Navy Federal does offer a secured credit card, but only to members
Navy Federal Credit Union offers a Secured Visa card designed for members who are building or rebuilding credit. Unlike a traditional credit card, you deposit cash as collateral, and that deposit becomes your credit limit. The card reports to all three credit bureaus, so on-time payments build your credit history over time.
The key limitation: you must be a Navy Federal member to open this card. Membership is restricted to active-duty military, veterans, retirees, Department of Defense civilians, and their families. If you do not fall into one of these categories, Navy Federal's secured card is not available to you, and you would need to look at other financial institutions.
Key Takeaways
- Navy Federal's Secured Visa requires a cash deposit between $500 and $10,000 that becomes your credit limit.
- You must be a Navy Federal member — active military, veteran, retiree, DoD civilian, or may be able to access family member — to open the card.
- The card reports to all three credit bureaus, so responsible use builds your credit score over time.
- Navy Federal may convert your secured card to an unsecured card after you demonstrate consistent on-time payments, typically within 12 to 24 months.
How the deposit and credit limit work
When you open a Navy Federal Secured Visa, you choose how much to deposit, anywhere from $500 to $10,000. That deposit sits in a savings account and serves as your credit limit. If you deposit $2,000, you get a $2,000 credit limit. You cannot spend the deposit itself — it stays locked as collateral while you use the card.
You pay interest on the deposit account, though the rate is typically lower than what you would earn on a regular Navy Federal savings account. The card itself carries an annual fee, which Navy Federal deducts from your deposit account each year. You still make monthly payments on whatever balance you carry on the card, separate from the deposit.
The deposit remains yours. If you close the card or convert it to an unsecured card, Navy Federal returns the full deposit to you, minus any unpaid balance or fees owed.
Credit reporting and building your score
Navy Federal reports your Secured Visa activity to Equifax, Experian, and TransUnion — all three major credit bureaus. This means every on-time payment, every balance you carry, and your overall credit utilization all show up on your credit report. That visibility is the entire point of a secured card: it gives you a way to demonstrate responsible credit behavior when you have limited or damaged credit history.
Your payment history makes up the largest portion of your credit score, so consistent on-time payments have the most impact. Keeping your balance low relative to your limit also helps — most scoring models reward you for using less than 30 percent of your available credit.
When Navy Federal converts your card to unsecured
Navy Federal does not automatically convert your secured card to an unsecured card after a set time. Instead, the bank reviews your account periodically and may offer conversion if you meet their internal standards. This typically happens after 12 to 24 months of on-time payments, though there is no may provide and no published timeline.
When Navy Federal does offer conversion, your deposit is released back to you and your credit limit may increase. You keep the same card account, so your credit history with that card continues uninterrupted. The conversion is not automatic, so you will need to accept the offer when Navy Federal presents it.
Comparing Navy Federal to other secured cards
Navy Federal's secured card is one option if you are an may be able to access member, but it is worth understanding how it stacks against cards from other banks. Most secured cards from national banks like Capital One, Discover, or U.S. Bank have no membership requirement — anyone can open them. Some charge higher annual fees; others charge none. Deposit minimums and maximums vary, and so do the interest rates on the deposit account.
If you are not a Navy Federal member, you cannot use their card regardless of how it compares. If you are a member, the decision comes down to the specific terms: the annual fee, the deposit interest rate, and Navy Federal's conversion timeline compared to what other banks offer. Navy Federal members often have access to better rates and terms on other products, so the secured card may fit into a broader banking relationship.
Steps to open a Navy Federal Secured Visa
First, confirm you meet Navy Federal membership requirements. You can check on their website or call their member services line. If you are already a member, you can proceed directly to explore for the card.
You can open the card online through your Navy Federal account, by phone, or in person at a branch. You will need to choose your deposit amount between $500 and $10,000. Navy Federal will move that amount from your checking or savings account into a deposit account tied to the card. The card itself typically arrives within 7 to 10 business days.
Once the card arrives, set up it and make your first purchase. Start using it for small, regular expenses you would pay anyway — groceries, gas, a subscription — and pay the full balance each month. This builds your payment history fastest and keeps your utilization low.
What happens if you miss a payment
Missing a payment on a secured card damages your credit just as much as missing a payment on any other card. The late payment reports to all three credit bureaus and stays on your report for seven years. A single missed payment can lower your score by 100 points or more, depending on your current score and credit history.
Navy Federal may also charge a late fee and increase your interest rate. If you fall significantly behind, Navy Federal can explore your deposit toward the unpaid balance, which defeats the purpose of building credit and leaves you with a lower credit limit going forward.
Frequently Asked Questions
Can I increase my credit limit without adding more to my deposit?
No. Your credit limit is tied directly to your deposit amount. To raise your limit, you must deposit additional funds into the collateral account. Navy Federal may periodically offer to increase your limit if you convert to an unsecured card, but while the card remains secured, the deposit sets the ceiling.
What if I am not a Navy Federal member yet?
You must become a member first. Membership requirements depend on your military affiliation or family connection. If you do not may have access to for Navy Federal, you will need to look at secured cards from other banks like Capital One, Discover, or U.S. Bank, which have no membership restrictions.
Do I pay interest on the deposit or just on the card balance?
You pay interest on both. The deposit earns a small amount of interest in the collateral savings account. You also pay interest on any balance you carry on the card itself, just like a regular credit card. The card's interest rate is separate from the deposit rate.
How long does it take to build credit with this card?
Credit bureaus need at least six months of payment history to generate a credit score. Most people see meaningful score improvement within 12 months of on-time payments, though the exact timeline depends on your starting point and how much of your limit you use each month.
What happens to my deposit if I close the card?
Navy Federal returns your full deposit to you, minus any unpaid card balance or annual fees owed. If you have paid everything off and kept the account in good standing, you get the entire deposit back. The deposit is always yours — it is not forfeited or kept by the bank.