Secured Credit Cards Explained: Build Credit from Zero in 2026

bankseermain on December 28, 2025

Over 45 million Americans have no credit score or insufficient credit history. If you’re starting from zero, a secured credit card is the fastest way to build credit—but they work differently than regular cards.

This guide explains everything: how secured cards work, real costs, approval process, and the 6 best secured cards in 2025.

What Is a Secured Credit Card?

A secured credit card requires a refundable security deposit that becomes your credit line. The deposit protects the card issuer if you don’t pay your bill.

Simple example:

  • You deposit $300
  • You get a credit card with $300 limit
  • You use it and pay monthly (just like any credit card)
  • After 6-12 months of on-time payments, you can upgrade to unsecured card
  • You get your $300 deposit back

The deposit is not a payment. It sits in a savings account and you get it back when you close the card or graduate to unsecured.

How Secured Cards Build Credit

Reports to All 3 Credit Bureaus

Secured cards report to Experian, Equifax, and TransUnion exactly like regular credit cards. There’s no notation that says “secured” on your credit report.

This means:

  • Payment history builds your score
  • On-time payments increase your credit
  • Late payments damage your credit
  • Credit utilization affects your score

Timeline to Build Credit

Month 1: Deposit clears, card activated, no score yet
Month 2-3: Credit bureaus receive first reports
Month 4-6: Credit score appears (usually 600-650 range)
Month 7-12: Score improves to 680-720 with perfect payments
Month 12+: Eligible for unsecured cards and graduation

Real data: According to Experian, people with secured cards see average score increases of 35-40 points within 6 months of responsible use.

Secured vs. Unsecured Credit Cards

Feature Secured Card Unsecured Card
Deposit Required Yes ($49-$5,000) No
Approval Easy (no credit needed) Requires credit history
Credit Building Yes (same as unsecured) Yes
Reports to Bureaus Yes (all 3) Yes (all 3)
Can Graduate Yes (6-18 months) N/A
Get Deposit Back Yes (when graduate/close) N/A
Annual Fees $0-$49 $0-$99+

6 Best Secured Credit Cards (2025)

1. Discover it® Secured – Best Overall

Why it’s #1: Only secured card with cashback rewards

Key Details:

  • Deposit: $200 minimum (up to $2,500)
  • Annual Fee: $0
  • Rewards: 2% cashback at gas/restaurants (up to $1k/quarter), 1% everything else
  • Cashback Match: Discover matches all cashback first year (effectively 4% gas/restaurants, 2% everything)
  • Graduation: Automatic review after 8 months
  • Credit Score Tracking: Free FICO score monthly

Real Costs:

  • Year 1: $0 in fees + earn ~$50-150 in cashback
  • Deposit returned after graduation

Approval Rate: ~85% of applicants with no credit approved (based on user reports)

Apply for Discover it Secured →

Pro tip: Use for gas and dining to maximize 2% cashback. $50/month spend = $12/year cashback + $12 match = $24 free money.

Capital One Platinum vs Discover it Secured

2. Capital One Platinum Secured – Lowest Deposit

Why choose this: Start with just $49 deposit

Key Details:

  • Deposit: $49, $99, or $200 (determines starting limit)
  • Annual Fee: $0
  • Rewards: None
  • Graduation: Possible after 6 months, automatic reviews
  • Credit Line Increases: Possible without additional deposit after 6 months

Real Costs:

  • Year 1: $0 in fees
  • Can start with as little as $49

Unique Feature: Capital One may increase your credit limit without requiring additional deposit after 6 months of good payment history.

Example: Start with $200 limit, after 6 months get increased to $500 limit without adding $300 more deposit.

Apply for Capital One Platinum Secured →

Best for: People who can’t afford $200+ deposit immediately.

3. Citi® Secured Mastercard® – Fastest Graduation

Why choose this: Can graduate in as little as 7 months

Key Details:

  • Deposit: $200-$2,500
  • Annual Fee: $0
  • Rewards: None
  • Graduation: Automatic reviews starting at 7 months
  • Credit Line Increases: After 18 months with good history

Real Costs:

  • Year 1: $0 in fees
  • Faster path to unsecured card

What makes it special: Citi has the shortest timeline for graduation reviews. Most users report graduation within 8-10 months.

Apply for Citi Secured Mastercard →

4. Bank of America® Customized Cash Rewards Secured – Best Rewards Flexibility

Why choose this: Choose your 3% cashback category

Key Details:

  • Deposit: $200-$5,000
  • Annual Fee: $0
  • Rewards:
    • 3% category of choice (gas, online shopping, dining, travel, drugstores, home improvement)
    • 2% at grocery stores and wholesale clubs (up to $2,500/quarter combined)
    • 1% everything else
  • Graduation: Typically 12-24 months
  • Extra Perk: 10% relationship bonus if you have BofA checking/savings (3.3% becomes 3.3%, etc.)

