Top Secured Credit Cards For 2020
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Consumers who have struggled with their credit score might find it difficult to obtain a credit card. If you find yourself in this situation, you may want to consider applying for a secured credit card.
A secured credit card is very similar to a standard, unsecured credit card, but with one major difference. Once approved for a secured credit card, the cardholder must submit a refundable security deposit. In most cases, this security deposit becomes the credit limit on your card. But from that point on, the secured card functions just like a regular credit card acccount. Consumers can charge purchases on their card, and are required to make at least the minimum payment each month. When the balance on the card is completely paid off and the account is closed, the deposit is refunded unless the account holder is in default.
Here are five of the top secured credit cards in 2020:Capital One® Secured Mastercard® customer must submit a refundable security deposit of $49, $99, or $200, depending on your credit worthiness. You will then receive a credit line of $200. You will also get access to a higher credit line after making your first five monthly payments on time with no additional deposit needed. You will build credit by using this card since it reports to all three of the major credit reporting bureaus. This card does not have an annual fee, and has an interest rate of 26.74% (Variable).
Discover it® Secured apart from a number of other secured cards is the cash back feature. Cardholders can earn 2% cash back on all gas and restaurant purchases up to $1,000 in combined purchases each quarter; and 1% cash back on all other transactions. Plus, Discover will match your cash back rewards at the end of the first year. The card requires a security deposit of at least $200, and reports to all three major credit bureaus. After eight months of responsible use, Discover will consider transitioning you to an unsecured card. It has a standard APR 24.49% Variable for purchases, and an introductory APR on balance transfers for the first six months as a cardholder. There is no annual fee or foreign transaction fee on this card.
Citi® Secured Mastercard® for people that need to start building their credit score. A security deposit of at least $200 is required for this product. But unlike a prepaid card, this card will help build your credit history since Citi will send monthly notifications to the credit bureaus. There are some helpful tools on this card–like Auto Pay, text/email alerts and online Bill Pay–which assist cardholders in keeping track of their financial situation. The card has an APR of 23.99% (Variable). It can be used anywhere that Mastercards are accepted. Unlike a majority of the secured cards on the market, the Citi Secured Mastercard has no annual fee.
Green Dot Visa® Secured Credit Card is marketed by Green Dot Bank to people who may not have a bank account. This card may help you build your credit score if you use it prudently since your activity will be reported to the major credit bureaus. There are no monthly or one-time fees on this card, but there is an $39 annual fee. A security deposit of at least $200 is required for this product. The card has an APR of 19.99% (F). It can be used anywhere that Visa is accepted.
Green Dot primor® Visa® Gold Secured Credit Card is another secured card offered by Green Dot Bank. It reports your activity to the three major credit bureaus, so responsible use of the card can help build your credit profile. The card has one of the lowest APRs of any secured card on the market: 9.99%. The credit line you receive will be determined by the amount of your security deposit but there is a minimum deposit of $200 and a maximum of $5,000. There is a $49 annual fee on this card.