Below are some critical statistics that highlight different facets of the personal loan market.

• Total outstanding personal loan debt: $276 billion
• YoY change: 9.96% increase
• Average debt per borrower: $11,699
• Delinquency rate (60+ days past-due): 3.99%

1. Personal Loan Interest Rates Over Time
2. Total Personal Loan Debt Over Time
3. Average Personal Loan Debt by State
4. Average Personal Loan Debt by Generation
5. Average Personal Loan Debt per Borrower
6. Number of Consumers with Personal Loans
7. Personal Loan Delinquency Rate
8. Reasons for Getting Personal Loans

Interest rates for 24-month personal loans decreased by 0.70% from Q1 2023 to Q1 2026.

Source: Federal Reserve, 2025

The interest rates credit unions charge on 36-month personal loans increased by 15.03% in 2025 compared to 2015, while bank interest rates increased by 17.53%.

Learn more about average personal loan interest rates.

Source: National credit Union Administration, 2025

Total outstanding personal loan debt increased by 9.96% in Q4 2025, compared to the same quarter the previous year.

Source: Transunion, 2025

Washington state recorded the highest average personal loan balance in 2025, nearly twice as much as the average for people in Washington, D.C., who owed the least.

Source: Experian, September 2025

While Gen Z saw the highest percentage increase in personal loan debt in 2023 compared to the previous year, baby boomers still held the highest average personal loan balance, owing 2.6 times more than Gen Zers.

Source: Experian, 2024 (data for Q3 2023)

The average debt per borrower has been on a steady incline since 2018, peaking at $11,829 in Q1 2024. This trend indicates that individuals are either borrowing more frequently or opting for larger loan amounts over the years.

Source: Transunion, 2025

The number of consumers with personal loans increased by 25.12% compared from Q4 2018 to Q4 2025.

Source: Transunion, 2025

The delinquency rate reached its highest point since 2018 in Q4 2022, at 4.14%, which is 0.15 percentage points higher than the 3.99% delinquency rate seen in Q4 2025.

Note: Data reflects the percentage of accounts past-due by 60+ days.

Source: Transunion, 2025

The most common uses for personal loans are debt consolidation and making major purchases.

Source: Experian, 2026 

Key Credit Card Debt Statistics

• Total Debt: $1.39 trillion
• Household Average: $11,507
• Household Record: $13,103 (Q4 2007)
• Average APR on Debt: 22.30%
• Delinquency Rate: 3.03% of accounts are 30+ days delinquent
• Charge-Off Rate: 4.03% of accounts are charged-off
• End-of-Year Projection: $100 billion increase in total debt

1. Total Credit Card Debt Over Time
2. Credit Card Debt by Household
3. Credit Card Debt by State
4. Credit Card Debt by Age
5. Interest Rates on Credit Card Debt
6. Number of Accounts With Credit Card Debt
7. Charge-Off & Delinquency Rates
8. Credit Card Debt Survey Stats

Total credit card debt hit a record in absolute terms during Q4 2025.

When you adjust for inflation, it’s clear the average household’s balance is not a record.

Even in states with relatively little credit card debt, it will take 11+ months to pay off the median credit card balance, assuming an average APR and monthly payment amount.

See the complete rankings for the states with the most and least credit card debt.

People ages 30-59 have an average of 132.45% more credit card debt than their older and younger counterparts. Below, you can see the latest averages by age group.

Consumers with credit card debt are now paying interest at an annual rate in excess of 20%. As a result, balance transfer credit card offers with 0% introductory APRs are more valuable than ever.

See data for previous years’ credit card interest rates.

There are 441 million credit card accounts, of which 191 million accounts (43.4%) had a revolving balance, carried from month to month, during Q2 2023. This percentage has not changed much in recent years.

The rates of consumers who are 30+ days late on their credit card bill or who’ve charged-off altogether are trending upward, indicating that minimum payments are becoming harder to make.

See data for previous years’ delinquency and charge-off rates.

WalletHub conducted a nationally representative survey to evaluate how people are dealing with credit card debt. You can find some key statistics below.