Real Costs:

  • Year 1: $0 fees + earn $50-200 in cashback

Strategy: Choose “online shopping” as 3% category to maximize everyday purchases (Amazon, etc.)

Apply with Bank of America →

Best for: Existing Bank of America customers (easier approval).

5. OpenSky® Secured Visa® – No Credit Check

Why choose this: Guaranteed approval, no credit check at all

Key Details:

  • Deposit: $200-$3,000
  • Annual Fee: $35
  • Rewards: None
  • No Credit Check: Guaranteed approval with deposit
  • Reports to: All 3 credit bureaus
  • Graduation: Does not graduate (you must apply for unsecured card elsewhere)

Real Costs:

  • Year 1: $35 annual fee
  • Year 2: $35 annual fee

The trade-off: You pay $35/year for guaranteed approval and no credit check. Worth it if you’ve been denied everywhere else.

Apply for OpenSky Secured →

Best for: People denied by other issuers, or those who want to avoid hard inquiry.

6. Chime Credit Builder – No Interest Ever

Why it’s different: Works like debit card, reports as credit card

Key Details:

  • Deposit: Uses your Chime spending account balance
  • Annual Fee: $0
  • Interest: 0% (you can’t carry a balance)
  • How it works: Purchases pull from secured account, paid off automatically
  • Rewards: None (but optional “round-up” savings feature)

Real Costs:

  • Year 1: $0 fees, $0 interest (impossible to pay interest)

How Chime Credit Builder works:

  1. Open free Chime checking account
  2. Transfer money to Credit Builder secured account
  3. Use card for purchases
  4. Purchases pull from secured balance automatically
  5. Reports as on-time payment to credit bureaus
  6. You literally cannot go into debt or pay interest

Example: You put $500 in Credit Builder. Buy $50 groceries. Balance drops to $450. Next month, it reports as “$50 paid on time” to credit bureaus.

Get Chime Credit Builder →

Chime Bank Review

Best for: People who want zero risk of debt or interest charges.

How to Choose Your Secured Card

Choose Discover it Secured if:

  • You have $200+ for deposit
  • Want to earn cashback while building credit
  • Want best overall value

Choose Capital One Platinum if:

  • You only have $49-$99 available
  • Need lowest entry barrier
  • Want potential for credit increases without more deposit

Choose Citi Secured if:

  • Want fastest path to graduation
  • Have $200+ for deposit
  • Don’t need rewards

Choose Bank of America Secured if:

  • You’re already a BofA customer
  • Want customizable cashback categories
  • Have $200+ for deposit

Choose OpenSky if:

  • You’ve been denied everywhere
  • Want to avoid credit check
  • Don’t mind $35/year fee

Choose Chime Credit Builder if:

  • You want zero interest charges
  • Like automatic payment feature
  • Want guaranteed no-debt option

Step-by-Step: Getting a Secured Card

Before You Apply

1. Check your budget:

  • Can you afford $200-$300 deposit?
  • This money is locked up for 6-12 months
  • You’ll get it back, but can’t access it meanwhile

2. Gather required documents:

  • Government-issued ID
  • Social Security Number or ITIN
  • Proof of income (paystub, tax return, bank statements)
  • US address (can’t use P.O. Box for most cards)

3. Open a bank account (if you don’t have one):

  • Required for security deposit
  • Shows financial stability
  • Needed for automatic payments

Application Process

Step 1: Choose your card based on criteria above

Step 2: Apply online (takes 5-10 minutes):

  • Personal information
  • Income (list all sources: job, self-employment, benefits, allowances)
  • Housing costs
  • Employment information

Step 3: Get decision:

  • Instant approval: Most common for secured cards (70%+ of applicants)
  • Pending review: 7-10 business days
  • Denial: Rare for secured cards; usually due to recent bankruptcy or identity issues

Step 4: Make deposit:

  • Usually within 14 days of approval
  • Via bank transfer or check
  • Card ships after deposit clears (7-10 days)

After Approval: First 6 Months

Month 1-2: Establish Patterns

  • Activate card immediately
  • Make 1-3 small purchases ($10-30)
  • Pay statement balance in full before due date
  • Set up autopay for at least minimum payment

Month 3-4: Increase Usage

  • Use for regular expenses (gas, groceries, subscriptions)
  • Keep utilization under 30% of limit
  • Continue paying in full
  • Check credit score (if card provides free monitoring)

