Banks that offer secured credit cards
Most major banks and credit unions offer secured credit cards, but the terms, deposit requirements, and paths to a regular card differ significantly. Secured cards require you to put down a cash deposit that becomes your credit limit — typically between $200 and $2,500, though some banks go higher. The deposit stays in a separate account while you use the card, and the bank reports your payments to credit bureaus to build your credit history.
The largest issuers include Capital One, Discover, Bank of America, Chase, Citi, and Wells Fargo. Credit unions like Navy Federal, Pentagon Federal, and Connexus also offer secured options. Smaller regional banks and online-only banks like LendingClub and Chime have entered the market in recent years. The choice matters because approval odds, deposit amounts, and the timeline to upgrade to an unsecured card vary by issuer.
No single bank is "best" for everyone — your choice depends on whether you prioritize low deposits, fast credit-building, or the chance to move to a premium card later. The sections below break down what each major option requires and what happens after you open the account.
Key Takeaways
- Capital One, Discover, and Bank of America are the most common secured card issuers, but credit unions and online banks also offer them with varying deposit minimums.
- Deposit amounts range from $200 to $2,500 depending on the bank, and your deposit becomes your credit limit.
- Most banks report secured card activity to all three credit bureaus, so consistent on-time payments build your credit score over time.
- Many secured cards convert to unsecured cards after 6 to 18 months of responsible use, though the timeline and conditions differ by issuer.
- Annual fees range from $0 to $95, and some cards charge monthly maintenance fees that reduce your available credit.
Major banks and their secured card terms
Capital One Platinum Secured is one of the most widely available options. It requires a $200 minimum deposit, has no annual fee, and reports to all three credit bureaus. Capital One typically reviews your account after six months to consider converting it to an unsecured card, though conversion is not automatic. The card carries a variable APR (currently in the mid-20s range, though this changes) and offers no rewards.
Discover Secured requires a $200 minimum deposit and also charges no annual fee. Discover reports to all three bureaus and offers 1% cash back on all purchases — unusual for a secured card. The company reviews accounts after six months for conversion. Discover's approval process is known for accepting applicants with limited or damaged credit histories.
Bank of America Secured requires a $300 minimum deposit and has no annual fee. It reports to all three bureaus and offers no rewards. Bank of America reviews accounts after six months, though conversion depends on your payment history and credit score at that time. Existing Bank of America customers sometimes see faster approval.
Chase Secured (the Sapphire Secured, when available) typically requires a higher deposit — usually $500 to $2,500 — and carries a $95 annual fee. It reports to all three bureaus and offers 1.5% cash back on all purchases. Chase's conversion timeline is longer, often 18 months or more, but the card is designed for people rebuilding credit after serious damage. Availability is limited and changes frequently.
Citi Secured Mastercard requires a $200 minimum deposit and charges no annual fee. It reports to all three bureaus and offers no rewards. Citi reviews accounts after six months for conversion, though the process is less transparent than competitors.
Credit unions and online banks
Navy Federal Credit Union offers a secured card to members with a $200 minimum deposit, no annual fee, and no rewards. Navy Federal reports to all three bureaus and converts accounts after 12 months of on-time payments. Membership is limited to military, veterans, and their families.
Pentagon Federal Credit Union has similar terms — $200 minimum, no annual fee, no rewards, and 12-month conversion timeline. Membership requirements are comparable to Navy Federal.
Connexus Credit Union offers a secured card with a $500 minimum deposit, no annual fee, and no rewards. It reports to all three bureaus and converts after 12 months. Connexus membership is open to anyone in the United States.
LendingClub (online-only) offers a secured card with a $200 minimum deposit, no annual fee, and 1% cash back. It reports to all three bureaus. LendingClub's conversion timeline is typically 12 months, and the company is known for approving applicants with thin credit files.
Chime offers a secured card through a partner bank with a $200 minimum deposit and no annual fee. Chime reports to all three bureaus and converts after six months of on-time payments. Chime's main appeal is integration with its checking account and early direct deposit.