• Nearly half of Americans are concerned that tariffs will make their credit card debt worse.
• Nearly 1 in 3 people say they will have more credit card debt by the end of 2025.
• More than 2 in 5 Americans are still paying off credit card debt from last summer.
• 21% of people are very stressed about their credit card debt.
• 80% of Americans say they would not be comfortable with giving AI access to their credit card account.
• 83% of Americans think the government should put a cap on credit card interest rates.
• Nearly 3 in 4 people say the country’s debt is in worse shape than their personal debt.

Check out the full survey results.

Back To Top

Eco-friendliness and personal finance are related. Our environmental and financial needs are the same in many areas: providing ourselves with sustainable, clean drinking water and food, for example. We also spend money through our own taxes in support of environmental security.

Last year, the U.S. experienced 27 weather and climate disasters that did $1 billion or more in damage each, with the total damage from all events adding up to $182.7 billion. While some disasters are unavoidable, others are exacerbated by humans.

We should all try to do our part to save the world for future generations. In order to highlight the greenest states and call out those doing a poor job of caring for the environment, WalletHub compared each of the 50 states based on 28 key metrics.

Chip Lupo, WalletHub Analyst

1. Main Findings
2. In-Depth Look at the Greenest States
3. Blue States vs. Red States
4. Ask the Experts
5. Methodology

Note: *No. 1 = Greenest With the exception of “Total Score,” all of the columns in the table above depict the relative rank of that state, where a rank of 1 represents the best conditions for that metric category.

[edu-info-graphic metrics="[edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170615/metric-1.png' header='Air Quality' left='Highest | T-1. Wyoming | T-1. Hawaii | 3. New Hampshire | 4. South Dakota | T-5. Alaska | T-5. Maine' footer='Best State vs. Worst State: 3x Difference | Wyoming vs. California' right='Lowest | 46. Ohio | T-47. Illinois | T-47. Michigan | T-47. Pennsylvania | T-47. California'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170616/metric-2.png' header='Water Quality' left='Highest | 1. Hawaii | 2. Delaware | 3. South Dakota | 4. North Dakota | 5. Ohio' right='Lowest | 46. New Mexico | T-47. Louisiana | T-47. Nevada | T-47. Arkansas | T-47. Rhode Island'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170617/metric-3.png' header='Soil Quality' left='Highest | T-1. Hawaii | T-1. Michigan | T-1. Minnesota | T-1. Wisconsin | T-5. New York | T-5. South Dakota' footer='Best State vs. Worst State: 27x Difference | Hawaii vs. New Mexico' right='Lowest | T-46. Alaska | T-46. Nevada | 48. Wyoming | 49. Rhode Island | 50. New Mexico'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170618/metric-4.png' header='LEED-Certified Buildings per Capita' left='Most | 1. Maryland | 2. Colorado | 3. Massachusetts | 4. Virginia | 5. Washington' footer='Best State vs. Worst State: 9x Difference | Maryland vs. West Virginia' right='Fewest | 46. Alabama | 47. Mississippi | 48. Oklahoma | 49. Louisiana | 50. West Virginia'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170619/metric-5.png' header='% of Renewable Energy Consumption' left='Highest | T-1. South Dakota | T-1. Iowa | T-1. Maine | T-1. Oregon | T-1. Washington' footer='Best State vs. Worst State: 27x Difference | South Dakota vs. Alaska' right='Lowest | 46. New Jersey | 47. West Virginia | 48. Louisiana | 49. Delaware | 50. Alaska'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170620/metric-6.png' header='Energy Consumption per Capita' left='Lowest | 1. Rhode Island | 2. California | 3. New York | 4. Vermont | 5. Massachusetts' footer='Best State vs. Worst State: 6x Difference | Rhode Island vs. Alaska' right='Highest | 46. West Virginia | T-47. Wyoming | T-47. North Dakota | T-47. Louisiana | T-47. Alaska'] || [edu-info-metric img='https://cdn.wallethub.com/wallethub/posts/170621/metric-7.png' header='Gasoline Consumption (in Gallons)' left='Lowest | 1. New York | 2. Hawaii | 3. Illinois | 4. Rhode Island | 5. California' footer='Best State vs. Worst State: 2x Difference | New York vs. Alabama' right='Highest | 46. North Dakota | 47. South Carolina | 48. Wyoming | 49. Mississippi | 50. Alabama']"]

Vermont is the greenest state in America, in part because it has the most organic-farm acreage per capita. Organic farms are ones that don’t hurt the environment through use of things like pesticides, petroleum-based fertilizers, herbicides and growth hormones, among others.

