4 Secured Credit Cards That Offer Rewards

[Update: Some offers mentioned below have expired and/or are no longer available on our site. You can view the current offers from our partners in our credit card marketplace. DISCLOSURE: Cards from our partners are mentioned below.]

Consumers with poor or nonexistent credit should consider secured credit cards for their spending and credit-building needs. Secured cards have looser credit restrictions and require a security deposit up front to open, but otherwise they operate like traditional credit cards.

With secured cards, your poor or limited credit history won’t necessarily keep you from earning rewards. While most secured credit cards are no-frills affairs, some do offer spending incentives.

Here are four secured credit cards with real rewards.

1. SKYPASS Visa Secured Card

Rewards: One mile for every dollar spent on eligible purchases.

Sign-Up Bonus: 5,000 SKYPASS bonus miles upon your first purchase.

Annual Fee: $50

APR:Variable 17.24% on purchases and balance transfers.

Why We Picked It: Cardholders can earn miles with select airlines.

Benefits: Every purchase earns one SKYPASS mile per dollar. You’ll get 5,000 bonus miles right out of the gate and 1,000 bonus miles every year upon renewal. Points can be redeemed for flights and upgrades with SkyTeam partners—including Delta, Korean Air, and Air France—or for other travel expenses.

Drawbacks: There’s a $50 annual fee, and miles are limited to twenty participating airlines.

2. Best Western Rewards Secured Mastercard

Rewards: Thirteen points for every dollar spent on Best Western stays; two points for every dollar spent on other purchases.

Sign-Up Bonus: 5,000 bonus points upon your first purchase.

Annual Fee: $29

APR:Variable 21.99% on purchases and balance transfers.

Why We Picked It: Frequent Best Western guests can earn points for future reservations and more.

Benefits: Cardholders earn thirteen points per dollar on Best Western stays, with ten points through the Best Western Rewards program and three points for using your card. All other purchases earn double points. Points can be redeemed for Best Western stays, gift cards, merchandise, and more.

Drawbacks: If you aren’t a loyal Best Western guest, this card isn’t for you. 

3. Navy Federal nRewards Secured Credit Card

Rewards: One point per dollar spent on all purchases.

Sign-Up Bonus: None

Annual Fee: $0

APR:Variable 9.99% to 18% on purchases and balance transfers.

Why We Picked It: Navy Federal members can earn points for goodies.

Benefits: All purchases earn one point. Points can be redeemed for gift cards or merchandise.

Drawbacks: You must be a Navy Federal member to access this card. Points expire after four years.

4. AeroMexico Visa Secured Card

Rewards: Two miles for every dollar spent on gas and groceries; one mile for every dollar spent on everything else.

Sign-Up Bonus: 5,000 bonus miles and a companion flight certificate with your first purchase.

Annual Fee: $0 the first year, then $25.

APR: Variable 23.99% on purchases and balance transfers.

Why We Picked It: Frequent AeroMexico flyers can enjoy the miles earned with this card.

Benefits: Gas and grocery purchases earn double miles, and all other purchase earn single miles. Your first purchase earns 5,000 bonus miles and a companion certificate. Plus, you’ll get an additional $99 companion certificate each year you renew.

Drawbacks: If you don’t fly AeroMexico, you won’t see much value in this card.

Choosing a Secured Credit Card with Rewards

Because secured credit cards are primarily intended for consumers with poor or nonexistent credit, building credit should be your primary goal. Rewards should be a secondary concern.

Pay close attention to the fees and APR associated with any cards you’re considering. Annual fees and interest can eat into the overall value of earned rewards.

You’ll also want to evaluate security deposit policies. Many secured credit cards can be opened with as little as $200, and the credit limit will equal your deposit. Some cards may increase your credit limit without requiring an additional deposit after a period of timely payments and responsible card use.

When it comes to rewards, choose a card that rewards your specific spending habits and provides redemption options you’ll actually use.

What Credit Is Required to Get a Secured Credit Card?

Secured credit cards are generally available to consumers with poor or nonexistent credit history, but that doesn’t mean approval is guaranteed. To increase your chances of approval, you should check your credit score before you apply to make sure you meet the requirements. You can check your credit report for free at Credit.com.

Image: istock

At publishing time, the Discover it Secured Credit Card is offered through Credit.com product pages, and Credit.com is compensated if our users apply for and ultimately sign up for any of these cards. However, this relationship does not result in any preferential editorial treatment. This content is not provided by the card issuer(s). Any opinions expressed are those of Credit.com alone, and have not been reviewed, approved or otherwise endorsed by the issuer(s).

