Prepaid credit cards are often referred to as secured credit cards and can certainly help you build credit. Secured credit cards are one of the best options to rebuild your credit or establish a positive credit history if you have a thin credit profile.
With secured cards, you pay a security deposit which then becomes the credit limit that you can borrow against when you charge your card. Each month, you’ll need to pay your secured credit card bill on time and the payments should be reported to the major credit bureaus to improve your score.
Secured MasterCard from Capital One
- Accepted at millions of locations worldwide
- Make the minimum required security deposit and you’ll get an initial credit line of $200. Plus, deposit more money before your account opens to get a higher credit line
- Access to an authorized bank account is required to make your $49, $99, or $200 refundable security deposit
- Be automatically considered for a higher credit line in as little as 6 months with no additional deposit needed
The Secured MasterCard from Capital One is one of the best prepaid credit card options to consider if you’re looking for no annual fees. You can choose from three different amounts to put a security deposit down and start using the card. As you use your card wisely and make on-time payments, you will help build your personal credit score, and Capital One will return your security deposit as a statement credit. In as little as six months, you could be automatically approved for a credit limit increase as well.
OpenSky Secured Visa Credit Card
- No credit check necessary to apply. OpenSky believes in giving an opportunity to everyone.
- The refundable deposit you provide becomes your credit line limit on your Visa card. Choose it yourself, from as low as $200.
- Build credit quickly. OpenSky reports to all 3 major credit bureaus.
- OpenSky provides credit tips and a dedicated credit education page on our website to support you along the way.
The OpenSky Secured Visa Credit Card is best for anyone looking to repair their credit or start establishing a credit history. Open Sky won’t check your credit when you apply for its prepaid card, so everyone is given a fair opportunity. Instead, you’ll just choose a line of credit and secure it by making a one-time refundable deposit. Your deposit is held in an FDIC-insured account, and the full amount (minus any amounts or fees owed) will be returned to you after your card is closed.
Bank of America Customized Cash Rewards Secured credit card
- Unlimited 1% cashback on all other purchases
- A minimum refundable security deposit of $300 (maximum of $4,900) is required to open this account
- Access your FICO® Score updated monthly for free, within your Mobile Banking app or in Online Banking
- No annual fee
The Bank of America Customized Cash Rewards Secured credit card looks and works just like any other credit card. While you will need to put down a security deposit to open your account and receive your credit limit, this secured card also allows you to earn rewards for your spending. Another benefit of using this prepaid credit card is that you can access your FICO score each month for free within the mobile app. Just opt-in to receive your score and gain the necessary information to improve your credit over time.