In addition, Vermont has the lowest carbon dioxide emissions per capita and the third-lowest methane emissions per capita. These are two of the main greenhouse gasses that green policies seek to reduce.

The Green Mountain State is also paving the way for a future where more people drive clean vehicles, as it has the highest number of alternative fuel stations per capita. When it comes to actual adoption of alternative fuel vehicles, it ranks 14th in the country.

Hawaii is the second-greenest state and it has the second-least air pollution, according to the United Health Foundation. It also has the eighth-lowest overall energy consumption per capita, and the second-lowest gasoline consumption. The state’s robust public transportation helps reduce gas consumption, too. Plus, the state’s residential solar power installations have the highest capacity per capita compared to other states, contributing to its energy efficiency.

In addition, Hawaii has the highest recycling participation rate. The Aloha State also boasts the lowest drinking water violations in the country, highlighting its dedication to environmental preservation and public health.

California is the third-greenest state, having some of the lowest overall energy consumption and the fifth-lowest gasoline consumption per capita. One of the reasons for the low gas consumption is the fact that nearly 33% of California’s population uses green transportation (public transportation, carpools, biking or walking) to get to and from work, the ninth-highest percentage in the country.

The Golden State ranks among the top states when it comes to reducing emissions, too, having some of the lowest carbon dioxide, methane and nitrous oxide emissions per capita. Another major hallmark of its environmental leadership is energy efficiency, as California has the highest energy efficiency score in the country. This strong performance helps reduce overall energy consumption, lower utility costs for residents, and decrease greenhouse gas emissions, further strengthening the state’s commitment to sustainability.

For more insight into eco-friendliness at the household, government and global levels, we asked the following questions to a panel of environmental and economic experts. Click on the experts’ profiles to read their bios and thoughts on the following key questions:

1. What policies can state and local authorities pursue to make their communities more environmentally friendly?
2. Is there an inherent tradeoff between protecting the environment and promoting economic growth?
3. Research indicates that the current decade will be crucial for slowing heat-trapping emissions. In your opinion, how will the policies proposed by the Trump administration fare in combating climate change?
4. What is the single most impactful thing an individual can do to reduce their effect on the environment?
5. How much is the U.S. affected by climate change?

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• Andrew Burnstine Ph.D., Associate Professor, College of Business and Management - Lynn University
• Scott Thorne Ph.D., Instructor, Department of Marketing - Southeast Missouri State University
• Anne Drougas Ph.D., College of Business, Information Studies, and Technology, Associate Dean & Professor of Finance & Business Analytics, Brennan School of Business – Dominican University
• Robert B. Richardson Ph.D. – Professor Emeritus, College of Agriculture & Natural Resources - Michigan State University
• Shoshannah Lenski Associate Director, Center for Sustainable Systems, School for Environment and Sustainability - University of Michigan
• John Clinton Ph.D. – Associate Professor/Founding Chair, Environmental Policy; former interim Dean, R.J. Milano Graduate School of Management, Policy, and Environment, The New School, New York City

In order to determine the greenest states, WalletHub compared the 50 states across three key dimensions: 1) Environmental Quality, 2) Eco-Friendly Behaviors and 3) Climate-Change Contributions.

We evaluated those dimensions using 28 relevant metrics, which are listed below with their corresponding weights. Each metric was graded on a 100-point scale, with a score of 100 representing the highest level of eco-friendliness.

We then determined each state’s weighted average across all metrics to calculate its overall score and used the resulting scores to rank-order the states.