Note: It’s important to remember that interest rates, fees and terms for credit cards, loans and other financial products frequently change. As a result, rates, fees and terms for credit cards, loans and other financial products cited in these articles may have changed since the date of publication. Please be sure to verify current rates, fees and terms with credit card issuers, banks or other financial institutions directly.

Source: credit.com

Credit Cards for Bad Credit: Best of 2019

Having bad credit can feel incredibly limiting, but there
are many credit cards for bad credit that can help you rebuild your credit
moving forward. Many of these cards offer low variable APRs, no or low annual
fees and other credit-building tools. These cards, combined with smart spending
habits, can open up new possibilities and grant you the financial freedom to
meet your goals.

Note: There’s no one
“best” card for everyone. All cards have their perks and quirks. So, you simply
need to choose the card that’s “best” for your needs and spending habits. To
help you figure out which one is the right card for you, here are a few of our
favorite credit cards for bad credit.

/*Chat Animation*/ #animation-wrapper max-width: 450px; margin: 0 auto; margin-bottom: 50px; width: auto; #animation-wrapper .box background-color: rgb(44, 74, 94);color: #fff;text-align: center;font-family: “ProximaNova-Regular”, Arial, sans-serif;height: 153px;padding-top: 10px; .content .box p margin: 0px 0px; .box .btn-primary color: #fff;background-color: #ff7f00;margin: 10px 0px; .chat ul margin: 0px;padding: 0px;list-style: none; .message-left .message-time display: block;font-size: 12px;text-align: left;padding-left: 30px;padding-top: 4px;color: #ccc;font-family: Courier; .message-right .message-time display: block;font-size: 12px;text-align: right;padding-right: 20px;padding-top: 4px;color: #ccc;font-family: Courier; .message-left text-align: left;margin-bottom: 16px; .message-left .message-text max-width: 80%;display: inline-block;background: #e5e6ea;padding: 13px;font-size: 14px;color: #000;border-radius: 30px;font-weight: 100;line-height: 1.5em; .message-right text-align: right;margin-bottom: 16px; .message-right .message-text line-height: 1.5em;display: inline-block;background: #5ca6fa;padding: 13px;font-size: 14px;color: #fff;border-radius: 30px;line-height: 1.5em;font-weight: 100;text-align: left; .chat background: #fff; margin: 0; border-radius: 0; .chat-container height: 450px;padding: 5px 15px;overflow: hidden; .spinme-right display: inline-block;padding: 15px 20px;font-size: 14px;border-radius: 30px;line-height: 1.25em;font-weight: 100;opacity: 0.2; .spinme-left display: inline-block;padding: 15px 20px;font-size: 14px;color: #ccc;border-radius: 30px;line-height: 1.25em;font-weight: 100;opacity: 0.2; .spinner margin: 0;width: 30px;text-align: center; .spinner > div width: 10px;height: 10px;border-radius: 100%;display: inline-block;-webkit-animation: sk-bouncedelay 1.4s infinite ease-in-out both;animation: sk-bouncedelay 1.4s infinite ease-in-out both;background: rgba(0,0,0,1); .spinner .bounce1 -webkit-animation-delay: -0.32s;animation-delay: -0.32s; .spinner .bounce2 -webkit-animation-delay: -0.16s;animation-delay: -0.16s;@-webkit-keyframes sk-bouncedelay 0%,80%,100%-webkit-transform: scale(0)40%-webkit-transform: scale(1.0)@keyframes sk-bouncedelay0%,80%,100%-webkit-transform: scale(0);transform: scale(0);40%-webkit-transform: scale(1.0);transform: scale(1.0); /*Text Ad*/ .ad-container padding: 15px 30px;background-color: #FFFFFF;max-width: 690px;box-shadow: 1px 1px 4px #888888;margin: 20px auto; .ad padding: 10px 6px;max-width: 630px; .ad-title font-size: 20px;color: #0077BB;line-height: 22px;margin-bottom: 6px;letter-spacing: -0.32px; .ad-link line-height: 18px;padding-left: 26px;position: relative; .ad-link::before content: ‘Ad’;color: #006621;font-size: 10px;width: 21px;line-height: 12px;padding: 2px 0;text-align: center;border: 1px solid #006621;border-radius: 4px;box-sizing: border-box;display: inline-block;position: absolute;left: 0; .ad-link a color: #006621;text-decoration: none;font-size: 14px;line-height: 14px; .ad-copy color: #000000;font-size: 14px;line-height: 18px;letter-spacing: -0.34px;margin-top: 6px;display: inline-block; .ad .breaker font-size: 0px; #ad-4 font-family: Arial, sans-serif;background-color: #FFFFFF; #ad-4 .ad-titlecolor: #2130AB; #animation-wrapper .cta-lexcolor: #FFFFFF; width: 80%; #animation-wrapper .lex-logodisplay: inline-block; @media (max-width: 500px) .ad padding: 20px 18px;max-width: 630px;

Best Credit Cards for Bad Credit 2020

Here are our picks for the best credit cards for bad credit:

First Progress Platinum Prestige Mastercard Secured Credit Card: A low APR balances out this card’s $49 annual fee.

