How to Build Credit with Secured Credit Cards
Secured credit cards offer the opportunity to build credit without having a high score by using security deposits.
Building a solid credit history is essential for accessing the best financing conditions in America.
This applies to obtaining a traditional credit card, financing a car, renting an apartment, or even starting a business.

However, for those starting from scratch or trying to rebuild their score, secured credit cards can be a valuable tool.
What Are Secured Credit Cards?
Secured credit cards are a special type of card that requires a security deposit for approval.
Typically, the deposit matches the card’s credit limit and serves as a guarantee to the issuer that the cardholder can pay the bill.
This is precisely what makes these cards more accessible for individuals with no credit history or a damaged credit history, as they reduce the financial institution’s risk.
How Do Secured Cards Help Build Credit?
One of the main advantages of this type of credit card is that payments are reported to the major U.S. credit bureaus.
This includes Equifax, Experian, and TransUnion, the three largest in the country. Therefore, by using the card responsibly and making payments on time, the cardholder begins to build a positive credit history.
This is one of the key factors for improving a credit score in the medium and long term.
Choosing the Right Secured Credit Card
Not all secured credit cards are the same or offer the same benefits. Some important factors to consider include:
- Deposit Amount: Some institutions allow deposits starting at $200, while others require higher amounts. It’s important to research the card’s terms carefully.
- Fees: Check if there are annual fees or other charges associated with the card. Most secured cards do not have annual fees, but it’s essential to review the terms.
- Credit Bureau Reporting: Ensure that the issuer reports your usage to all three major credit bureaus.
- Upgrade Possibility: Some cards allow a transition to an unsecured card after a positive payment history.
Popular Secured Credit Cards in the U.S.
Some well-known secured credit cards include:
- Discover it® Secured Credit Card: No annual fee, offers cashback, and allows an upgrade to an unsecured card after a good payment history.
- Capital One Platinum Secured Credit Card: Requires a low deposit and may increase the credit limit with responsible use.
- Citi® Secured Mastercard®: A good option for those looking to build credit with a traditional issuer.
- Bank of America® Customized Cash Rewards Secured Credit Card: Offers cashback and the possibility of upgrading to an unsecured version.
The U.S. market offers many other secured credit card options. It’s best to conduct thorough research to find the most suitable one.
How to Use a Secured Card to Improve Credit Score
- Always Pay on Time: Payment history is the most critical factor in your credit score, accounting for about 30% of it. Late payments can significantly impact your score, so make timely payments.
- Keep Utilization Low: Try to use less than 30% of your credit limit to maintain a healthy debt-to-credit ratio. A much higher usage can raise concerns for creditors.
- Avoid Applying for Multiple Credits at Once: Too many credit applications within a short period can negatively affect your score. It’s better to choose just one or a few cards.
- Monitor Your Credit: Use free services to track your credit score and report any errors in your credit information. Just be cautious about requesting too many credit checks, as they can lower your score.
When to Transition to an Unsecured Credit Card?
After a period of responsible use, usually between six months and a year, many banks allow the transition to a traditional credit card.
Some institutions return the security deposit to the customer at this stage, while others do not require a formal transition.
In many cases, switching to a different card or financial institution might be a better option, so researching all conditions before applying for a new credit card is essential.
Conclusion
Secured credit cards are an excellent option for those looking to build or rebuild credit in the United States.
When used wisely, they can open doors to better financial opportunities, including unsecured cards, loans, and lower interest rates.
The key is to use them strategically, always prioritizing on-time payments and maintaining good financial control.