• Air Quality: Full Weight (~8.75 Points) Note: This metric measures the average exposure of the general public to particulate matter of 2.5 microns (PM2.5) or less in size.
• Water Quality: Full Weight (~8.75 Points)
• Soil Quality: Full Weight (~8.75 Points) Note: This metric measures the difference between the median soil pH level and the optimal soil pH level.
• Energy-Efficiency Score: Full Weight (~8.75 Points)

• Green Buildings per Capita: Full Weight (~1.35 Points) Note: This metric measures the number of LEED-certified buildings per capita.
• Total Capacity of Solar PV Systems Installed per Household: Full Weight (~1.35 Points) Note: “PV” is an acronym for photovoltaic.
• Share of Renewable Energy Consumption: Triple Weight (~4.04 Points)
• Energy Consumption per Capita: Full Weight (~1.35 Points)
• Gasoline Consumption (in Gallons) per Capita: Full Weight (~1.35 Points)
• Daily Water Consumption per Capita: Full Weight (~1.35 Points)
• Share of “Smart” Electricity Meters: Full Weight (~1.35 Points) Note: Smart meters are energy meters with enhanced, two-way communication technology that provide information to energy providers and consumers about prices, usage patterns, and inefficiencies. The deployment of smart meters is an excellent example of better technology and better data being used to conserve energy, save money, and grow the economy. The total number of meters with advanced metering infrastructure (i.e., smart meters) across residential, commercial, and industrial sectors is divided by the total number of electricity meters across residential, commercial, and industrial sectors.
• Alternative-Fuel Vehicles per Capita: Double Weight (~2.69 Points) Note: Energy Information Administration (EIA) provides data for the number of alternative-fuel vehicles for these four fleets only: federal government agencies, state government agencies, transit agencies and fuel providers.
• Alternative-Fuel Stations per Capita: Double Weight (~2.69 Points)
• Green Transportation: Full Weight (~1.35 Points) Note: This metric measures the percentage of the population who walk, bike, carpool, take public transportation or work from home.
• Average Commute Time by Car: Full Weight (~1.35 Points)
• Certified Organic Farms per Capita: Triple Weight (~4.04 Points)
• Corporate Clean Energy Procurement Index Score: Full Weight (~1.35 Points) Note: The index ranks all 50 U.S. states based upon the ease with which companies can procure RE (renewable energy) for their operations located within each state. The index consists of 15 indicators, broken into three categories:
  • UTILITY PURCHASING OPTIONS, which ranks states based upon the opportunities available to procure RE through utilities in the state, as well as looking at electric utility market factors;
  • THIRD-PARTY PURCHASING OPTIONS, where states are ranked by how readily companies can procure RE through third-party (i.e., non-utility) developers and other organizations;
  • ONSITE/DIRECT DEPLOYMENT OPTIONS, which analyzes states based upon how effectively companies can deploy RE onsite (such as rooftop solar panels) or through other direct purchasing options.
• State Renewable Portfolio Standards: Full Weight (~1.35 Points) Note: This binary metric considers the presence or absence of renewable portfolio standards in the states. Renewable Portfolio Standards (RPS) requires that a specified percentage of the electricity that utilities sell comes from renewable resources.
• States with Electronic Waste Recycling Programs: Full Weight (~1.35 Points) Note: This binary metric measures the presence or absence of e-waste recycling programs in the states.
• States with Multifamily Recycling Policies: Full Weight (~1.35 Points) Note: This metric measures the presence or absence of multifamily recycling policies in the states.
• Water Efficiency and Sustainability Score: Full Weight (~1.35 Points) Note: This composed metric is based on data from Alliance for Water Efficiency’s “2022 State Policy Scorecard for Water Efficiency and Sustainability” report.
• Recycling Access: Full Weight (~1.35 Points) Note: Access to recycling means having the ability to easily recycle all your recyclable items both because you have an active and convenient recycling service and your local program accepts all recyclable materials.
• Recycling Engagement: Full Weight (~1.35 Points) Note: Program participation rates among the households with access to recycling.
• Residential Recycling Rates: Full Weight (~1.35 Points) Note: This metric refers to all recyclables and it also includes material captured through state deposit return systems (also known as “bottle bills”).