Month 5-6: Build Consistency

  • Maintain regular usage pattern
  • Never miss payment
  • Keep utilization low (ideally under 10%)
  • Consider requesting credit line increase (if available)

How to Graduate to Unsecured Card

Automatic Graduation (Best Scenario)

Discover it Secured:

  • Automatic review after 8 months
  • If you’ve paid on time every month, they’ll upgrade
  • Deposit refunded, same account number
  • Usually happens at month 8-10

Capital One Platinum:

  • Automatic reviews starting at 6 months
  • May increase limit without deposit first
  • Full graduation typically 12-18 months
  • Deposit refunded when graduated

Citi Secured:

  • Automatic reviews starting at 7 months
  • Fastest graduation of major issuers
  • Deposit refunded upon upgrade

Manual Request

If your card doesn’t auto-graduate:

After 12 months of perfect history:

  1. Call card issuer customer service
  2. Request “product change to unsecured card”
  3. Reference your perfect payment history
  4. Ask about their graduation criteria

Success rate: ~70% if you have 12+ months of on-time payments and utilization under 30%

Common Questions & Mistakes

Can I add more to my deposit later?

Yes, with most cards. Additional deposits usually increase your credit limit dollar-for-dollar.

Example: Start with $200 limit, deposit another $300, now have $500 limit.

Will it show as “secured” on my credit report?

No. Credit reports show it as a regular credit card. Employers, landlords, lenders can’t tell it’s secured.

What happens if I miss a payment?

Immediate consequences:

  • Late fee ($25-$40)
  • Potential interest rate increase
  • Credit score drops (90-110 points for first missed payment)

Your deposit is not used unless you completely default and stop paying for months.

Can I get my deposit back early?

Usually no, unless:

  • You close the account (hurts your credit)
  • You upgrade to unsecured card (best option)
  • Card issuer offers it (rare)

How much should I use the card?

Ideal usage: 1-10% of your credit limit per month

Example with $500 limit:

  • Perfect: $20-50/month ($240-600/year)
  • Good: $50-150/month
  • Risky: $150-$450/month (high utilization hurts score)
  • Bad: $450-$500/month (maxed out card tanks score)

Common Mistake #1: Not Using the Card

Bad: Getting card and never using it won’t build credit effectively.

Good: Make at least 1 purchase per month, even if just $5-10.

Common Mistake #2: Carrying a Balance

Myth: “I need to carry a balance to build credit.”

Reality: Pay in full every month. You don’t need to pay interest to build credit. Just use the card and pay it off.

Common Mistake #3: Closing Card After Graduation

Bad: Getting unsecured card and immediately closing secured card.

Good: Keep first card open. Length of credit history matters (15% of credit score). Keep it open even if you stop using it.

Building Credit: The Numbers

Credit Score Factors

Payment History (35%) – Most important

  • Pay on time = +5-10 points/month
  • Miss payment = -90-110 points immediately

Credit Utilization (30%) – Second most important

  • Under 10% = Best for score
  • 10-30% = Good
  • 30-50% = Fair (score impact)
  • 50%+ = Major negative impact

Length of History (15%)

  • Longer is better
  • Keep first card open forever

Credit Mix (10%)

  • Having different types helps (cards, loans)
  • Not critical early on

New Credit (10%)

  • Each application = hard inquiry (-5 to -10 points)
  • Space applications 3-6 months apart

Real Timeline: Zero to 700+ Score

Starting Point: No credit score

Month 1-3:

  • Use secured card monthly
  • Pay on time
  • Score: N/A (building)

Month 4-6:

  • Credit score appears: 580-620 range
  • Continuing on-time payments
  • Score: 600-650

Month 7-12:

  • Established payment history
  • Possible graduation to unsecured
  • Score: 650-700

Month 13-18:

  • Good credit established
  • Can apply for second card
  • Score: 680-720

Month 18-24:

  • Multiple credit lines
  • Longer history
  • Score: 700-750+

Advanced Strategies

The Two-Card Method (Accelerated Building)

Month 1-6: Get and use one secured card perfectly

Month 6-9: Apply for second secured card (different issuer)

Why it works:

  • Two cards = two reporting tradelines
  • Lower utilization (more available credit)
  • Faster credit building
  • Redundancy if one card has issues

Example:

  • Card 1: Discover it Secured ($300 limit)
  • Card 2: Capital One Platinum ($200 limit)
  • Total credit: $500
  • Spend $50/month total = 10% utilization vs 16.6% with one card

The Graduation Timing Strategy

Don’t wait passively for graduation:

