The Best Secured Cards with No Annual Fee

By Christina Majaski. Last updated 19 June 2018. 0 comments

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As one of the only options available for those with poor or no credit, secured credit cards have long carried a bad reputation for charging extra fees and high APRs, in addition to the security deposit required by card members just to carry the card. In many instances, these fees end up harming credit more than helping and the card user ends up with more debt and an even worse credit rating.

Over the years, secured credit cards have bounced back quite a bit by offering more reasonable opportunities for building or rebuilding credit. Not only do many secured options now offer extra incentives such as rewards programs and cardmember perks, there are cards that actually include manageable APRs and relatively low fees. Though secured cards without annual fees are rare, we've listed the best ones here. (See also: Best Secured Cards for Rebuilding Credit)

Discover it® Secured

If you are in the process of rebuilding your credit, you should consider the Discover it® Secured. This card awards 2% cash back at restaurants and gas stations on up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. Discover will also match the cash back you earn at the end of your first year as a new cardmember. You must make a security deposit of at least $200, which will be the credit limit on the card. Your account will be reviewed at 8 months, and you may qualify to get your security deposit back while you continue using the card. This card also reports to the three major credit bureaus so you can build or rebuild your credit. There is an introductory APR of 10.99% on balance transfers for six months from the date of transfer. The variable APR after the introductory period and for purchases is 24.49%. There is no annual fee or foreign transaction fee for this card. See rates and fees.

Click here to learn more and apply for the Discover it® Secured today!

Capital One® Secured Mastercard®

Capital One removed the annual fee for their Secured Mastercard®, making this one of the best all around secured cards available. The card comes with all the benefits of their unsecured cards, such as extended warranty, auto rental insurance, 24/7 roadside assistance, price protection, and more. It has a 24.99% variable APR. As with all Capital One cards, there is no foreign transaction fee.

Click here to learn more and apply for the Capital One® Secured Mastercard® today!

Citi® Secured Mastercard®

The Citi® Secured Mastercard® from our partner Citi allows those with no credit history to begin to build one, without having to pay an annual fee for it. The card requires a $200 to $2,500 security deposit. Your card limit will be in the amount of your security deposit. The APR is 24.24%* variable. 

Click here to learn more and apply for the Citi® Secured Mastercard® today!

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