• Carbon-Dioxide Emissions per Capita: Full Weight (~7.50 Points)
• Methane Emissions per Capita: Full Weight (~7.50 Points)
• Nitrous-Oxide Emissions per Capita: Full Weight (~7.50 Points)
• Fluorinated Greenhouse-Gas Emissions per Capita: Full Weight (~7.50 Points)

  Sources: Data used to create this ranking were collected as of March 11, 2026 from the U.S. Census Bureau, United Health Foundation, International Plant Nutrition Institute, American Council for an Energy-Efficient Economy, Green Building Council, Department of Energy, United States Department of Agriculture, Information Technology Industry Council, National Conference of State Legislatures, Environmental Finance Blog, Alliance for Water Efficiency, Environmental Protection Agency, Energy Information Administration, The Recycling Partnership and U.S. Geological Survey.

• YouTube - National (for web embedding)
• YouTube - Vermont (for web embedding)
• Raw video files (for editing into clips)

Secured credit cards are the easiest type of credit card to get, and they usually have low annual fees. A secured credit card can also help you build or rebuild your credit, just like a “normal credit card.”

Compare Secured Credit Cards

• A refundable security deposit is required to open the account.
• A secured card’s credit limit usually equals the amount of the cardholder’s security deposit, so you essentially borrow against your own money.
• Secured credit cards offer the highest approval odds of any credit cards, and even people with very bad credit can get them.
• Most secured credit cards report account information to the credit bureaus on a monthly basis, giving you the chance to improve your credit score if you make on-time payments.
• Secured cards work the same way as a regular credit card, except for the security deposit.

1. How Does a Secured Credit Card Work?
2. Secured vs. Unsecured Credit Cards
3. 5 Myths About How Secured Credit Cards Work
4. Best Secured Credit Card Examples
5. How to Get a Secured Credit Card
6. Benefits of a Secured Credit Card
7. Secured Credit Card Alternatives
8. Bottom Line
9. Secured Credit Card FAQ

Aside from the security deposit, a secured credit card works just like any other credit card. You have to make monthly payments to keep your account in good standing and improve your credit score, and you can avoid interest charges by paying your full balance by the due date. Some secured cards even reward you for making purchases.

To give you a better idea of how secured credit cards work, we’ve laid out the steps involved with getting and using one below.

1. You apply for the card. You may be able to apply online, by phone, by mail or at one of the issuer’s branches. Applying online is the easiest, and most people stand a decent chance of qualifying, as long as they can afford the security deposit and payments on the card. You can learn more about how to get a secured card on WalletHub.

2. You place a refundable security deposit using a bank transfer. A debit card or check could be an option, too, depending on the card. Some secured cards require you to place a deposit when you apply, and others require it after you’re approved. The minimum deposit for most secured cards is $200 or $300.

3. The amount of your deposit becomes your spending limit. This prevents you from spending more than you can afford to repay, which benefits both you and the card issuer in the long run. Many secured credit card issuers allow you to make a deposit larger than the minimum amount and/or add to your deposit over time in order to increase your spending limit.

4. The credit card company holds your deposit as collateral. The funds are usually kept in a bank account that does not gain interest.

5. Purchases and payments are the same as with any other credit card. You can spend up to your credit limit. You’ll have to pay at least the minimum required payment by the due date each month. Any balance you carry from month to month will accrue interest, and it’s usually a bad idea to carry a balance on a secured card because the APRs tend to be fairly high (average of 21.76%) and you’re borrowing against your own deposit.

6. You get the deposit back when you close your account. You’ll have to bring your account balance to zero first. But after you do (or the issuer subtracts what you owe), you’ll get a check or bank transfer returning your deposit money. If you default on your payments, though, the issuer will keep your deposit to recoup their money.

