What the Amex Secured Card is and who it's for

The American Express Secured Credit Card is a credit card that requires you to put down a cash deposit, which becomes your credit limit. If you have limited credit history, a low credit score, or are rebuilding after past problems, this card lets you borrow against money you've already set aside. Amex reports your payment activity to all three credit bureaus, so on-time payments build your credit record.

This is not a prepaid card. You still make monthly payments, you still pay interest if you carry a balance, and you still have a credit limit separate from your deposit. The deposit straightforward sits in a savings account at Amex Bank, held as collateral. Most people move to an unsecured Amex card after 18 months of on-time payments, at which point they get their deposit back.

Key Takeaways

  • Your deposit becomes your credit limit, so a $500 deposit means a $500 limit — you cannot borrow more than you've deposited.
  • The card charges an annual fee (currently $95), which is higher than most secured cards but typical for American Express products.
  • Interest rates vary by creditworthiness and are not fixed, so your rate depends on your credit profile at the time you open the account.
  • Amex reports to all three credit bureaus monthly, so consistent on-time payments build your credit score over time.
  • After 18 months of on-time payments, you may be able to convert to an unsecured card and recover your full deposit.

Deposit requirements and credit limits

You must deposit between $500 and $2,500 to open this card. That deposit amount becomes your credit limit — if you deposit $750, you get a $750 limit. You cannot request a higher limit without adding more money to your deposit account.

The deposit earns a small amount of interest, though the rate is low. Amex holds the deposit in a savings account in your name at Amex Bank, N.A., so it is FDIC-insured up to the standard limit. You cannot withdraw the deposit while the account is open; it stays locked until you close the card or convert to an unsecured product.

Annual fee and interest rates

The American Express Secured Card charges a $95 annual fee, charged to your account once per year. This is one of the higher annual fees among secured cards — many competitors charge $0 to $50. The fee is worth paying only if you plan to use the card regularly and benefit from Amex's reporting to the credit bureaus.

Interest rates (called APR, or annual percentage rate) are not fixed and vary based on your creditworthiness. Amex does not publish a standard rate; instead, you receive a rate offer when you are approved. Rates typically range from 19% to 24%, though the exact rate depends on your credit history and income. If you carry a balance, interest accrues daily on the unpaid amount.

How payments and credit reporting work

You make monthly payments just like any other credit card. Amex reports your payment history, credit limit, and balance to Equifax, Experian, and TransUnion every month. This means on-time payments build your credit score, and missed payments damage it. The card does not offer a grace period on interest — if you carry a balance, interest starts accruing when ready.

Your payment history is the largest factor in credit scoring, so the main benefit of this card is demonstrating that you can pay on time consistently. Even small purchases paid in full each month show lenders that you manage credit responsibly. After 18 months of on-time payments, contact Amex to ask about converting to an unsecured card; approval is not may provide, but many cardholders succeed at this stage.

Comparing the Amex Secured Card to other secured options

The Amex Secured Card is more expensive than most competitors because of the $95 annual fee. A Capital One Secured Mastercard or Discover Secured Card, by contrast, often charge $0 to $35 annually. However, Amex's brand recognition and acceptance are broader, and Amex's customer service is widely regarded as responsive.

The real difference is in your goals. If you want to build credit as cheaply as possible, a $0-fee secured card from another issuer may be better. If you value Amex's brand, want access to Amex's customer service, or plan to use the card frequently enough that the annual fee feels worthwhile, the Amex card makes sense. Compare the cards side by side: deposit range, annual fee, APR range, and conversion timeline. Most secured cards convert after 18 to 24 months, so the timeline is similar across issuers.

What happens after you convert to an unsecured card

After 18 months of on-time payments, you can contact Amex and ask to convert to an unsecured American Express card. Amex will review your account history and credit score. If approved, your deposit is returned to you in full, usually within 5 to 7 business days. Your credit limit on the new unsecured card may be higher or lower than your secured limit — Amex sets it based on your current creditworthiness.

If you are not approved for conversion, you can keep the secured card open and continue building credit, or close it and move to another card. Closing the card does not hurt your credit score directly, but it does reduce your total available credit, which can slightly raise your credit utilization ratio. If you close the account, your deposit is returned within 5 to 7 business days.

Fees beyond the annual charge

The $95 annual fee is the main cost, but other fees may explore. Late payments trigger a late fee (typically $25 to $35 for the first late payment, higher for subsequent ones). Returned payments, foreign transaction fees, and balance transfer fees all carry charges. Amex does not charge an inactivity fee, so you can keep the card open without using it.

Read the full terms and conditions before opening the account. Amex publishes the Pricing and Terms document on its website, which lists all fees and conditions. Knowing the full cost upfront helps you decide whether the card is worth the annual fee for your situation.

Frequently Asked Questions

Can I use the Amex Secured Card if I have no credit history?

Yes. Amex does not require an existing credit score or history to open this card. You do need a Social Security number, a U.S. address, and enough income to cover the deposit and annual fee. If you are just starting to build credit, this card is designed for you.

What if I miss a payment?

A missed payment is reported to the credit bureaus and damages your credit score. You will also be charged a late fee. Amex may close your account if you miss multiple payments. The deposit remains locked in your account and is not forfeited for a single late payment, but repeated delinquency can result in account closure.

Can I increase my credit limit without adding more money to my deposit?

No. Your credit limit is tied directly to your deposit amount. To raise your limit, you must deposit additional funds. After conversion to an unsecured card, Amex may increase your limit based on your payment history and creditworthiness, but that happens only after you move away from the secured product.

How long does it take to build credit with this card?

Credit scores begin to improve within 30 to 60 days of opening the account and making your first on-time payment. Significant improvement typically takes 6 to 12 months of consistent on-time payments. After 18 months, you may be ready to convert to an unsecured card, though the timeline varies by individual.

What happens to my deposit if I close the card?

Your full deposit is returned to you, usually within 5 to 7 business days of closing the account. Closing the card does not forfeit the deposit. However, closing does reduce your available credit, which can slightly raise your credit utilization ratio and affect your score temporarily.