are credit cards secured

We have researched the secured credit cards for bad credit. Hence, this article on what are the best secured credit cards. Are Credit Cards Secured?

When your credit score is in the lowest range—579 or below—finding a credit card issuer who will approve you for one of its products can seem like an impossible feat. Fortunately, card issuers offer one type of credit card that almost anyone can be approved for. With a secured credit card, consumers with poor credit get the chance to build credit, practice good credit card habits and prove their creditworthiness over time.

secured credit cards for bad credit

Are Credit Cards Secured

Secured credit cards are a type of credit card that requires a cash deposit as collateral. This credit limit is often equal to 50 percent to 100 percent of the amount of the initial deposit. If you apply for a secured credit card and put down a $1,000 deposit as collateral, for example, you’ll likely qualify for a $500 to $1,000 line of credit as a result.

You may be wondering why anyone would want a credit card that requires a cash deposit upfront, but it makes sense why consumers with poor credit might be willing to apply. Getting approved for a traditional, unsecured credit card can be very difficult when your credit score is poor, yet you may not be able to improve your credit over time if you can’t find a lender to give you credit.

With a secured credit card, on the other hand, consumers who need to work on their scores can secure a line of credit with a cash deposit. And since their payments are reported to the three credit bureaus, they get the opportunity to build credit and improve their credit rating over time. Double-check with the issuing company to make sure it will be reporting your payment history to the three main credit bureaus. If it doesn’t, you won’t be able to help your credit by using the secured credit card.

How does a secured credit card work?

A secured credit card functions similarly to a debit card. You’re essentially relying on your cash deposit, which is what translates to your secured line of credit, to make purchases.

Let’s take a closer look at how secured credit cards work.

To get a secured credit card, you can apply for one at a bank, credit union or credit card company. The financial institution you’re working with may check your credit history during the approval process.

If approved, you’ll need to make a deposit that acts as collateral. This is often at least $200 and can be as high as $2,000 to $3,000. In some cases, your deposit amount will act as your credit limit, although your limit may also be less than the deposit amount. After making the initial deposit, you can use the card to make purchases in-person or online up to your credit limit amount.

Once you pay off your balance for any recent purchases, you can then use the card again to make more purchases. If you don’t pay off your balance in full each month, you will start to incur interest on the carried balance.

The secured credit card provider should report information about your account to the three main credit bureaus, which can help build your credit score.

Secured vs. unsecured credit cards

Generally speaking, unsecured credit cards are a better deal for consumers. When a card is unsecured, this means you don’t have to put down a deposit as collateral. Unsecured credit cards also tend to come with better perks and rewards, lower fees and lower interest rates.

The following chart explains some of the biggest differences between secured versus unsecured credit cards:

Unsecured credit cardsSecured credit cards
Deposit required?NoYes
Minimum credit score to qualifyUsually 670+Available for scores below 579
Average APRAround 16 percent (as of February 2021)Often over 20 percent
Annual fee charged?SometimesUsually
Helps you build credit by reporting to credit bureausYesUsually
Rewards available?Yes, with many rewards credit cardsUsually no

How to build credit with a secured vs. unsecured card

When it comes to building your credit score, you’ll use the same process with a secured credit card as you would with an unsecured credit card.

Both types of cards typically report to the three credit bureaus—Experian, Equifax and TransUnion. This means your balances and credit card payments will be noted by the credit bureaus and you’ll start building a history of positive payments and responsible credit usage.

If your goal is building credit and keeping your score in the best shape possible, you should strive to pay your credit card bill early or on time each month and keep your credit utilization rate below 30 percent.

what are the best secured credit cards

Best secured credit cards for 2021

In the market for a secured credit card? If so, you should take the time to compare all the top offers to find one with the best benefits and lowest fees. Bankrate compared dozens of secured credit cards to find the best offers available, and here are the top three options:

Best for earning rewards: Discover it® Secured Credit Card

The Discover it® Secured Credit Card is one of the few secured credit cards that lets consumers earn rewards without charging an annual fee. You’ll earn 2 percent cash back at gas stations and restaurants (up to $1,000 in combined spending each quarter, then 1 percent) and an unlimited 1 percent cash back on everything else. The Discover it® Secured Credit Card also allows you to set your own line of credit between $200 and $2,500, depending on the deposit amount you put down.

At the end of your first year, Discover will match all of the cash back you’ve earned. You also get free FICO credit score access on your credit card statement each month, which can help you monitor your credit progress over time.

Best for no credit check: OpenSky® Secured Visa® Credit Card

The OpenSky® Secured Visa® Credit Card is a good option if you don’t have any credit history at all. You’ll have to pay a $35 annual fee to carry this card, but you get the chance to get a credit card without any sort of credit check. This card lets you choose your own line of credit amount based on the deposit you put down (between $200 and $3,000), and your credit movements will be reported to all three credit bureaus.

This card doesn’t offer any rewards or perks, but it can be a solid option if you want a credit card but don’t want a new hard inquiry on your credit report.

Best for low deposit requirements: Secured Mastercard® from Capital One

The Secured Mastercard® from Capital One lets you secure a line of credit with a $49, $99 or $200 refundable deposit, which makes this card a good option for anyone who doesn’t have a lot of cash to put down. What’s more, Capital One will monitor your account to check if you will be automatically considered for a higher credit line in as little as six months with on-time payments.