7. You can graduate to an unsecured card. After using a secured credit card responsibly for at least 12 months, you should be able to graduate to an unsecured credit card. Your secured card’s issuer might even offer to convert your account to unsecured by giving back your security deposit. If your card doesn’t charge an annual fee, you should definitely consider keeping it open. This would help make your credit history appear longer, benefitting your credit score.

You can track your progress for free on WalletHub. You will be able to see your latest credit score and report, updated daily. You’ll also receive personalized credit-improvement advice to help you graduate to an unsecured card sooner.

Get Your Personalized Credit Advice – 100% Free

For all you visual learners out there, we put together a step-by-step illustration of a secured credit card’s lifecycle. This will help you understand what to expect from start to finish.

Secured and unsecured credit cards are the two main types of credit cards. The difference between secured and unsecured credit cards is that secured cards require cardholders to place a refundable security deposit when opening an account. A secured card’s spending limit usually matches the amount of the deposit, preventing cardholders from spending more than they can afford to pay back and making the cards easier to get approved for.

In contrast, an unsecured card does not require a deposit. Your credit limit is based on factors like your credit score and income. In addition, while secured cards are targeted toward people with bad credit or no credit, there are unsecured credit card options for people of all credit levels, from bad to excellent.

Aside from the deposit required by secured cards, there is no fundamental difference between secured and unsecured credit cards. For example, all major secured credit cards report usage information to the major credit bureaus and can therefore help you build credit. In fact, secured cards are indistinguishable from unsecured cards on your credit reports.

You can learn more about the similarities and differences between secured and unsecured credit cards here on WalletHub.

Despite how simple secured credit cards truly are, people still have a lot of misconceptions about how they work, who should use them and more. Let’s put some of the biggest ones to rest so you don’t get tripped up on your way to top WalletFitness.

1. Secured Cards Are a Last Resort – FALSE The Truth: A secured credit card should actually be your first choice if you have bad credit and don’t need an emergency loan. Secured cards have higher approval odds than unsecured cards for bad credit. A secured credit card also is a good way to start building credit from scratch, especially if you don’t get approved for the first credit card that you apply for.

2. Secured Cards Are Expensive – FALSE The Truth: Secured credit cards are actually far less expensive than unsecured cards for bad credit. Instead of high monthly, annual and application-processing fees, secured cards require you to put down a refundable deposit, which you’ll ultimately get back. Many secured cards don’t charge annual fees as a result.

3. Secured Cards Don't Help to Build Credit – FALSE The Truth: Secured credit cards are indistinguishable from unsecured cards on credit reports. There’s no difference in their credit-building capabilities, as they report to the credit bureaus on a monthly basis. The actual card you carry also won’t have the word “secured” on it.

4. Secured Cards Are Good for Borrowing – FALSE The Truth: Since a secured card’s spending limit typically equals the amount of the deposit you’re required to place, you won’t be able to use such a card to finance purchases that you can’t fully afford without the card. That’s no big deal if credit improvement is your top priority and you plan to pay your bill in full every month, though.

5. Secured Cards Offer Guaranteed Approval – FALSE The Truth: No credit card offers 100% guaranteed approval, but secured credit cards come closest. Some don’t even require a credit check. You may simply need a U.S. mailing address and income that exceeds your monthly expenses. That’s why secured cards are the easiest credit cards to get. Each issuer has its own requirements and approval is not guaranteed in any case.

Opinions and ratings are our own. This report is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page.

You won’t truly understand secured credit cards until you get into the nitty-gritty with some actual offers. So WalletHub’s editors compared dozens of secured cards and picked some of the best, most popular offers for you to consider. Each of their selections, which you can check out below, is a great example of what you should look for in a secured credit card.

