When your credit score is low, you face a fundamental choice: put down a deposit to get a secured card, or find an unsecured card designed for bad credit. Both paths can lead to a better score. The right one depends on where you are starting from and what you can afford. If you want a quick starting point, the Discover it Secured is one of the best secured options available, and the Capital One Platinum is one of the stronger unsecured choices for fair credit. This article explains the difference and helps you decide which fits your situation.
What Is a Secured Credit Card?
A secured credit card requires you to make a cash deposit before you can use the card. That deposit typically equals your credit limit. If you deposit $200, your limit is $200. If you deposit $500, your limit is $500.
The deposit is held by the issuer as collateral. It is not used to pay your bill — you still have to make monthly payments. The deposit sits in a separate account and is returned to you when you close the account in good standing or when the issuer graduates you to an unsecured card.
Because the issuer has your deposit as security, the approval standards are lower. People with very low scores, recent late payments, or even prior bankruptcies can often qualify. The issuer’s risk is covered by the deposit.
Secured cards report to credit bureaus just like regular credit cards. Used responsibly, they build credit at the same rate as any other card.
What Is an Unsecured Credit Card for Bad Credit?
An unsecured card has no deposit requirement. You apply, and if approved, you get a credit line without putting any money down. For people with bad credit, these cards often come with lower credit limits, higher APRs, and sometimes annual fees to compensate the issuer for the increased risk.
The Capital One Platinum is an example of an unsecured card that targets people with fair credit — typically scores in the 580 to 670 range. It carries no annual fee and an automatic credit line review within six months (Terms verified 2026-09-17). It does come with a 28.99% variable APR (Terms verified 2026-09-17), so carrying a balance is expensive.
Not every unsecured card for bad credit is worth considering. Some charge high annual fees, processing fees, or activation fees that consume most of the credit limit. These are covered in more detail in our guide to no-credit-check cards and warning signs.
Secured vs Unsecured: Side-by-Side Comparison
| Feature | Secured Card | Unsecured Bad Credit Card |
|---|---|---|
| Deposit required | Yes, typically $200+ | No |
| Approval difficulty | Low — deposit offsets risk | Moderate — requires some credit history |
| Annual fee | Often $0 (Discover) or low | Varies — can be high on predatory cards |
| APR | Varies, often moderate | Often very high |
| Credit limit | Equal to deposit | Set by issuer, often low initially |
| Graduation path | Yes — many issuers upgrade to unsecured | N/A — already unsecured |
| Deposit returned | Yes, when graduated or closed | N/A |
| Best for | Starting out, rebuilding after bankruptcy | Score recovering, cannot afford deposit |
When to Choose a Secured Card
A secured card is almost always the better starting point if any of the following describe you:
- You are just starting to build credit. No credit history is treated as a risk by most unsecured card issuers. A secured card skips that hurdle.
- Your score is below 580. Very few legitimate unsecured cards approve scores below 580. Most that do charge predatory fees. A secured card is the cleaner path.
- You have a recent bankruptcy or collection. Issuers see recent derogatory marks as a major red flag. Secured cards, especially those with no credit check like OpenSky or Chime, do not require good recent history.
- You want to minimize ongoing fees. The best secured cards carry no annual fee. The Discover it Secured has no annual fee, earns cashback, and has a clear graduation review at 7 months (Terms verified 2026-09-17).
The main cost with a secured card is the tied-up deposit. If $200 is a significant strain, consider the Chime Credit Builder, which has no minimum deposit requirement.
When an Unsecured Card Might Make Sense
There are situations where an unsecured card is the right move:
- Your score is in the 580 to 650 range. At this level, you may qualify for the Capital One Platinum or similar products without tying up a deposit.
- You cannot afford the deposit. If you genuinely do not have $200 available to lock up, an unsecured card or the Chime Credit Builder (no deposit required) are your options.
- You already have a secured card and want to expand. Adding an unsecured card creates a more diverse credit profile, which can accelerate score growth.
Be cautious with unsecured cards marketed heavily toward very bad credit. Some carry annual fees of $75 to $99 or processing fees charged before you even receive the card. Always read the full terms before applying.
