The Ultimate Guide to Credit Cards
Tuesday, September 22, 2020
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2020's Best Secured Credit Cards

Below are our picks for 2020's best secured credit cards. Unlike unsecured cards, these cards require users to make a refundable deposit into a bank account to secure a line of credit.

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The credit card offers that appear on this site are from credit card companies from which receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). does not include all credit card companies or all available credit card offers.

Review Breakdown: Secured Cards

Secured credit cards are a great way for those with a limited or bad credit history to improve their credit through responsible use. Finding the right secured card, however, can be tricky. Below is a summary table that makes it much easier. Compare features of the top secured cards, then simply click on your card of choice to visit its online application.

Here are 2020's best secured credit cards:

Best Secured Credit Card
RankCard NameAnnual FeeCredit NeededExpert Rating
1Applied Bank® Secured Visa® Gold Preferred® Credit Card$48Poor/Fair/Limited/Damaged ★★★★★ 4.8
2Bank of America® Cash Back Secured Credit Card$0Bad/Limited ★★★★★ 4.7
3Capital One® Secured Mastercard®$0Limited, Bad ★★★★★ 4.7
4BankAmericard® Secured Credit Card$0Bad/Limited ★★★★★ 4.7
5Citi® Secured Mastercard®$0Bad or No Credit ★★★★★ 4.6
6Progress CreditSee website for Details*Bad, Fair, or No Credit ★★★★★ 4.5
7Merrick Bank Secured Visa® from Merrick Bank$36 for first year. Billed $3 per month thereafterSee website for Details* ★★★★ 4.3
8OpenSky® Secured Visa® Credit Card$35Poor ★★★★ 4.0
9First Progress Platinum Prestige MasterCard® Secured Credit Card$49Bad / No Credit ★★★★ 3.9
10The First Progress Platinum Elite MasterCard® Secured Credit Card$29Poor/Limited/No Credit ★★★★ 3.8
11First Progress Platinum Select MasterCard® Secured Credit Card$39Poor/Limited/No Credit ★★★★ 3.8

How a Secured Credit Card Works

Brittney Mayer
By: Brittney Mayer
Credit Analyst
How a Secured Credit Card Works Guide: Secured Cards

The main factor that determines whether you’re approved for a new credit card is your credit risk. Consumers with established credit histories and high credit scores present a lower risk, so they’re the most likely to be approved for new credit.

Similarly, applicants with no or limited credit histories and/or low credit scores are least likely to be approved due to their perceived high credit risk.

One way consumers with low scores or limited credit histories can improve their credit risk — and, thus, their approval chances — is to apply for a secured credit card. While most credit cards are unsecured, meaning they don't require a deposit, secured credit cards are lower-risk for the issuer as the deposit acts as collateral against default.

You Must Make a Security Deposit

While you may need to undergo a credit check to determine your eligibility, many secured credit cards will approve a wide range of applicants so long as you can make the required minimum security deposit (typically $200 to $500). In most cases, the credit limit of your secured credit card will be equal to the size of your deposit.

The deposit you make for a secured credit card is fully refundable, and it will only be used by the issuer if you default on your account. If you want to recover your deposit at any time, you can do so by closing your account with a $0 balance.

Your Usage is Reported to the Credit Bureaus to Build Credit

In terms of functionality, a secured credit card works the same as an unsecured credit card. You can make purchases in-store and online, just as you would any other card.

Unsecured vs. Secured Credit Cards

Additionally, most secured credit card issuers report your usage and payment history to the major credit reporting bureaus, just as they would a typical unsecured card. However, this is important to verify before you choose a card, as you’ll need your payment history to be reported to the bureaus to establish and build credit.

By using the secured credit card and making the monthly payments on time and as agreed, you’ll start to build a positive payment history. Depending on your secured credit card issuer, improving your credit and showing responsible card use may result in an automatic upgrade to an unsecured credit card (and the refund of your deposit).

Read the Terms and Conditions

Just as with an unsecured credit card, secured credit card issuers have different terms and conditions. Look at the offers carefully and compare the fees they charge. Some of our top-rated secured cards don’t charge annual fees, like the Discover it® Secured and Capital One® Secured Mastercard®, but many other secured credit cards will charge an annual fee of between $25 and $99, regardless of whether you use the card.

Look for other fees as well, such as monthly account maintenance fees, credit limit increase fees, and late payment fees. These charges can really add up if you’re not aware of them.

Additionally, be sure to note the APR you will be charged, and if there is a grace period for purchases. While it’s always best to pay your bill in full each month — cards with a grace period will allow you to avoid interest entirely this way — a lower APR can be a boon in times when it’s not possible.

Editorial Note: Opinions expressed here are author's alone, not those of any bank, credit card issuer, airlines or hotel chain, and have not been reviewed, approved or otherwise endorsed by any of these entities.

The information on this page was reviewed for accuracy on .

About the Author

Brittney Mayer Brittney Mayer Credit Analyst

Brittney is a Credit Strategist and Finance Expert who has spent years honing her knowledge of the credit industry both personally and professionally. Brittney applies her more than a decade of research experience to crafting in-depth consumer guides designed to help CardRates readers make better, more informed financial decisions.

Advertiser Disclosure: The credit card offers that appear on this site are from credit card companies from which receives compensation. This compensation may impact how and where products appear on this site (including, for example, the order in which they appear). does not include all credit card companies or all available credit card offers. See the credit card issuer's website for specific terms and conditions of each card.