U.S. Bank Altitude® Go Visa® Secured Card	Capital One Quicksilver Secured Cash Rewards Credit Card	U.S. Bank Cash+® Visa® Secured Card	opensky® Plus Secured Visa® Credit Card
4.5WalletHub Rating WalletHub Rating 4.5 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Improve Credit by Paying in Full Each Month." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 2.9 Market Comparison 4.8 fees: 5.0 rewards: 5.0 cost: 5.0 Other Features: 3.5	4.7WalletHub Rating WalletHub Rating 4.7 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Improve Credit by Paying in Full Each Month." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 5.0 User Reviews 3.5 Market Comparison 4.8 fees: 5.0 rewards: 5.0 cost: 5.0 Other Features: 3.0	4.4WalletHub Rating WalletHub Rating 4.4 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Rebuild Damaged Credit by Paying in Full Each Month." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. User Reviews 3.7 Market Comparison 4.5 fees: 5.0 rewards: 5.0 cost: 4.5 Other Features: 3.3	3.9WalletHub Rating WalletHub Rating 3.9 This card has been scored using WalletHub’s proprietary credit card rating system. We evaluated this card for various cardholder needs and picked the rating for the need with the highest score, which is "Rebuild Damaged Credit by Paying in Full Each Month." A score of 5 is the best a card can receive, and the rating for the card may vary on different pages where it is compared to other cards for different needs. Editor’s Rating 4.5 User Reviews 3.8 Market Comparison 3.9 fees: 5.0 rewards: 0.0 cost: 3.3 Other Features: 4.4
(7)	(312)	(10)	(207)
annual fee$0	annual fee$0	annual fee$0	annual fee$0
rewards rate Earn 4 points per $1 spent on dining, including takeout and restaurant on your first $2,000 each quarter and 1 point thereafter. Earn 2 points per $1 spent at grocery stores and gas stations/EV charging stations (discount stores/supercenters and wholesale clubs excluded). Earn 2 points per $1 spent on streaming services. Earn 1 point per $1 spent on all other eligible purchases Redeem your points for deposit to an eligible U.S. Bank account, merchandise, charity, gift cards, travel and more. 1 - 4 points / $1	rewards rate No annual or hidden fees, and you can earn unlimited 1.5% cash back on every purchase, every day. See if you're approved in seconds Earn unlimited 5% cash back on hotels, vacation rentals and rental cars booked through Capital One Travel 1.5 - 5% Cash Back	rewards rate 5% cash back on your first $2,000 in combined eligible net purchases each quarter on two categories you choose, and 5% back on prepaid air, hotel and car reservations booked in the Rewards Travel Center. 2% cash back on your choice of one everyday category, like gas stations, EV charging stations, restaurants or grocery stores (discount stores/supercenters and wholesale clubs excluded). 1% cash back on all other eligible net purchases. 1 - 5% Cash Back	rewards rate N/A
bonus offer N/A	bonus offer N/A	bonus offer N/A	bonus offer N/A
Purchase Intro APRN/A	Purchase Intro APRN/A	Purchase Intro APRN/A	Purchase Intro APRN/A
transfer intro aprN/A	transfer intro aprN/A	transfer intro aprN/A	transfer intro aprN/A
Regular APR28.49% (V)	Regular APR28.99% (V)	Regular APR28.49% (V)	Regular APR28.24% (V)
Learn More SponsoredApply Now  Learn More	SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More	Learn More SponsoredApply Now  Learn More	SponsoredApply Now Rates & Fees SponsoredApply Now Rates & Fees  Learn More

Secured credit cards with no annual fee aren’t always available. But if you can find one, getting it and paying your bill in full and on time every month will leave you with a better credit score and more money. You can learn more about the best secured credit cards right here on WalletHub.

1. Compare secured credit cards to find the right card for you. WalletHub’s editors’ picks for the best secured credit cards are a great starting point. Aim for a card with a $0 annual fee and rewards that suit your spending habits.

2. Fill out an application. You need to be at least 18 years old, and you need to have a Social Security number, an ITIN or a passport, along with a U.S. address that’s not a P.O. Box. You’ll also need to have a steady income – enough to make the deposit and payments on the card.

3. Prepare your security deposit. When you apply for a secured credit card, be prepared to either provide your bank account information or open a savings account with the card’s issuer to pay the deposit. Some credit card issuers let you pay the deposit later, though.

4. Wait for a decision. You could get approved instantly if you apply online. Otherwise, it could take anywhere from a day to a few weeks.

