Yes, Chase offers secured credit cards, but only through specific products
Chase offers the Chase Secured Credit Card, which is designed for people building or rebuilding credit. 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 credit bureaus.
This is different from a regular credit card, where the bank extends you credit based on your income and credit history. A secured card works backwards: you provide the security first, then prove you can use credit responsibly. After you've shown a track record of on-time payments — usually 6 to 18 months — Chase may convert your account to an unsecured card and return your deposit.
The catch is that Chase's secured card is not available to everyone who walks in. You need to meet basic requirements, and the card comes with an annual fee. Understanding how it works and what it costs will help you decide if it's the right move for your situation.
Key Takeaways
- Chase's secured card requires a cash deposit between $500 and $25,000 that serves as your credit limit.
- The card charges an annual fee (currently $39) and a variable interest rate, so carrying a balance costs money.
- You must have a Chase checking or savings account to open the secured card.
- On-time payments are reported to all three credit bureaus, which is how the card helps build your credit history.
- After demonstrating responsible use, you may be converted to an unsecured card and your deposit returned.
How the Chase Secured Credit Card deposit works
Your deposit is held in a separate savings account at Chase and earns a small amount of interest. The deposit amount becomes your credit limit — you cannot spend more than what you've deposited. Chase does not use your deposit to pay your bill if you miss a payment; instead, they report the missed payment to credit bureaus just like they would with any other card.
The deposit stays locked for as long as your account is secured. You cannot withdraw it while the card is active. If you close the account or it gets converted to unsecured, Chase returns the deposit to the savings account you designated when you opened the card.
One important detail: Chase requires you to have an existing Chase checking or savings account before you can open the secured card. If you don't have one, you'll need to open that first. This is a real requirement, not a suggestion — Chase will not issue the secured card without it.
Costs and interest rates on the secured card
The annual fee is $39, charged once per year. This is a flat cost regardless of how much you use the card. On top of that, the card carries a variable interest rate, which means the rate can change over time. The actual rate you receive depends on your creditworthiness at the time you open the account.
If you carry a balance from month to month, interest accrues daily on that balance. For example, if you have a $300 balance at 20% APR, you'll pay roughly $5 in interest that month. The best way to avoid interest charges is to pay your full statement balance by the due date each month — this is also what helps build your credit most effectively.
There are no foreign transaction fees, which can be useful if you travel or shop internationally. There's also no penalty APR (a higher rate applied if you miss a payment), though a missed payment will still damage your credit and be reported to the bureaus.
What credit history you need to open the account
Chase does not publish exact credit score requirements for the secured card, but the card is designed for people with limited or damaged credit. You may be considered if you have no credit history at all, a low credit score, or a history of missed payments that you're working to overcome.
The process process is the same as for any Chase credit card: you provide your Social Security number, income, employment status, and other financial information. Chase runs a hard inquiry on your credit report, which temporarily lowers your score by a few points. If you're denied, you can ask Chase why and reapply later if your situation improves.
Having an existing Chase checking or savings account may improve your chances of approval, since Chase already has some financial history with you. But it's not a may provide — Chase still evaluates your overall credit profile.
How using the secured card builds your credit
Every payment you make on the secured card gets reported to Equifax, Experian, and TransUnion — the three major credit bureaus. This reporting is what allows the card to help build your credit history. The bureaus track whether you pay on time, how much of your limit you use, and how long you've had the account open.
Payment history is the single largest factor in your credit score, so making on-time payments every month is the most important thing you can do. Using only a small portion of your credit limit — ideally under 30% — also helps. If you deposit $500 and keep your balance under $150, you're showing that you can use credit responsibly without maxing out.
The longer you keep the account open and make on-time payments, the more your credit improves. Most people see meaningful improvement within 6 to 12 months of consistent, responsible use. This improvement opens doors to better credit cards, lower interest rates on loans, and sometimes even better terms on insurance or rental applications.
When Chase converts your account to unsecured
Chase does not have a set timeline for converting secured accounts to unsecured. Some customers see conversion offers after 6 months of on-time payments; others wait 18 months or longer. The decision depends on how your credit profile has improved and how Chase evaluates your account.
You don't have to wait for Chase to offer conversion — you can request it yourself after you've had the card for a while and made consistent on-time payments. Call the number on the back of your card and ask about conversion. Chase will review your account and either convert it or tell you to check back later.
When your account is converted, the annual fee may change, your interest rate may change, and your credit limit may increase. Most importantly, your deposit is returned to your savings account. You'll then have a regular unsecured credit card that works like any other Chase card.
Alternatives if you don't may have access to or prefer another option
If Chase denies you or you prefer not to use a secured card, other banks offer secured cards with different terms. Some have lower deposits, lower annual fees, or easier approval standards. Capital One, Discover, and Bank of America all offer secured cards worth comparing.
Another path is a credit-builder loan, offered by some credit unions and online lenders. With a credit-builder loan, you borrow a small amount (usually $500 to $1,000) and make monthly payments. The lender reports your payments to credit bureaus, helping you build history without the annual fee of a credit card.
If you have a family member or friend willing to add you as an authorized user on their existing credit card, that can also help build your credit — though you won't be responsible for payments and the primary cardholder bears the risk. Each path has trade-offs, and the right choice depends on your situation and what you're trying to accomplish.
Frequently Asked Questions
Can I use my secured card deposit as my credit limit right away?
Yes. Once your account opens, your deposit becomes your available credit when ready. You can use the card up to that limit the same day. There's no waiting period or gradual increase — the full deposit amount is your limit from day one.
What happens if I miss a payment on the secured card?
A missed payment is reported to all three credit bureaus and damages your credit score. Chase will not automatically take the payment from your deposit — you're responsible for paying. Late fees explore, and if you miss payments repeatedly, Chase may close the account and keep your deposit to cover the debt.
Can I increase my credit limit without adding more money?
Not on a secured card. Your limit is tied directly to your deposit. If you want a higher limit, you must deposit more money. Once your account converts to unsecured, Chase may increase your limit based on your payment history and creditworthiness.
How long does it take to get approved for the Chase secured card?
Chase typically makes a decision within a few minutes to a few hours of your process. If approved, your card arrives by mail within 7 to 10 business days. You can start using it as soon as it arrives.
Will the secured card help my credit score when ready?
Opening the account causes a small, temporary dip in your score because of the hard inquiry. But as you make on-time payments over the following months, your score should begin to improve. Most people see meaningful gains within 6 to 12 months of consistent use.