What Are the Best Cash Back Secured Credit Cards?

Cash backsecured credit cardsare a great option for those looking to build credit while earningrewards. These cards require a security deposit, but in return offer cash back on purchases, helping users save money. In this article, we will explore the bestcash back secured credit cardson the market, their features, and how to apply for them.

Best Cash Back Secured Credit Cards

1. Discover it Secured: This card offers 2% cash back on gas and dining purchases and 1% cash back on all other purchases. It also has no annual fee and reports to all three credit bureaus, making it a great option forbuilding credit.

2. Capital One Secured Mastercard: This card has no annual fee and offers 1.5% cash back on all purchases. It also has the potential to increase the credit limit with responsible use, making it a great option for those looking to build credit.

3. Citi Secured Mastercard: This card offers 2% cash back on gas and groceries and 1% cash back on all other purchases. It also has no annual fee and reports to all three credit bureaus.

4. Bank of America Cash Rewards Secured Credit Card: This card offers 3% cash back on gas purchases, 2% cash back on grocery purchases, and 1% cash back on all other purchases. It also has no annual fee and reports to all three credit bureaus.

How to Apply for a Cash Back Secured Credit Card

1. Determine yourcredit score: Before applying for any credit card, it's important to know your credit score. You can obtain a free credit report annually from each of the three credit bureaus at annualcreditreport.com.

2. Research cards: Look into the different cash back secured credit cards available and compare their features, fees, and rewards.

3. Apply: Once you have chosen a card, fill out the application and provide the required security deposit.

Tips for Using Cash Back Secured Credit Cards

1. Pay on time: Late payments can result in fees and damage to your credit score.

2. Use responsibly: Only use the card for purchases you can afford to pay off in full each month.

3. Monitor your credit: Keep an eye on your credit score and report to ensure accuracy and identify any potential fraud.

4. Avoid carrying a balance: Interest charges can quickly add up, negating any rewards earned.

In conclusion, cash back secured credit cards can be a great option for building credit while earning rewards. It's important to research and compare different cards before applying and to use the card responsibly to avoid fees and maintain a healthy credit score. By following these tips, users can get the most out of their cash back secured credit card.