Month 8: Request upgrade if not automatic
Month 12: If denied, apply for new unsecured card elsewhere
Month 13: Close secured card (after unsecured approval) or keep both

The Credit Limit Increase Approach

Every 6 months:

  1. Request credit limit increase
  2. Either add deposit OR request increase without deposit
  3. Lower utilization ratio improves score

Example:

  • Start: $500 limit, $50 usage = 10% utilization
  • After increase: $1,000 limit, $50 usage = 5% utilization
  • Better for credit score

Costs Breakdown: Year 1

Discover it Secured

  • Deposit: $200 (refundable)
  • Annual Fee: $0
  • Interest: $0 if paid in full
  • Cashback Earned: ~$50-150
  • Net Cost: -$50 to -$150 (you make money)

Capital One Platinum

  • Deposit: $49-$200 (refundable)
  • Annual Fee: $0
  • Interest: $0 if paid in full
  • Rewards: None
  • Net Cost: $0

OpenSky Secured

  • Deposit: $200 (refundable)
  • Annual Fee: $35
  • Interest: $0 if paid in full
  • Rewards: None
  • Net Cost: $35

Chime Credit Builder

  • Deposit: Uses your balance (not locked)
  • Annual Fee: $0
  • Interest: $0 (impossible to pay interest)
  • Rewards: None
  • Net Cost: $0

When to Upgrade From Secured Card

Upgrade when you’ve achieved:

✅ 12+ months of on-time payments
✅ Credit score 680+
✅ Low credit utilization (under 30%)
✅ Stable income

Signs you’re ready for unsecured card:

  • Card issuer offers you graduation
  • You receive pre-approved offers in mail
  • Your credit score crossed 680-700
  • You’ve maintained account for 12+ months

Best unsecured cards to apply for next:

  1. Chase Freedom Unlimited (5% grocery first year, 3% dining/drugstores)
  2. Citi Double Cash (2% on everything)
  3. Discover it Cash Back (5% rotating categories)
  4. Capital One QuicksilverOne (1.5% everything, $39 fee)

Red Flags to Avoid

❌ Cards with Monthly Maintenance Fees

Some secured cards charge $5-10/month “maintenance fees.” Avoid these. Stick with cards that have $0 annual fee or low one-time annual fee.

❌ Cards That Don’t Report to All 3 Bureaus

Verify card reports to Experian, Equifax, AND TransUnion. Some no-name cards only report to one bureau.

❌ Cards with No Graduation Path

OpenSky is exception (worth it for guaranteed approval). But generally, choose cards that graduate to unsecured.

❌ Prepaid/Debit Cards Marketed as “Credit Cards”

Not the same. Look for “secured credit card” specifically. Prepaid cards don’t build credit.

Alternatives to Secured Cards

If You’ve Been in US 3+ Months:

Petal 2 Visa: No deposit, looks at bank account instead of credit history

  • No security deposit
  • 1-1.5% cashback
  • Requires SSN (not ITIN) and 3+ months US bank account history

If You’re an International Student:

Deserve EDU Mastercard: No deposit, no SSN required initially

  • 1% cashback
  • Built for F-1 visa students
  • Can apply without SSN

Best Credit Cards for Immigrants and international students

If You Want Fastest Credit Building:

Authorized User: Ask family member with good credit to add you as authorized user

  • Instant credit history
  • Their payment history helps your score
  • No deposit required
  • Downside: Dependent on their credit behavior

Bottom Line: Best Secured Card for Most People

For 80% of people: Discover it Secured

Why:

  • $0 annual fee (saves $35-49/year vs competitors)
  • Earn cashback (most secured cards offer no rewards)
  • Automatic graduation review at 8 months
  • Free FICO score tracking
  • Strong customer service
  • Proven track record of graduation

Total cost over 12 months: $0 in fees, +$50-150 in cashback = You make money while building credit

Alternative if budget is tight: Capital One Platinum with $49 deposit

Alternative if denied everywhere: OpenSky for guaranteed approval

Start Building Credit Today

The biggest mistake is waiting. Every month you delay is another month without credit history.

Your action plan:

  1. Choose card from list above (Discover it Secured for most people)
  2. Apply online (takes 10 minutes)
  3. Make deposit when approved
  4. Use card for small purchases
  5. Pay in full every month
  6. Watch your credit score grow

In 6-12 months, you’ll have good credit that qualifies you for apartments, car loans, better credit cards, and lower insurance rates.

Don’t overthink it. Pick a card, apply, and start building today.

