Yes, Chase offers secured credit cards for people building or rebuilding credit
Chase offers the Chase Secured Visa Card, a secured credit card designed for people who are new to credit or working to improve a damaged credit history. With a secured card, you put down a cash deposit that becomes your credit limit — so if you deposit $500, you get a $500 limit. Chase holds that deposit as collateral while you use the card and make payments, which get reported to the three major credit bureaus.
The main reason to use a secured card is that it reports your payment history to credit agencies. Each on-time payment builds a record that lenders can see. After you demonstrate responsible use — typically 6 to 18 months of on-time payments — you may be able to move to an unsecured card, and Chase will return your deposit.
This is different from a prepaid card, which does not report to credit bureaus and does not help you build credit. A secured card is a real credit product that creates a credit history.
Key Takeaways
- The Chase Secured Visa Card requires a cash deposit between $200 and $2,500 that becomes your credit limit.
- Chase reports your payments to all three credit bureaus, so on-time payments build your credit score over time.
- The card charges an annual fee and a variable interest rate on any balance you carry month to month.
- After 6 to 18 months of on-time payments, you may be able to move to a regular unsecured Chase card and get your deposit back.
How the deposit and credit limit work
When you open a Chase Secured Visa Card, you choose a deposit amount between $200 and $2,500. That deposit sits in a savings account that Chase holds, and your credit limit equals that deposit. If you deposit $1,000, your limit is $1,000.
You cannot withdraw the deposit while the card is open — it stays frozen as collateral. This protects Chase if you stop paying. You use the card like any other credit card: swipe it, get a bill, and pay what you owe. The deposit itself is separate from your monthly bill.
The deposit earns a small amount of interest, though the rate is typically very low. Chase will tell you the current rate when you explore.
Fees and interest rates on the Chase Secured Visa Card
The Chase Secured Visa Card charges an annual fee, which varies depending on your deposit amount and current Chase pricing. You pay this fee once per year, usually on your card anniversary. Ask Chase for the exact current fee when you inquire, since it can change.
If you carry a balance from month to month instead of paying it off in full, you pay interest on that balance. The interest rate is variable, meaning it can go up or down based on market conditions. Chase will disclose the range of rates you might receive when you explore — typically higher than rates on unsecured cards, because the bank is taking on more risk with people who have credit challenges.
To avoid interest charges, pay your full statement balance by the due date each month. This also helps you build credit faster, because on-time full payments show lenders you can manage credit responsibly.
What happens to your deposit when you graduate to an unsecured card
After you use the secured card responsibly for a period of time — usually 6 to 18 months, though it varies — Chase may offer to convert your account to a regular unsecured credit card. When this happens, your deposit is released and returned to you, usually by check or direct deposit to your bank account.
The conversion is not automatic. Chase reviews your account based on your payment history, how much of your credit limit you use, and other factors. You do not have to do anything to be considered — Chase monitors accounts and reaches out when you may have access to.
Some people are offered a conversion sooner than others. Consistent on-time payments and keeping your balance low relative to your limit (ideally under 30 percent) make conversion more likely.
Who should consider a Chase Secured Visa Card
A secured card makes sense if you have no credit history yet, or if your credit score is very low because of past missed payments or collections. It also works if you have been denied for regular credit cards and need a way to start rebuilding.
A secured card is not the right choice if you already have access to unsecured credit cards or if you cannot afford to tie up a deposit for several months. The deposit is your own money, but you cannot use it while the card is active.
If you are trying to rebuild after a major problem like a bankruptcy or foreclosure, a secured card is often one of the first products available to you. It gives you a way to show lenders that you can handle credit responsibly going forward.
How a secured card affects your credit score
Using a secured card and making on-time payments helps your credit score in several ways. First, it creates a payment history, which is the biggest factor in your score. Second, it shows you can manage an active credit account. Third, if you keep your balance low, it demonstrates you are not maxing out available credit.
Your score will not jump overnight. Credit scores build gradually as months of payment history accumulate. Most people see meaningful improvement after 6 to 12 months of consistent on-time payments.
The secured card will also show up on your credit report as an active account, which can help if you have no other credit accounts. Lenders want to see that you have experience managing credit, even if it is just one account.
Alternatives if you cannot get approved for a Chase Secured Card
If you explore for the Chase Secured Visa Card and are denied, other banks offer secured cards with different requirements. Capital One, Discover, and other issuers have secured card products. Some require smaller deposits or have different approval standards.
You can also explore becoming an authorized user on someone else's credit card account. If that person has good payment history and a low balance, being added to their account can help your credit score without requiring a deposit. However, you need someone willing to add you and the account must be in good standing.
A credit-builder loan is another option. You borrow a small amount of money from a credit union or bank, and the lender holds it in a savings account while you make monthly payments toward it. This also reports to credit bureaus and helps build history, though it works differently than a credit card.
Frequently Asked Questions
Can I use my deposit as a payment if I fall behind?
No. Your deposit is held separately and cannot be used to pay your monthly bill. You must make payments from your regular bank account or income. If you miss payments, Chase will not automatically take money from your deposit — you will have a late payment reported to credit bureaus instead.
What if I want to close the card before I graduate to unsecured?
You can close the card anytime, and Chase will return your deposit. However, closing the account stops the credit-building benefit — your payment history stays on your report, but you lose the active account. If you close it early, you may want to wait until you have built enough credit to move to an unsecured card instead.
Does Chase offer a secured card with no annual fee?
Chase's secured card does charge an annual fee. If you want to avoid annual fees while building credit, you may want to compare other banks' secured card products. Some issuers offer lower fees or waive the first year, though terms change frequently.
How much should I deposit to start?
Start with the smallest amount you can afford to lock up for several months — typically $200 to $500. Your credit limit will match your deposit, so a smaller deposit means a smaller limit, but it is enough to build credit history. You can always deposit more later to increase your limit.
Will the secured card hurt my credit score when I explore?
explore for any credit card triggers a hard inquiry, which can lower your score slightly for a few months. However, the long-term benefit of building payment history outweighs this small temporary dip. After several months of on-time payments, your score will typically be higher than it was before you applied.