Deposit amounts and credit limits
Your deposit becomes your credit limit in most cases. A $200 deposit means a $200 limit; a $1,000 deposit means a $1,000 limit. Some banks allow you to increase your deposit later to raise your limit, though this is not automatic and may require a new application or a phone call.
A few banks offer small increases without additional deposits. Capital One, for example, sometimes raises your limit after six months of on-time payments, even if you do not add more money. Discover does the same. These increases are not may provide and depend on your payment history and credit score.
The deposit itself is not a fee — it is your money held in a separate account. When you close the card or convert to an unsecured card, the bank returns the deposit to you. However, some banks charge monthly maintenance fees (usually $5 to $10) that come out of your deposit, effectively reducing your available credit. Check the fine print before opening an account.
Annual fees and other costs
Most secured cards charge no annual fee, but some do. Chase Secured charges $95 annually. A few smaller issuers charge $25 to $50. The fee is worth paying only if the card offers rewards or other benefits that offset it — Chase's 1.5% cash back can justify the $95 if you spend enough.
Beyond annual fees, watch for monthly maintenance charges. Some banks deduct $5 to $10 per month from your deposit, which reduces your available credit over time. This is rare among major issuers but common among smaller or regional banks. Always read the fee schedule before applying.
Interest rates on secured cards are typically higher than unsecured cards — usually in the 18% to 26% range. This is standard because the bank is taking on risk even with the deposit as collateral. If you carry a balance, you will pay interest on it. The best strategy is to pay your statement in full each month to avoid interest charges and build credit faster.
How secured cards report to credit bureaus
All major secured card issuers report your account activity to Equifax, Experian, and TransUnion — the three national credit bureaus. This means your payment history, credit utilization, and account age all factor into your credit score. On-time payments build your score; late payments or high balances hurt it.
Most banks report monthly, so your activity shows up on your credit report within 30 to 45 days. This is why secured cards are effective for credit building — the activity is visible to lenders and affects your score relatively quickly.
Some smaller banks or credit unions report to only one or two bureaus instead of all three. This limits the impact on your credit score. Always confirm that the issuer reports to all three bureaus before opening an account — it is usually stated in the terms or on the application page.
Converting from secured to unsecured
Most banks review your account after six to 18 months and convert it to an unsecured card if you meet their criteria. Typical requirements include on-time payments for the entire period, a credit score above a certain threshold (usually 650 to 700), and low credit utilization (using less than 30% of your limit).
Conversion is not automatic. The bank reviews your file and decides whether to offer it. If you are approved, your deposit is returned to you, and your card terms may change — the APR might drop, rewards might be added, or the annual fee might be waived. Some banks offer a choice of unsecured cards to convert to, giving you options.
If conversion is denied, you can reapply after another six months of on-time payments. Some people keep their secured card open indefinitely if the terms are favorable, even after their credit improves — the account age helps your credit score, and the card can serve as a backup.
Frequently Asked Questions
Do I need a bank account at the same bank to open a secured card?
No. Most banks issue secured cards to anyone, regardless of whether you have a checking or savings account with them. However, some credit unions require membership first, which may involve opening an account or meeting other criteria. Check the issuer's requirements before applying.
What happens if I miss a payment on a secured card?
A missed payment is reported to all three credit bureaus and damages your credit score. The bank may also charge a late fee (typically $25 to $35) and increase your APR. Multiple missed payments can result in account closure and the bank keeping part or all of your deposit to cover the debt.
Can I use a secured card to pay bills or make online purchases?
Yes. Secured cards work like regular credit cards for purchases, bill payments, and online transactions. The only difference is the deposit requirement and the fact that it is designed for credit building rather than rewards or perks.
How long does it take to build credit with a secured card?
Most people see measurable credit score improvement within three to six months of on-time payments. Significant improvement — enough to may have access to for unsecured cards or better rates — typically takes 12 to 18 months. The timeline depends on your starting score and how much damage you are repairing.
What if I cannot afford the minimum deposit?
Some banks offer deposits as low as $200, which is the most common minimum. If even $200 is out of reach, look for credit-builder loans from credit unions or online lenders, which serve a similar purpose at a lower cost. Some people also save for a few months to meet the deposit requirement.