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Best Credit Cards for Beginners: Secured and Starter Cards Compared

Four widely available secured and starter cards from major issuers, compared on how they help you build credit — and what to watch for.

By Fountain Finances Editorial Team Updated 4 options compared

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Rates and fees on deposit accounts, cards and loans change frequently. We show a number only after our editors have confirmed it on the provider’s own disclosure page, together with the date it was checked. Where no figure is shown, follow the link for the provider’s current terms.

At a glance

Summary of best credit cards for beginners: secured and starter cards compared
ProviderProductTypeWorth a look forInsurance
Bank of America Customized Cash Rewards Secured Credit Card Secured credit card with rewards People building or rebuilding credit who want to earn cash back —
Capital One Platinum Secured Credit Card Secured credit card People with limited or damaged credit who want a simple secured card —
Capital One Quicksilver Secured Cash Rewards Credit Card Secured credit card with rewards Credit builders who want flat-rate cash back on a secured card —
Chase Freedom Rise Starter credit card (unsecured) People new to credit, especially existing Chase banking customers —

The options in detail

Customized Cash Rewards Secured Credit Card

Bank of America · Secured credit card with rewards

Worth a look for: People building or rebuilding credit who want to earn cash back

APR
Variable — check today’s rate
Fees
See provider’s fee schedule
Minimums
Refundable security deposit required

Key features

  • Requires a refundable security deposit
  • Earns cash back rewards
  • Account may be reviewed periodically for return of the deposit, per Bank of America’s terms

Pros

  • Rewards on a secured card
  • Large issuer with branch network

Cons

  • Deposit ties up cash
  • Rewards categories and caps require attention

Things to consider

Confirm the minimum and maximum deposit and how and when the issuer reviews accounts for graduation.

Listed #1 alphabetically, not ranked. Confirm current rates, fees and eligibility on the provider’s site before applying.

See provider at Bank of America (opens in a new tab) ↗ On bankofamerica.com

Platinum Secured Credit Card

Capital One · Secured credit card

Worth a look for: People with limited or damaged credit who want a simple secured card

APR
Variable — check today’s rate
Fees
See provider’s fee schedule
Minimums
Refundable security deposit required

Key features

  • Refundable security deposit; depending on credit, the deposit may be less than the credit line
  • Automatic reviews for a higher credit line, per Capital One’s terms
  • Reports to the major credit bureaus

Pros

  • Straightforward card focused on building credit
  • Path to a higher line with responsible use

Cons

  • No rewards
  • High ongoing APR if you carry a balance

Things to consider

Use it lightly and pay the statement balance in full each month to build credit without paying interest.

Listed #2 alphabetically, not ranked. Confirm current rates, fees and eligibility on the provider’s site before applying.

See provider at Capital One (opens in a new tab) ↗ On capitalone.com

Quicksilver Secured Cash Rewards Credit Card

Capital One · Secured credit card with rewards

Worth a look for: Credit builders who want flat-rate cash back on a secured card

APR
Variable — check today’s rate
Fees
See provider’s fee schedule
Minimums
Refundable security deposit required

Key features

  • Refundable security deposit
  • Flat-rate cash back on purchases
  • Automatic credit line reviews, per Capital One’s terms

Pros

  • Rewards without tracking categories
  • Designed for building credit

Cons

  • Deposit required
  • High APR if you carry a balance

Things to consider

Check the card’s current fees and deposit requirements in the issuer’s pricing information before applying.

Listed #3 alphabetically, not ranked. Confirm current rates, fees and eligibility on the provider’s site before applying.

See provider at Capital One (opens in a new tab) ↗ On capitalone.com

Freedom Rise

Chase · Starter credit card (unsecured)

Worth a look for: People new to credit, especially existing Chase banking customers

APR
Variable — check today’s rate
Fees
See provider’s fee schedule
Minimums
No deposit; approval based on application

Key features

  • Unsecured card designed for limited credit history
  • Earns cash back rewards
  • Chase notes that having a Chase checking account may improve approval odds

Pros

  • No security deposit
  • Rewards from the start

Cons

  • Approval not guaranteed for applicants with no history
  • Low starting credit limits are common

Things to consider

If you are not approved, a secured card may be the better first step.

Listed #4 alphabetically, not ranked. Confirm current rates, fees and eligibility on the provider’s site before applying.

See provider at Chase (opens in a new tab) ↗ On creditcards.chase.com

How we chose and compared these options

We list providers in alphabetical order rather than ranking them, because the right choice depends on your situation. To be included, each product must be widely available to U.S. consumers and publish its terms online. We compared them on the following criteria:

  • Credit bureau reporting. Whether the card reports to the major credit bureaus, which is essential for building credit.
  • Deposit requirements. Whether a refundable security deposit is required and how it relates to the credit line.
  • Graduation path. Whether the issuer reviews accounts for credit line increases or conversion to an unsecured card.
  • Costs. Annual fees and APRs from the issuer’s pricing information. We show a figure only when verified.
  • Rewards. Whether the card earns rewards — a bonus, not a requirement, for a first card.

Compensation from providers never affects which products appear or how we describe them. Read our full editorial methodology and affiliate disclosure.

Using a first card to build credit

  • Charge a small, planned expense each month and pay the full statement balance automatically.
  • Keep utilization low — on a small limit, even modest spending can look high.
  • Don’t carry a balance. Starter cards often have high APRs, and you don’t need to pay interest to build credit.
  • Check your reports after a few months to make sure the account is reported correctly.

Read how to build credit for the full plan, and how credit card interest works to avoid interest entirely.

Frequently asked questions

Should my first card be secured or unsecured?

If you can qualify for an unsecured starter card, it avoids tying up a deposit. If not, a secured card is a reliable way to begin building credit.

Do secured cards help your credit as much as regular cards?

When the issuer reports to the credit bureaus, a secured card’s payment history and utilization are reported like any other card.

How soon can I upgrade from a secured card?

Policies vary by issuer. Many review accounts periodically after several months of on-time payments.

Sources

  1. Credit cards — Consumer Financial Protection Bureau
  2. Credit reports and scores — Consumer Financial Protection Bureau

Read before you choose