Need help deciding which secured card is right for you? Check out our detailed comparison of the best credit cards for immigrants with no credit →

Best Credit Cards for Immigrants with No Credit History (2026)

bankseermain on December 28, 2025

Moving to the United States and building credit from scratch is challenging. Over 26 million immigrants in the US have limited or no credit history, making it difficult to get approved for traditional credit cards.

The good news? Several credit card issuers specifically design products for people starting their credit journey. I’ve researched every major issuer to find cards that actually approve immigrants with no US credit history.

What You Need to Know First

Why No Credit History Matters

When you move to the US, your credit history from your home country doesn’t transfer. To US banks, you’re starting from zero—even if you had excellent credit back home.

Without US credit history, you typically can’t:

  • Get approved for traditional credit cards
  • Qualify for auto loans with good rates
  • Rent apartments without high deposits
  • Get approved for mortgages

Building credit is essential, and a credit card is the fastest way to start.

What Credit Card Companies Look For

When you have no credit history, issuers evaluate:

  • Income: Proof you can pay bills
  • Employment: Stable job history
  • Bank account: Shows financial responsibility
  • ITIN or SSN: Required for all cards

Some cards are more lenient than others. Let’s look at your best options.

7 Best Credit Cards for Immigrants with No Credit

1. Discover it® Secured Credit Card – Best Overall

Why it’s #1: No credit history required, $0 annual fee, cashback rewards

Key Features:

  • Security deposit: $200 minimum
  • Cashback: 2% at gas stations and restaurants (up to $1,000/quarter), 1% on everything else
  • No annual fee
  • Free FICO score tracking
  • Graduates to unsecured card after 8 months of responsible use

Requirements:

  • SSN or ITIN
  • US bank account
  • Verifiable income

Why it works for immigrants: Discover specifically states they accept applicants with no credit history. The cashback feature means you’re not just building credit—you’re earning money back.

Apply for Discover it Secured →

Typical Timeline:

  • Month 1-8: Use secured card, pay on time
  • Month 8: Discover reviews account for graduation
  • Month 9+: Unsecured card, deposit returned

2. Capital One Platinum Secured Credit Card – Most Flexible Deposits

Why choose this: Deposit as low as $49, easy approval

Key Features:

  • Security deposit: $49, $99, or $200 (determines credit limit)
  • $0 annual fee
  • Automatic reviews for credit line increases
  • Potential graduation to unsecured

Requirements:

  • SSN or ITIN
  • US address
  • Bank account for deposit

Why it works: Capital One has lower deposit requirements than most secured cards. If you can only afford $49 to start, this is your card.

Apply for Capital One Platinum Secured →

Capital One Platinum vs Discover it Secured

3. Petal® 2 “Cash Back, No Fees” Visa® Credit Card – No Deposit Required

Why choose this: Skip the security deposit entirely

Key Features:

  • No security deposit needed
  • Cashback: 1% on eligible purchases (up to 1.5% after 12 months)
  • No annual fee
  • No foreign transaction fees

Requirements:

  • SSN (ITIN not accepted)
  • US bank account with 3+ months history
  • Regular income

How it works: Petal looks at your bank account activity instead of credit history. They analyze income and spending patterns to make approval decisions.

Why it’s unique: If you’ve been in the US for a few months with steady bank deposits, you can skip the secured card route entirely.

Apply for Petal 2 →

4. OpenSky® Secured Visa® Credit Card – No Credit Check

Why choose this: Guaranteed approval with deposit

Key Features:

  • No credit check at all
  • Security deposit: $200-$3,000
  • Reports to all 3 credit bureaus
  • Annual fee: $35

Requirements:

  • Just a security deposit
  • SSN or ITIN
  • US address

The catch: $35 annual fee and no rewards. But if you’ve been denied elsewhere, this guarantees approval.

Best for: People who absolutely cannot get approved anywhere else.

Apply for OpenSky Secured →

5. Deserve® EDU Mastercard for Students – International Students Welcome

Why choose this: Designed for international students, no SSN initially

Key Features:

  • No security deposit
  • No SSN required to apply (can provide later)
  • 1% cashback on all purchases
  • No annual fee
  • No foreign transaction fees

Requirements:

  • Enrolled in US college/university
  • US address
  • Verifiable income or financial support

Why it’s special: One of the few cards that doesn’t require SSN at application. Perfect for F-1 visa students.

Apply for Deserve EDU →

student credit cards

6. Chime Credit Builder Secured Visa® Credit Card – No Interest, No Fees

Why choose this: Unique design prevents debt

Key Features:

  • No interest charges (credit card linked to spending account)
  • No annual fee
  • No security deposit (uses your Chime balance)
  • Automatic on-time payments

How it works:

  1. Open free Chime checking account
  2. Move money to Credit Builder secured account
  3. Use card—purchases pull from secured balance
  4. Automatic payment every month

Why it’s different: You literally cannot go into debt. It’s a secured card that acts like a debit card but reports as credit.