Check your approval odds for the Capital One Platinum — no annual fee, no hard inquiry to check.
Capital One Platinum as an Unsecured Example
The Capital One Platinum is one of the few legitimate unsecured cards for people working on their credit. Key details:
- Annual fee: $0 (Terms verified 2026-09-17)
- APR: 28.99% variable (Terms verified 2026-09-17)
- Targets fair credit — generally scores in the 580+ range
- Automatic credit line review within 6 months (Terms verified 2026-09-17)
- Reports to all three bureaus
The automatic review is valuable because a credit limit increase can reduce your utilization ratio, which is the second most important factor in your credit score. Lower utilization means a higher score, even if your payment history and account age stay the same.
Discover it Secured as a Secured Example
The Discover it Secured is widely considered the best secured card for credit building because it combines a clear graduation path with rewards:
- Annual fee: $0 (Terms verified 2026-09-17)
- Minimum deposit: $200 (Terms verified 2026-09-17)
- Credit limit: Equal to deposit, up to $3,000 (Terms verified 2026-09-17)
- Cashback: Unlimited match on all cashback earned in year one (Terms verified 2026-09-17)
- Graduation review: 7 months (Terms verified 2026-09-17)
The graduation process means Discover reviews your account at 7 months. If your payment history is clean and your income supports it, they upgrade you to a regular Discover card and return your deposit. That is a clear, issuer-defined path from secured to unsecured.
Apply for the Discover it Secured card and start building credit with cashback rewards.
The Path from Secured to Unsecured
Getting a secured card is not a permanent status. Most people use a secured card for 12 to 24 months and then transition to a standard credit card. Here is what that timeline typically looks like:
- Months 1–6: Use the secured card for small regular purchases. Pay in full every month. Keep utilization below 30% of your limit.
- Month 7+: With issuers like Discover, your account is reviewed for graduation. With Capital One, you may receive a credit limit increase that opens the door to product changes.
- Months 12–24: Most cardholders who paid on time and kept utilization low see score increases of 50 to 100 points. This range makes a wide range of unsecured cards accessible.
- Deposit returned: When you graduate or close the account in good standing, the deposit is returned. With the Discover it Secured, most cardholders who started with a $200 deposit get it back within 12 to 18 months.
If you are also carrying debt from other accounts, check our debt consolidation guide for bad credit — reducing your overall debt load is one of the fastest ways to improve your score alongside credit card use.
Frequently Asked Questions
Can I get a secured card if I have a bankruptcy on my record?
Yes. Secured cards are specifically designed for people who have had serious credit events. Cards with no credit check, like the OpenSky Secured Visa and Chime Credit Builder, do not pull your history at all. Even Discover it Secured approves applicants who have had a prior bankruptcy, as long as it has been discharged.
Does applying for a secured card hurt my credit score?
Most secured card applications involve a hard inquiry, which may reduce your score by 5 to 10 points temporarily. The Chime Credit Builder and OpenSky Secured Visa do not require a hard inquiry. If you are concerned about the impact, choose one of those options. See our article on no-credit-check cards for more detail.
What is the fastest way to go from a secured card to an unsecured one?
Pay your full balance on time every month. Keep your balance below 30% of your credit limit. Do not open multiple new accounts at the same time. With the Discover it Secured, the graduation review happens automatically at 7 months. For other issuers, you can request an upgrade or product change after 12 months of clean payment history.
The Bottom Line
If your score is below 580 or you have limited credit history, a secured card is almost always the better starting point. The deposit requirement is the only real downside, and the best secured cards charge no annual fee and offer clear graduation paths. If your score is already in the 580 to 650 range, an unsecured card like the Capital One Platinum may be worth trying — just avoid any card that charges upfront fees.
Apply for Discover it Secured if you want cashback and a clear graduation path. Apply for Capital One Platinum if your score is closer to fair credit and you want to skip the deposit. Either way, consistent on-time payments are the fastest path to a better credit profile. Also explore our credit repair guide for additional strategies to boost your score.