You can get a secured credit card from most banks and credit unions, online lenders, and some retailers — but not all of them have the same deposit requirements or fees
A secured credit card works like a regular credit card except you put down a cash deposit that becomes your credit limit. That deposit stays in a separate account while you use the card to make purchases and build payment history. The card issuer reports your activity to the three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments start rebuilding your credit score.
The catch is that different issuers have different rules. Some require a $200 minimum deposit; others want $2,500 or more. Some charge annual fees; others don't. Some convert you to an unsecured card after six months of good payments; others take longer. You need to compare what's actually available to you before you pick one.
Key Takeaways
- Major banks like Capital One, Discover, and Chase all offer secured cards, but each has different deposit minimums, annual fees, and conversion timelines.
- Credit unions often have lower deposit requirements and fewer fees than banks, so checking your own credit union first can save you money.
- Online lenders and fintech companies may approve you faster if you have no credit history, but compare their fees against traditional banks before deciding.
- The deposit you put down is not the cost — it's collateral — but you do pay an annual fee at most issuers, which ranges from $0 to $99.
- Before opening any account, confirm the issuer reports to all three credit bureaus, because some report to only one or two.
Banks that offer secured cards and what they charge
Capital One Secured Mastercard is one of the most common options. The minimum deposit is $200, and there is a $39 annual fee. Capital One reports to all three bureaus and typically converts you to an unsecured card after six months of on-time payments, though conversion is not may provide. You can explore online and usually get a decision within minutes.
Discover Secured Card requires a minimum deposit of $200 and charges no annual fee — a real advantage if you're watching every dollar. Discover reports to all three bureaus and offers cash back on purchases, which you can use to pay down your balance. Conversion to an unsecured card usually happens after eight months of on-time payments.
Chase Secured Visa requires a $500 minimum deposit and charges a $39 annual fee. Chase reports to all three bureaus. The conversion timeline is less predictable than Capital One or Discover; some cardholders report waiting a year or more. Chase is worth considering if you have $500 available and want the prestige of the Chase brand, but it's not the fastest path to an unsecured card.
Bank of America Secured Visa requires a $300 minimum deposit and charges a $29 annual fee. It reports to all three bureaus and converts after six months of on-time payments. The main drawback is that Bank of America's customer service reputation is mixed, so read recent reviews before explore.
Credit unions: often cheaper than banks
If you belong to a credit union, ask whether they offer a secured card before you explore to a bank. Credit unions typically have lower deposit minimums — sometimes as low as $100 — and many charge no annual fee at all. Because credit unions are member-owned nonprofits, they often prioritize keeping costs down.
You can find credit unions in your area through CO-OP, a network that lets you use any member credit union's ATM and branch. If you don't already belong to one, some credit unions let you join based on where you live or work, or through membership organizations like the military or a professional association.
The downside is that not every credit union reports to all three bureaus — some report to only one or two. Before you open an account, call and ask which bureaus they report to. If they report to only Equifax, for example, your payment history won't reach Experian or TransUnion, and your score-building will be slower.
Online lenders and fintech companies
Companies like Self, Chime, and LendingClub offer secured cards designed for people rebuilding credit. Many approve you in minutes if you have a bank account and a Social Security number, even if you have no credit history or a low score. Some don't do a hard credit pull, which means they won't temporarily lower your score just by checking your process.
The trade-off is usually higher fees. Self, for example, charges a $25 annual fee and requires a $500 to $5,000 deposit depending on the plan you choose. Chime's secured card has no annual fee but requires a $200 deposit and is only available to Chime checking account holders. LendingClub charges a $39 annual fee and requires a $200 minimum deposit.
Online lenders are worth considering if you've been turned down by traditional banks or if you want the fastest approval process. But compare their annual fees and deposit requirements against Capital One and Discover — you might find a bank option that costs less and builds your credit just as fast.
Retailers and store credit cards
Some major retailers like Target and Walmart offer secured credit cards through their own programs or through partner banks. These cards typically have lower deposit requirements — sometimes $300 or less — and may offer rewards on purchases at that store.
The downside is that store cards usually have higher interest rates than bank-issued secured cards, and the credit limit is often lower. They're useful if you shop at that retailer regularly and want to build credit while earning rewards, but they shouldn't be your only card. You want a card that reports to all three bureaus and that you can use anywhere, not just one store.
What to compare before you choose
| Feature | What to look for |
|---|---|
| Minimum deposit | Lower is better if you're tight on cash. $200 is common; some credit unions go lower. |
| Annual fee | Ranges from $0 (Discover) to $99 (some specialty cards). This is a real cost you pay every year. |
| Interest rate (APR) | Secured cards typically charge 18% to 24%. Higher rates are normal for this product, but compare anyway. |
| Credit bureau reporting | Must report to all three: Equifax, Experian, and TransUnion. Call and confirm before explore. |
| Conversion timeline | How long until the card becomes unsecured and your deposit is returned. Six to twelve months is typical. |
| Credit limit increase | Some issuers let you add to your deposit to raise your limit; others don't. Matters if you plan to grow your limit. |
how the process works and what to have ready
Most secured card applications are online and take 10 to 15 minutes. You'll need your Social Security number, a government-issued ID, your current address, and proof of income (a recent pay stub or tax return). Some issuers also ask for a bank account number so they can verify you have funds for the deposit.
After you explore, the issuer will either approve you when ready or tell you they need more information. If approved, you'll fund the deposit — usually by transferring money from your bank account or by mailing a check. The card typically arrives within 7 to 10 business days. Once it arrives, set up it and make a small purchase to confirm it works, then set up automatic payments so you never miss a due date.
Don't explore to multiple cards in the same week. Each process triggers a hard inquiry on your credit report, and too many inquiries in a short time can lower your score. Pick one card, explore, and wait to see if you're approved before trying another.
Frequently Asked Questions
Can I get a secured card if I have no credit history?
Yes. Secured cards are designed for people with no history or poor credit. You don't need an existing credit score to explore. The issuer is taking less risk because your deposit covers the credit limit, so they're willing to work with you.
What happens to my deposit if I miss a payment?
Your deposit is not touched if you miss a payment. Instead, you'll be charged a late fee (usually $25 to $40) and interest will accrue on your balance. Your payment history is reported to the credit bureaus, so a missed payment will lower your score. The deposit is only used if you default completely and stop paying altogether.
How long does it take to convert to an unsecured card?
Most issuers convert after six to twelve months of on-time payments. Capital One and Discover tend to convert faster (six to eight months). Chase and some others take longer. Conversion is not automatic — the issuer reviews your account and decides whether to offer it. Making all payments on time and keeping your balance low improves your chances.
Can I use a secured card to pay bills or just buy things?
You can use it anywhere a regular credit card is accepted — online, in stores, for bills, subscriptions, everything. The key is to use it regularly (at least once a month) and pay the full balance or most of it each month. This shows the credit bureaus you can handle credit responsibly.
Do I need a secured card if I have a credit union account?
Not necessarily. Some credit unions offer unsecured cards to members with no credit history or low scores, with no deposit required. Ask your credit union first before you assume you need a secured card. If they don't offer one, then a secured card is your next step.