Requirements:

  • Chime checking account
  • SSN or ITIN

Get Chime Credit Builder →

read our full Chime review

7. Bank of America® Customized Cash Rewards Secured Credit Card – Best for Existing Customers

Why choose this: Rewards on secured card

Key Features:

  • 3% cashback in category of choice
  • 2% at grocery stores and wholesale clubs
  • 1% on everything else
  • Security deposit: $200-$5,000
  • $0 annual fee

Requirements:

  • SSN or ITIN
  • Bank of America checking or savings account
  • Deposit equal to credit limit

Best if: You already bank with BofA. Easier approval as existing customer.

Apply with Bank of America →

Quick Comparison Table

Card Deposit Annual Fee Rewards SSN Required
Discover it Secured $200+ $0 2% gas/restaurants Yes
Capital One Platinum $49+ $0 None Yes
Petal 2 $0 $0 1-1.5% Yes (no ITIN)
OpenSky $200+ $35 None ITIN OK
Deserve EDU $0 $0 1% No (students)
Chime Credit Builder Uses balance $0 None Yes
BofA Secured $200+ $0 3% category Yes

How to Choose the Right Card

Choose Discover it Secured if:

  • You have $200 for deposit
  • Want to earn rewards while building credit
  • Plan to use card regularly

Choose Capital One Platinum if:

  • You can only afford $49-99 deposit
  • Want lowest entry barrier

Choose Petal 2 if:

  • You’ve been in US 3+ months with bank account
  • Want to avoid security deposit
  • Have steady income showing in bank account

Choose OpenSky if:

  • You’ve been denied everywhere
  • Don’t mind $35 annual fee
  • Want guaranteed approval

Choose Deserve EDU if:

  • You’re an international student
  • Don’t have SSN yet
  • Want rewards without deposit

How to Get Approved (Step-by-Step)

Before You Apply

1. Get your documents ready:

  • SSN or ITIN
  • Proof of address (utility bill, lease)
  • Proof of income (paystub, bank statements)
  • Valid ID

2. Open a US bank account if you haven’t:

  • Most cards require this
  • Shows financial stability
  • Needed for security deposit

3. Have your deposit ready:

  • For secured cards: $49-$200 minimum
  • Typically matches your credit limit
  • Refunded when you graduate to unsecured

Application Tips

✅ Apply for ONE card at a time

  • Multiple applications hurt your chances
  • Space applications 3-6 months apart

✅ List all income sources:

  • Employment income
  • Freelance work
  • Regular transfers from family
  • Government benefits

✅ Start with your deposit amount:

  • $200 is standard
  • Higher deposit = higher limit
  • Don’t overpay if $200 works

✅ Be truthful:

  • Lying on application is fraud
  • Banks verify information

After Approval

Month 1-6: Build Foundation

  • Use card for small purchases ($20-50/month)
  • Pay full balance before due date
  • Set up automatic payments
  • Keep utilization under 30%

Month 6-12: Show Consistency

  • Continue on-time payments
  • Gradually increase usage
  • Request credit limit increase if available
  • Monitor credit score (many cards offer free tracking)

Month 12+: Graduate

  • Some cards automatically review for graduation
  • Request upgrade if eligible
  • Get deposit back
  • Apply for second card to build credit faster

Building Credit: What Actually Matters

bank account for immigrants

Payment History (35% of score)

Most important factor. Pay on time, every time. Even one late payment hurts.

Best practice: Set up automatic payments for at least minimum payment.

Credit Utilization (30% of score)

Keep balances below 30% of limit. Ideally under 10%.

Example:

  • $500 limit → Keep balance under $150 (under $50 is best)
  • $1,000 limit → Keep balance under $300

Length of Credit History (15% of score)

Longer is better. Keep your first card open forever, even after you get better cards.

Credit Mix (10% of score)

Having different types of credit (cards, loans) helps. But don’t take on debt just for this.

New Credit (10% of score)

Too many applications hurt your score. Apply strategically.

Common Mistakes to Avoid

❌ Carrying a Balance “To Build Credit”

Myth: You need to carry a balance to build credit. Reality: Pay in full every month. Interest doesn’t build credit faster—it just costs you money.

❌ Applying for Too Many Cards

Each application is a “hard inquiry” that drops your score 5-10 points. Space applications 3-6 months apart.

❌ Closing Your First Card

Your first card establishes your credit history length. Keep it open even if you get better cards later.