5. Receive your credit card in the mail. Your new secured credit card will arrive in the mail within 7-10 business days after you’re approved and you submit your security deposit.

You can learn more about how to get a secured credit card here on WalletHub.

Secured credit cards don’t need to charge the high fees and interest rates that unsecured cards for people with bad credit are known for. A secured card’s deposit protects the issuer instead.

Generally, most secured cards require a minimum deposit of $200. If you can meet that requirement and you have a valid Social Security number (SSN) as well as enough independent income or assets to make monthly minimum payments, you should be able to get approved.

Some secured credit cards won’t even check your credit when you apply. Some will accept an Individual Taxpayer Identification Number (ITIN) or a passport instead of an SSN, too.

However, each issuer has its own requirements and approval is not guaranteed in any case.

Given that your security deposit doubles as your credit line, you can typically increase your spending power at any time by simply adding to your deposit. This is helpful to credit building efforts as well, since available credit is an important component of your credit score. Most secured cards have a maximum deposit, though.

With a secured credit card, there’s usually no way to spend more than you can afford to pay back, given the unique relationship between the security deposit and the spending limit.

You can learn more about the top reasons to use a secured credit card here on WalletHub.

If you have bad credit and don’t need a small emergency loan, there’s no need to even consider other options. A secured credit card is definitely your best bet. It’s just a matter of finding the best one for your needs, and we generally recommend starting with any no-annual-fee offers that are available and then using rewards as a tiebreaker.

You shouldn’t worry about interest rates because you shouldn’t carry a balance from month to month with a secured card. You have to pay the security deposit, so you’d basically be lending money to yourself and charging a high rate of interest on the balance. However, there are a few cases where an alternative to a secured credit card may be the better choice.

1. Unsecured Credit Cards for Bad Credit If you have damaged credit and need a line of credit to pay for emergency expenses, you’ll have to make do with an unsecured credit card for bad credit. Such cards are known for charging extremely high rates and fees for very little added spending power, so they should be avoided whenever possible.

2. Unsecured Credit Cards for Limited/No Credit If you have limited or no credit, secured credit cards may have some competition. For example, some starter credit cards don’t charge annual fees or require a security deposit. And even better, student credit cards add lucrative rewards to the mix, along with more favorable rates.

3. Prepaid Cards Prepaid cards are good for setting a strict budget and not being able to exceed it, and once you’ve paid for something with them, you don’t have to worry about owing any additional money. However, they won’t be of much help in terms of either credit building or short-term financing. Prepaid cards don’t affect credit scores because they’re not included in our major credit reports. And they don’t provide any sort of loan or line of credit. They’re more like debit cards without the checking account.

4. Credit-Builder Loans If you are simply looking to build credit and aren’t worried about making purchases, you could consider getting a credit-builder loan. Offered by some banks and credit unions, these loans are designed specifically to help individuals build or repair their credit. They work the opposite way of a regular loan.

After the loan is approved, the bank holds the loan amount in a savings account while the borrower makes monthly payments. Once the loan is fully repaid, with interest, the borrower receives the money. The bank reports payment activity to the credit bureaus, which helps the borrower build credit.

If a family member or friend is willing to add you as an authorized user on their credit card account, this can help improve your credit score. Even if you don't use the card, the account's positive payment history can be reported on your credit report. However, it's important to ensure that the primary account holder continues to make timely payments.

The only thing that’s unique about a secured credit card is the security deposit that you have to place to get one. This deposit generally doubles as your spending limit, preventing you from charging more than you can afford to repay. So you’re not really borrowing anything with a secured credit card, which is why such cards are easy for even people with bad credit to get.

The deposit requirement also helps explain why secured credit cards are so much cheaper than unsecured credit cards for people with bad credit. Repayment for balances racked up with an unsecured card isn’t guaranteed, so issuers charge non-refundable fees to compensate.

The combination of high approval odds and low fees make secured cards the best tool available for building or rebuilding your credit.

If you still have questions about secured credit cards, you can probably find the answer on WalletHub’s Secured Card FAQ page.