What Are the Best Cash Back Secured Credit Cards?

Cash back secured credit cards are an excellent way to build your credit score while earning rewards on your purchases. These cards require a security deposit, which serves as collateral and helps you establish a positive credit history. If you're looking for the best cash back secured credit cards, there are several options to consider.

1. Discover it Secured Credit Card

The Discover it Secured Credit Card offers 2% cash back on gas stations and restaurants, up to $1,000 in combined purchases each quarter, and 1% cash back on all other purchases. Plus, your cash back rewards are matched at the end of your first year. This card also has no annual fee and allows you to earn rewards while building your credit.

2. Capital One Secured Mastercard

The Capital One Secured Mastercard offers 1.5% cash back on all purchases, with no limit on how much you can earn. This card also has no annual fee and allows you to increase your credit limit with responsible use. Additionally, you can access a higher credit line after making your first five monthly payments on time.

3. Citi Secured Mastercard

The Citi Secured Mastercard offers 1% cash back on all purchases, with no limit on how much you can earn. This card also has no annual fee and allows you to build your credit score with responsible use. Additionally, you can access a higher credit line with a larger security deposit.

Applying for a secured credit card can be a great way to build your credit score and earn rewards. However, it's important to keep in mind that these cards typically have higher interest rates and fees than traditional credit cards. To avoid paying unnecessary fees, make sure you pay your balance in full each month and avoid carrying a balance.

When applying for a secured credit card, it's important to choose a card that fits your spending habits and financial goals. Look for a card with rewards that align with your spending, and make sure the card reports your payments to the credit bureaus so you can build your credit score.

In addition, make sure you understand the card's fees, including any annual fees or penalty fees for late payments. You should also be aware of the security deposit required for the card and how it will be returned to you if you close your account or upgrade to an unsecured credit card.

In conclusion, cash back secured credit cards can be a great way to build your credit score while earning rewards. By choosing a card that fits your spending habits and financial goals, you can benefit from the rewards and establish a positive credit history. However, it's important to be aware of the card's fees and potential risks, and to use the card responsibly to avoid unnecessary fees and damage to your credit score.