❌ Maxing Out the Card

Using 100% of your limit hurts your credit score. Keep it under 30%.

❌ Missing Payments

One missed payment can drop your score 100+ points. Set up autopay.

Timeline: Zero to Good Credit

Months 1-3

  • Get secured card approved
  • Make small purchases
  • Pay on time
  • Credit score: Building (500-600)

Months 4-8

  • Continue perfect payment history
  • Credit score starts appearing
  • Some issuers review for graduation
  • Credit score: Fair (600-650)

Months 9-12

  • Possible graduation to unsecured card
  • Deposit refunded
  • Can apply for second card
  • Credit score: Good (650-700)

Year 2+

  • Qualify for better cards with rewards
  • Get approved for auto loans
  • Rent apartments without high deposits
  • Credit score: Good to Excellent (700+)

Frequently Asked Questions

Can I get a credit card without SSN?

Yes, but options are limited:

  • With ITIN: Discover, Capital One, OpenSky accept ITIN
  • Without SSN or ITIN: Deserve EDU for international students only
  • Best path: Get ITIN first (apply with IRS Form W-7)

What’s the difference between secured and unsecured cards?

Secured: You pay a refundable security deposit. Your credit limit equals your deposit. Reports to credit bureaus the same as unsecured cards.

Unsecured: No deposit required. Must qualify with credit history. Not available to people with no credit.

How long until I can get a regular credit card?

Typically 6-12 months with secured card usage. Some cards graduate automatically. Others require you to apply for upgrade.

Will applying hurt my credit?

Hard inquiry from application drops score 5-10 points temporarily. But having a credit card and using it responsibly increases score over time.

Can I use these cards to bring family to US?

Credit cards don’t directly affect immigration status. However, good credit helps you:

  • Rent apartments (needed for affidavit of support)
  • Show financial stability
  • Get loans for immigration expenses

What if I’m denied?

Call reconsideration line. Banks can override automated denials. If still denied:

  1. Try OpenSky (no credit check)
  2. Wait 3 months, reapply
  3. Build relationship with bank first (open checking account)

Next Steps: Start Building Credit Today

If you have $200 and want rewards: Apply for Discover it Secured. Best overall option for building credit while earning cashback.

If you have limited funds: Start with Capital One Platinum with $49 deposit. Lowest barrier to entry.

If you’ve been in US 3+ months: Try Petal 2 first—no deposit needed if approved.

If you’re a student: Deserve EDU lets you apply without SSN initially.

If denied everywhere: OpenSky guarantees approval with deposit. $35 annual fee is worth it to start building credit.

Remember: Your goal isn’t just to get a card—it’s to build excellent credit. Use your card responsibly, pay on time every month, and within a year you’ll have good credit that opens doors to better financial opportunities.

Ready to start building credit? Pick the card that fits your situation and apply today. The sooner you start, the sooner you’ll have the credit history needed for your financial goals in America.

Wise vs Remitly – Which Is Better for Sending Money?

bankseermain on December 27, 2025

Wise and Remitly are two of the most popular money transfer services – but which one actually saves you more money?

I’ve used both services and analyzed their fees, exchange rates, and features for dozens of corridors. Here’s the honest breakdown to help you choose.

Quick Answer: Which Is Better?

Choose Wise if: You prioritize the best exchange rate and don’t mind waiting 1-2 days

Choose Remitly if: You need faster delivery or are sending to countries Wise doesn’t cover well

Now let’s break down exactly why.

Wise vs Remitly: Head-to-Head Comparison

Feature Wise Remitly
Exchange Rate Mid-market (real rate) 0.5-2% markup
Fees $1-10 (varies by amount) $0-5
Speed 1-2 business days Minutes to 3 days
Delivery Options Bank deposit mainly Bank, cash pickup, mobile money
Best For Best overall value Speed + flexibility
Countries 80+ 100+
Trustpilot Rating 4.5/5 4.3/5

Exchange Rates: Wise Wins

This is where Wise has a clear advantage.

Wise uses the mid-market exchange rate – the same rate you see on Google or Reuters. They make money only from their transparent fee, not by marking up the exchange rate.

Learn more about Wise →

Remitly marks up the exchange rate by 0.5-2% depending on the corridor. While their upfront fee might be lower (sometimes $0), you’re paying through a worse exchange rate.

Check Remitly rates →

Real Example: Sending $500 to India

Wise Remitly
Fee $4.50 $0
Exchange Rate 83.50 (mid-market) 82.30 (1.4% markup)
Recipient Gets ₹41,502 ₹41,150
True Cost $4.50 ~$7 (hidden in rate)

Even with a higher visible fee, Wise delivers more rupees because of the better exchange rate.

sending money to India

Fees: It’s Complicated

Wise fees are percentage-based, typically 0.5-2% of your transfer amount. You always see the exact fee before sending.