You won’t earn any rewards with this card, but you won’t pay an annual fee to carry it, either. You also get the chance to pick your own monthly due date, which can be convenient if you prefer to pay your credit card bill at the end of the month or around payday.


AliExpress is a massively popular Chinese online retail service owned by Alibaba Group. It was launched in 2010 and hasn’t stopped its journey to becoming the ‘biggest online marketplace of the world‘ ever-since. AliExpress stands toe-to-toe even with Amazon in terms of buyers worldwide. It offers wholesale goods at direct-to-consumer prices from Chinese sellers.×280&!4&fsb=1&xpc=8cuC4mzf5A&p=https%3A//

It also works as a great dropshipping model for a lot of e-commerce entrepreneurs. Along with a lot of good sides, AliExpress has some cons as well. The biggest problem is the shipping time of AliExpress orders, which is pretty long considering the goods come from China. Also, some orders can be very expensive after shipping charges and taxes.

So, it is a good thing to have some AliExpress alternatives whenever you don’t like its services. That’s why we are telling you about 21 best sites like AliExpress. Some of these websites offer cheaper prices and faster shipping on certain products. And, you can also use them to maintain a nice profit margin for your dropshipping business.


LightInTheBox is the perfect AliExpress alternative as it is also a Chinese e-Store. It sells hot and trending products across the globe. Their products range from phone and electronics to fashion, jewelry, shoes, bags, and many other items. You can find almost anything here at a very cheap price.

The delivery time of LightInTheBox is also similar to AliExpress as their warehouses are located only in China. But, you may get a faster shipping time due to having fewer orders to ship. You can pay for your orders with PayPal, Western Union, or your credit card.


Wish is a widely popular online marketplace where you can buy almost anything. From clothing to footwear, electronics, healthcare items, and many more things, you can get them all for an incredibly cheap price. They are also known to offer great deals and coupons to their new customers.

Their shipping time is also faster than AliExpress as their products come from sellers located in small countries. Wish also provides an advanced rating system that is very helpful for both the consumers as well as sellers. It helps promote good ones.


Overstock is a US-based online marketplace. It makes profit by selling wholesale products at a highly cheap price tag. A major portion of their stock is comprised of overstock from the major retailers or their seconds. You can find some really amusing deals here. The shipping time will also be lower as compared to the Chinese marketplaces. You can get your items within a week.

The product range of Overstock is incredible. You can find everything such as clothing, decor, kitchen appliances, and many more items. You can even find furniture and other big home items. So, you can use to fill your house with great stuff at a reduced price.


DealeXtreme, more popularly known as DX, is an amazing online marketplace. The website works in a very similar manner as ‘Wish’ and sells cheap products coming directly from sellers. It has partnered with many small businesses and sells its products to a wide base of audience.!5&fsb=1&xpc=RWnb5aKmsb&p=https%3A//

The shipping time is a problem with DX also because their warehouses are located in China. Apart from this, you can get some really worthy deals on DX. You should always keep an eye on their clearance sales for the best prices.


Gearbest is the perfect AliExpress alternative if you are looking to shop for the latest gadgets or electronic devices. It works with over 5000 Chinese brands and top suppliers to deliver the best products. It has products from top Chinese companies such as Xiaomi, Huawei, Lenovo, and many others. But, it isn’t just an electronic store.

You can also find a massive range of other products as well. The prices available on GearBest are reduced, and you can even reduce them with the available coupons. They also have warehouses in multiple countries. So, you can get faster shipping from the local warehouse.


BangGood is another Chinese e-commerce platform that provides worldwide shipping of cheap goods. You can find almost anything on this website, from clothing to electronics, and even home items. The prices available are marked down from their original prices. You can also get amazing deals during special clearance sales.

BangGood provides a free $20 coupon to every new user. The shipping time for BangGood orders is faster than AliExpress for certain products. However, the regular shipping time is similar.


ChinaBrands is a widely popular Chinese e-Store where you can buy products at wholesale prices. You can find almost anything on this website at a highly affordable price. Their shipping prices are also low but you will get a long shipping time. It is the perfect website for buyers who want the lowest prices but can wait for their orders for at least a month.

Most of the ChinaBrands sellers run their factories from China, and their warehouses are located there only. This is the reason for the considerably long shipping time.


Bonanza is a unique American online marketplace where you can find a great range of products. They have over 20 million items from more than 50,000 sellers. It is a growing e-commerce store where even you can sell your items. It is a preferred platform by more than 20,000 entrepreneurial sellers. You can find some really amazing handcrafted items and collectibles here.

For people looking to shop regular items, this store may disappoint you a little. The prices of some items may be a little higher than some Chinese stores. But, the quality provided will be worth it.


Here are 21 AliExpress Alternatives that you can use to shop online.

  1. LightInTheBox
  2. Wish
  3. Overstock
  4. DealXtreme (DX)
  5. GearBest
  6. BangGood
  7. ChinaBrands
  8. Bonanza
  9. DHGate
  10. TinyDeal
  11. Target
  12. MiniInTheBox
  13. GeekBuying
  14. Jet
  15. TomTop
  16. Target
  17. MadeInChina
  18. American Greenwood
  19. Walmart
  20. eBay
  21. Amazon


AliExpress is amazing but it is always good to have options when you are shopping. So, these are the 21 best sites like AliExpress. If you ever feel like you should look somewhere else, these are some stores that you should visit. You can also use these for your dropshipping business if you are an aspiring entrepreneur. Make sure you have a solid plan before beginning.

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