Banks and credit unions are the main places to open a secured card
You can get a secured credit card from most banks, credit unions, and some online lenders. The process is straightforward: you deposit cash as collateral, the card issuer holds it in a savings account, and you use the card like a regular credit card. Your credit limit is usually equal to your deposit, though some issuers offer limits slightly higher.
The biggest difference between issuers is the deposit amount they require, the annual fee (if any), and how quickly they report your payment history to the three credit bureaus. Not all secured cards report to all three bureaus, so checking this before you open an account matters if you're building credit.
Key Takeaways
- Major banks like Capital One, Discover, and U.S. Bank all offer secured cards, as do many regional banks and credit unions.
- Deposit amounts range from $200 to $2,500 depending on the issuer, and your credit limit usually matches your deposit.
- Annual fees vary widely — some secured cards charge nothing, others charge $25 to $95 per year.
- Before opening an account, confirm the issuer reports to Equifax, Experian, and TransUnion, since not all do.
- You can move your deposit to a different card issuer later, though you'll need to close the old account first.
Major national banks with secured card programs
Capital One, Discover, U.S. Bank, and Chime all offer secured cards that are widely available. Capital One's Secured Mastercard requires a $200 minimum deposit and charges a $39 annual fee. Discover's Secured Card also requires $200 minimum and charges no annual fee. U.S. Bank Secured Visa Card requires $500 minimum and charges $29 annually. Each reports to all three credit bureaus monthly.
You can open these accounts online in most cases. You'll need a Social Security number, a valid ID, and proof of address (a recent utility bill or bank statement works). The deposit is transferred from a checking or savings account you already have, or you can mail a check. Most approvals happen within one to three business days.
Credit unions and regional banks
Your own credit union may offer a secured card, often with lower deposit minimums and no annual fee. Call your credit union's member services line and ask whether they have a secured credit card program. Many regional banks like PNC, Wells Fargo, and Truist also offer secured cards, though terms vary by location and account type.
Credit unions sometimes waive the annual fee for members or offer it only in the first year. Deposit minimums at credit unions often start at $300 or $500 rather than $200. The advantage is that you're working with an institution that already knows your banking history, which can speed approval.
Online lenders and fintech companies
Chime, LendingClub, and Self all offer secured cards through online platforms. These companies typically have lower deposit minimums ($200 or less) and no annual fees. The trade-off is that some online lenders report less frequently to the credit bureaus, or report to only one or two bureaus instead of all three.
Opening an account online takes 10 to 15 minutes. You'll upload a photo ID and proof of address, and the deposit is pulled from a bank account. Approval usually happens the same day or within 24 hours. However, check the issuer's reporting schedule before you sign up — monthly reporting to all three bureaus is the standard you want for credit building.
What to compare before you choose
| Feature | What to Look For |
|---|---|
| Deposit minimum | Lower is better if you have limited cash. Most range from $200 to $500. |
| Annual fee | Some cards charge $0, others $25 to $95. Factor this into your cost. |
| Credit limit | Usually equals your deposit. Some issuers offer 10% to 25% higher limits. |
| Reporting to bureaus | Confirm the issuer reports to Equifax, Experian, and TransUnion each month. |
| Path to unsecured card | Ask whether the issuer automatically reviews your account for conversion after 6 to 12 months of on-time payments. |
| Interest rate (APR) | Secured cards typically charge 18% to 24% APR. Lower is better, but less important if you pay in full each month. |
How to open an account step by step
Start by choosing one or two issuers and visiting their website or calling their customer service line. Ask about deposit minimums, annual fees, and whether they report to all three credit bureaus. Once you've decided, gather your documents: a valid government ID, your Social Security number, and proof of address (a utility bill, lease, or recent bank statement dated within the last 60 days).
If you're explore online, you'll enter your personal information, upload your ID and proof of address, and choose your deposit amount. The issuer will pull a soft credit inquiry (which doesn't affect your credit score) to verify your identity. Once approved, you'll transfer your deposit from a linked bank account or receive instructions to mail a check. The card usually arrives within 7 to 10 business days.
If you're explore in person at a bank or credit union branch, bring your ID and proof of address. A representative will walk you through the process, verify your information, and process your deposit on the spot. You may receive a temporary card number to use when ready while your physical card is mailed.
What happens to your deposit
Your deposit is held in a separate savings account in your name, not commingled with the issuer's operating funds. You earn little to no interest on it — most secured card deposits earn 0% to 0.5% annually. The issuer keeps the deposit as collateral but cannot touch it unless you default on your card payments or close the account.
When you close the account or convert to an unsecured card, your deposit is returned to you within 5 to 10 business days. If you've paid your balance in full and on time for 6 to 12 months, many issuers will automatically review your account for conversion to an unsecured card without requiring you to ask. At that point, your deposit is released and you keep the card with a higher credit limit.
Frequently Asked Questions
Can I get a secured card if I have no credit history?
Yes. Secured cards are designed for people with no credit history, poor credit, or a long gap since their last credit activity. You don't need an existing credit score to open an account. The issuer will verify your identity and income, but approval is based on your deposit, not your credit past.
What's the difference between a secured card and a prepaid card?
A secured card is a credit card backed by your deposit — you borrow money and build a credit history by making payments. A prepaid card is not a credit card; you load money onto it and spend only what you've loaded. Prepaid cards don't report to credit bureaus and don't build credit. Secured cards do both.
Can I use my secured card deposit as my credit limit?
Your credit limit is usually equal to your deposit, so in effect yes. If you deposit $500, your limit is typically $500. Some issuers offer limits 10% to 25% higher than your deposit, so a $500 deposit might give you a $550 or $625 limit. You cannot spend your deposit directly — it stays in the savings account as collateral.
How long does it take to convert a secured card to an unsecured card?
Most issuers review your account for conversion after 6 to 12 months of on-time payments. Some convert automatically; others require you to request it. Once converted, your deposit is returned and you keep the card with a higher credit limit. Check your issuer's conversion policy before you open the account.
What if I want to switch to a different secured card issuer?
You can close your current secured card and open a new one with a different issuer. Your original deposit will be returned within 5 to 10 business days. Keep the old card open for at least a few months after switching if possible, since closing it affects your credit history length. You can then close it once your new card has built some payment history.