Remitly fees range from $0 to $5 depending on:

  • Payment method (bank transfer vs card)
  • Delivery speed (economy vs express)
  • Promotions (first-time users often get $0 fees)

Winner: Remitly has lower visible fees, but Wise often costs less overall when you factor in exchange rates.

Speed: Remitly Wins

If you need money to arrive fast, Remitly has the edge.

Remitly options:

  • Express: Minutes to hours (higher fee)
  • Economy: 3-5 business days (lower fee)

Wise speed:

  • Usually 1-2 business days
  • No express option for most corridors

Winner: Remitly, especially for urgent transfers.

Delivery Options: Remitly Wins

Wise primarily offers bank deposits. Some countries have additional options, but it’s limited.

Remitly offers:

  • Bank deposit
  • Cash pickup
  • Mobile money (M-Pesa, GCash, etc.)
  • Home delivery (select countries)
  • Airtime top-up

Winner: Remitly, especially if your recipient doesn’t have a bank account.

Supported Countries

Wise: 80+ countries. Strong in Europe, North America, Australia, and major Asian economies. Weaker in Africa and some developing regions.

Remitly: 100+ countries. Excellent coverage in Africa, Latin America, Southeast Asia, and South Asia. Specifically built for remittance corridors.

Remitly is better for:

Wise is better for:

  • Europe (EUR transfers)
  • UK
  • Australia
  • Business payments
  • Multi-currency accounts

User Experience

Wise app:

  • Clean, modern interface
  • Multi-currency account feature
  • Wise debit card available
  • Better for frequent international users

Remitly app:

  • Simple, focused on sending money
  • Easy to track transfers
  • Good customer support
  • Better for occasional senders

Both apps are well-designed and easy to use.

Trust & Security

Both services are legitimate, licensed, and safe.

Wise:

  • Regulated by FCA (UK), FinCEN (US), ASIC (Australia)
  • 16+ million customers
  • Public company (listed on London Stock Exchange)

Remitly:

  • Regulated by FinCEN (US), FCA (UK)
  • 5+ million customers
  • Public company (NASDAQ: RELY)

Winner: Tie. Both are trustworthy.

When to Choose Wise

✅ You want the best exchange rate ✅ You’re sending to Europe, UK, or Australia ✅ You need a multi-currency account ✅ You want a debit card for international spending ✅ You’re making business payments ✅ You can wait 1-2 days for delivery ✅ You’re sending larger amounts ($1,000+)

Try Wise now →

When to Choose Remitly

✅ You need money to arrive quickly ✅ You’re sending to Africa, Latin America, or Southeast Asia ✅ Your recipient needs cash pickup ✅ Your recipient uses mobile money ✅ You’re a first-time sender (great promotions) ✅ You’re sending smaller amounts ✅ You value delivery flexibility over rates

Get started with Remitly →

My Recommendation

For most people sending money home to family, I recommend checking both.

Rates change constantly. What’s cheaper for Nigeria might not be cheaper for India. What’s cheaper for $200 might not be cheaper for $2,000.

Use our comparison tool to check both Wise and Remitly (plus 16 other providers) in seconds. You’ll see exactly how much your recipient will get with each option.

FAQs

Is Wise cheaper than Remitly?

Usually yes, especially for larger amounts. Wise’s mid-market exchange rate typically beats Remitly’s marked-up rate. However, Remitly occasionally wins on specific corridors or with promotional rates.

Is Remitly safe to use?

Yes. Remitly is a publicly-traded company regulated by FinCEN in the US and FCA in the UK. They’ve processed billions of dollars in transfers.

Can I use Wise for instant transfers?

Wise doesn’t offer instant transfers for most corridors. If you need money delivered in minutes, Remitly is a better choice.

Does Remitly use the real exchange rate?

No. Remitly marks up the exchange rate by 0.5-2%. They may advertise “great rates” but they’re not using the mid-market rate like Wise does.

Which has better customer support?

Both have good customer support. Remitly has a slight edge with phone support availability, while Wise offers excellent in-app chat support.

Compare Both Right Now

Stop guessing which is cheaper. Check live rates from Wise, Remitly, and 16+ other providers with our free comparison tool.

Compare Transfer Rates Now →

This comparison is based on research and personal experience. Rates and fees change frequently – always verify current rates before sending. BankSeer may earn commissions from some providers, but this doesn’t influence our comparisons.