Bank of America® Customized Cash Rewards Secured Credit Card

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Best card for rebuilding credit

Key takeaways

3%

Earn 3% cash back in the category of your choice: gas, online shopping, dining, travel, drug stores or home improvement and furnishings

2%

Earn 2% cash back at grocery stores and wholesale clubs; Earn unlimited 1% cash back on all other purchases

3%

You’ll earn 3% and 2% cash back on the first $2,500 in combined choice category/grocery store/wholesale club purchases each quarter, then earn 1%

5/5

Best card for rebuilding credit

Capital One Quicksilver Secured Cash Rewards Credit Card

Best card for flat-rate cash back

Key takeaways

5%

Earn unlimited 5% cash back on hotels and rental cars booked through Capital One Travel, where you’ll get Capital One’s best prices on thousands of trip options. Terms apply.

1.5%

Earn unlimited 1.5% cash back on every purchase, every day

5/5

Best card for flat-rate cash back

Discover it® Secured Credit Card

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Best for first-year bonus

Key takeaways

2%

Earn 2% cash back at Gas Stations and Restaurants on up to $1,000 in combined purchases each quarter.

1%

Plus, earn unlimited 1% cash back on all other purchases – automatically

4.4/5

Best for first-year bonus

Best store card for rebuilding credit

Key takeaways

2%

Eligible Prime members earn 2% back at Amazon.com, Amazon Fresh and more

3.9/5

Best store card for rebuilding credit

First Progress Platinum Prestige Mastercard® Secured Credit Card

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Best for a below-average APR

Key takeaways

1%

1% Cash Back Rewards on payments

4.6/5

Best for a below-average APR

How can credit cards help rebuild your credit score?

Responsible credit card use is a great way to rebuild your credit. Your credit score will improve over time if you consistently make payments on time and avoid carrying over a high balance. You should aim to keep your card balances below 30% of your credit limit, but below 10% is even better for building and maintaining a good credit score.

If you aren’t confident in your ability to make on-time payments each month, opening a credit card may not be a good idea. Other options that can help include credit-builder loans.

Secured vs. unsecured credit cards for credit rebuilding

Many card issuers offer secured credit cards as an option for borrowers with bad credit or no credit. Secured cards require a deposit that will typically help set your initial credit limit. While interest rates and fees may be higher on secured credit cards than other borrowing options, they can be a great tool for establishing or rebuilding credit.

With responsible use over time, many issuers will refund the deposit on your secured card and upgrade you to an unsecured credit card.

Some issuers also offer unsecured credit cards designed for building credit, though these may be more targeted at consumers who are new to credit, instead of those whose scores have seen some damage. These cards don’t require a deposit. In some cases, they may consider alternative information like your banking history, income and spending history to determine your creditworthiness.

What to consider when choosing a credit card for credit rebuilding

• Secured vs. unsecured. Unsecured cards may offer better rates and more robust rewards earning potential, but are more difficult to qualify for. A secured card requires a deposit but can help you steadily rebuild your score. If you select a secured card, take note of the minimum deposit required to open an account — this amount can vary.
• APRs and annual fees. Always take note of how much it costs you to use a credit card. While you should avoid carrying a credit card balance if you can, a high APR can make it hard to make meaningful progress on any balance. This is especially true if you’re only making minimum payments. Compare rates across multiple cards before deciding which one you want, and try to avoid cards that charge annual fees unless the card’s benefits offset that cost.
• Cash back opportunities. Many of the best cards for rebuilding credit offer cash back rewards. In addition to providing the occasional windfall, cash back rewards are a simple and flexible way to get something back for your spending and responsible card use.

Methodology

Our money and data analytics teams evaluated over two dozen secured credit cards. We then narrowed down our list of the best cards for rebuilding credit by giving them a star rating out of five based on the following factors and our editorial judgment:

Pricing and fees (55%)

Cards with no or low annual fees, foreign transaction fees and balance transfer fees and cards with competitive variable APRs received a boost compared to cards with higher fees and rates.

Rewards value (15%)

We used spending data from the Bureau of Labor Statistics and estimates of rewards values from The Points Guy to determine which cards dole out the best rewards value.

Sign-up bonus value (15%)

Most secured cards don’t offer sign-up bonuses. The only card on our list that offers anything resembling a sign-up bonus is the Discover it® Secured Credit Card
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The information for the Discover it® Secured Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.


. Still, we checked for this feature to boost any cards with sign-up bonuses.

Benefits (15%)

Cards that offer benefits such as cell phone protection, purchase protection, extended warranty and a 0% introductory APR on purchases and balance transfers received a boost.

What didn’t make the cut

• First Tech Credit Union Platinum Secured Mastercard
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  The information for the First Tech Credit Union Platinum Secured Mastercard has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.
  
  
  : While this card is a great option with a reasonable 14.25% to 18% variable APR, you must join the credit union in order to apply, and information about the security deposit isn’t readily available on the issuer’s website.
• First Progress Platinum Select Mastercard® Secured Credit Card
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  The information for the First Progress Platinum Select Mastercard® Secured Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.
  
  
  : The First Progress Platinum Select offers many of the same features of the First Progress Platinum Prestige Mastercard® Secured Credit Card
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  The information for the First Progress Platinum Prestige Mastercard® Secured Credit Card has been collected independently by CNN Underscored. The card details on this page have not been reviewed or provided by the card issuer.
  
  
  , which made our list. At $39, its annual fee is $10 less per year, but it carries a higher APR at 19.24% (Variable) compared to the 15.24% (Variable) offered by the Platinum Prestige.

Frequently asked questions (FAQs)