OpenSky Secured Visa: There’s no credit check necessary to access the low rates of this card built to help you rebuild your credit.

First Progress Platinum Prestige Mastercard® Secured Credit Card

Card Details
Intro Apr:

Ongoing Apr:
9.99% Variable APR for Purchases

Balance Transfer:

Annual Fee:

Credit Needed:
Poor-No Credit

Snapshot of Card Features
  • Receive Your Card More Quickly with New Expedited Processing Option
  • No Credit History or Minimum Credit Score Required for Approval
  • Full-Feature Platinum Mastercard® Secured Credit Card
  • Good for Car Rental, Hotels; Anywhere Credit Cards Are Accepted!
  • Monthly Reporting to all 3 Major Credit Bureaus to Establish Credit History
  • Credit Line Secured by Your Fully-Refundable Deposit of $200 — $2,000 Submitted with Application
  • Just Pay Off Your Balance and Receive Your Deposit Back at Any Time
  • Apply in just a few moments with no negative impact to your credit score; no credit inquiry will be recorded in your credit bureau file
  • Nationwide Program though not yet available in NY, IA, AR, or WI * See Card Terms.

Card Details +

Benefits: The First Progress Platinum Prestige Mastercard also offers a super-low 9.99% Variable APR for Purchases. The card is secured by a fully refundable deposit of $200 to $2,000.

Disadvantages: The main disadvantage to this card is its $49 annual fee. Unfortunately, the card is not yet available nationwide, either. If you live in New York, Iowa, Arkansas or Wisconsin, you’ll need to find another credit card for now.  

OpenSky® Secured Visa® Credit Card

Card Details
Intro Apr:

Ongoing Apr:
17.39% (variable)

Balance Transfer:

Annual Fee:

Credit Needed:
Fair-Poor-Bad-No Credit

Snapshot of Card Features
  • No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
  • The refundable* deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
  • Build credit quickly. OpenSky reports to all 3 major credit bureaus.
  • 99% of our customers who started without a credit score earned a credit score record with the credit bureaus in as little as 6 months.
  • We have a Facebook community of people just like you; there is a forum for shared experiences, and insights from others on our Facebook Fan page. (Search “OpenSky Card” in Facebook.)
  • OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
  • *View our Cardholder Agreement located at the bottom of the application page for details of the card

Card Details +

Benefits: If you’re trying to rebuild your credit, the OpenSky Secured Visa is a great choice. You determine your credit line—submit a fully refundable security deposit between $200 and $3,000—and increase your credit line up to $5,000. There’s no credit check necessary, so you don’t have to worry about another dip to your credit score.

Disadvantages: There is a $35 annual fee, and the ongoing APR is a little high—it’s currently 17.39% (variable).

How
to Choose the Best Credit Card for Bad Credit

Choosing a credit
card for bad credit depends on your financial circumstances. One of
the most important reasons to get a card for poor credit is to rebuild your
credit, so you’ll want to choose a card that can help you do that.

Pay attention to the fees and APR associated with any card you’re
considering. While a security deposit for a secured card may seem like a steep
up-front expense, it might be worth it if you can avoid higher fees later and improve
your credit health overall.

Choose a card that rewards your spending habits and provides incentives for the types of purchases you tend to make. Before you apply, you should know your credit score so you can have a better idea of what cards are right for you. You can check your credit report for free with Credit.com.

Editorial disclosure: Reviews are as determined solely by Credit.com staff. Opinions expressed here are solely those of the reviewers and aren’t reviewed or approved by any advertiser. Information presented is accurate as of the date of the review, including information on card rates, rewards and fees. Check the issuer’s website for the most current information on each card listed.

Note: It’s important to remember that
interest rates, fees, and terms for credit cards, loans, and other financial
products frequently change. As a result, rates, fees, and terms for credit
cards, loans, and other financial products cited in these articles may have
changed since the date of publication. Please be sure to verify current rates,
fees, and terms with credit card issuers, banks, or other financial
institutions directly.

Source: credit.com