on Cash Outs or mandatory fees for standard transfers, which usually take 1–2 business days. For faster transfers, you can choose the Lightning Speed option and pay a fee to receive funds within 30 minutes. Lightning Speed is not available in all states. Restrictions and terms apply; see the Lightning Speed Fee Table and Cash Out User Agreement for details and eligibility requirements. Tips are optional and do not affect the quality or availability of services. 
