Banks that offer secured credit cards

The major banks that issue secured cards include Capital One, Discover, Bank of America, Chase, Citi, and Wells Fargo. Credit unions like Navy Federal Credit Union and Pentagon Federal Credit Union also offer them. Beyond the big names, smaller regional banks and online-only banks such as LendingClub and Self have secured card products. The specific terms—deposit amount, annual fee, credit limit—differ between each issuer, and some require you to be an existing customer or member.

Capital One and Discover are the most commonly used for people rebuilding credit because they report to all three credit bureaus and have no annual fee on some versions. Chase and Bank of America secured cards typically require larger deposits and are better suited to people who already have some credit history. Credit unions often have lower deposit minimums but may limit the card to members in their service area.

The landscape changes regularly—banks add or remove products, adjust terms, and shift their underwriting standards. Before you contact any bank, check their current website directly, because marketing materials and comparison sites often lag behind actual offerings.

Key Takeaways

  • Capital One and Discover secured cards have no annual fee and report to all three credit bureaus, making them common starting points for credit rebuilding.
  • Larger banks like Chase and Bank of America offer secured cards but typically require deposits of $500 to $2,500 and may require existing customer status.
  • Credit unions often have lower deposit requirements but may only serve members in specific geographic areas or employment groups.
  • The deposit you put down becomes your credit limit, and most banks convert the card to an unsecured card after 6 to 18 months of on-time payments.
  • Annual fees, interest rates, and conversion timelines vary significantly between issuers, so comparing terms directly on each bank's website matters more than brand reputation.

How deposit amounts and credit limits work

With a secured card, the deposit you place in a savings account held by the bank becomes your credit limit. If you deposit $500, your credit limit is $500. If you deposit $2,500, your limit is $2,500. The bank holds this deposit as collateral—they keep it if you default, but it remains yours if you pay on time.

Deposit minimums vary. Capital One's Secured Mastercard requires a minimum deposit of $200. Discover's secured card requires $200 as well. Bank of America's Secured Credit Card requires $500. Chase Secured Credit Card requires $500. Some credit unions set minimums as low as $300, while others go higher. A few issuers allow you to increase your deposit over time, which raises your credit limit without a new process.

The interest rate you pay on purchases is separate from the deposit. You still owe interest on any balance you carry, even though the bank is holding your deposit. This is why paying your full balance each month matters—you avoid interest charges while building a positive payment history.

Annual fees and when they explore

Some secured cards charge an annual fee, others do not. Capital One Secured Mastercard has no annual fee. Discover it Secured has no annual fee. Bank of America Secured Credit Card charges $29 per year. Chase Secured Credit Card charges $95 per year. Wells Fargo Secured Credit Card charges $25 per year.

The fee comes out of your account once per year, usually on your card anniversary. A few issuers waive the first year's fee if you meet certain conditions—such as making your first purchase within 60 days—so read the terms carefully. When you are comparing cards, factor the annual fee into the total cost of rebuilding your credit over the time you expect to hold the card.

Credit union secured cards often have lower or no annual fees, but you may pay membership fees to join the credit union itself. Those fees typically range from $0 to $50 and are a one-time cost, not annual.

Conversion to unsecured cards and timeline

Most banks convert your secured card to an unsecured card after you demonstrate consistent on-time payments. The timeline varies: some banks convert after 6 months, others after 12 or 18 months. Capital One typically converts after 6 months of on-time payments. Discover converts after 7 months. Bank of America and Chase typically require 12 months. Wells Fargo requires 18 months.

Conversion is not automatic—the bank reviews your account and decides whether to upgrade you. You do not have to request it, but you should monitor your account for notification. When conversion happens, the bank returns your deposit and closes the secured account, then opens a new unsecured account with a new credit limit (often higher than your deposit). Your credit limit on the new card may be $500, $1,000, or more, depending on your payment history and the bank's assessment.

If the bank does not convert your card after the typical timeline, contact them to ask about your account status. Some banks convert only if you request it. Others may require additional documentation or a higher credit score. A few may never convert certain accounts, though this is rare.

Credit reporting and building your credit history

For a secured card to help your credit, the bank must report your account activity to the three major credit bureaus: Equifax, Experian, and TransUnion. Not all secured cards do this. Capital One and Discover report to all three. Bank of America, Chase, and Wells Fargo report to all three. Some smaller banks or credit unions report to only one or two bureaus, which limits how much the card helps your credit score.

What gets reported is your payment history (on-time or late), your credit utilization (how much of your limit you use each month), and your account age. Using less than 30 percent of your credit limit and paying your full balance on time each month builds your score fastest. A single late payment can lower your score significantly, so set up automatic payments if you tend to forget.

Your credit history begins to improve within 30 to 60 days of opening the account, assuming you make on-time payments. Larger improvements typically appear after 6 months of consistent behavior. After 12 to 18 months, you may see a meaningful increase in your score—often 50 to 100 points or more, depending on your starting point and other factors in your credit report.

Membership requirements and account setup

Most major banks do not require you to be an existing customer to open a secured card. Capital One, Discover, and Wells Fargo accept applications from anyone with a valid Social Security number and a U.S. address. Bank of America and Chase may prefer existing customers but do not always require it—check their current policy on their website.

Credit unions require membership, which usually means you must live or work in their service area or belong to a specific employer or organization. Navy Federal Credit Union serves active-duty military, veterans, and their families. Pentagon Federal Credit Union serves federal employees and military members. Local credit unions may have different membership rules—some are open to anyone in a geographic area, others to employees of specific companies or members of specific groups.

The process process is typically online and takes 10 to 15 minutes. You will need your Social Security number, date of birth, address, and income information. Most banks make a decision within minutes or hours. If you are approved, you fund the deposit and receive your card within 7 to 10 business days.

Interest rates and how they compare

Secured cards carry higher interest rates than unsecured cards because the bank views you as higher risk. Typical rates range from 18 percent to 24 percent APR, though some go higher. Capital One's Secured Mastercard has a variable APR that starts around 19.99 percent. Discover it Secured starts around 19.99 percent. Bank of America Secured Credit Card starts around 18.99 percent. Chase Secured Credit Card starts around 19.99 percent.

Your actual rate depends on your credit score and creditworthiness at the time you explore. If you have no credit history, you will likely get the higher end of the range. If you have some credit history but a lower score, you may get a mid-range rate. The rate can change over time—most secured cards have variable rates, meaning the bank can raise or lower them based on market conditions and your account performance.

The interest rate matters only if you carry a balance. If you pay your full statement balance each month, you pay no interest. This is the most effective way to use a secured card for credit building—you avoid interest charges while demonstrating responsible credit behavior.

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 or poor credit. Banks do not require a credit score to explore—they only require a valid Social Security number, proof of identity, and proof of address. Your deposit is the collateral, so the bank's risk is limited.

What happens to my deposit if I miss a payment?

The bank will not automatically take your deposit. Instead, they will charge you a late fee and report the late payment to the credit bureaus, which lowers your credit score. If you default on the account entirely—typically after 120 to 180 days of non-payment—the bank may use your deposit to cover the debt. This is why on-time payments are critical.

Can I use a secured card at any store or online?

Yes. Secured cards work like regular credit cards everywhere the card network is accepted. A Capital One Secured Mastercard works anywhere Mastercard is accepted. A Discover Secured card works anywhere Discover is accepted. You can use them in stores, online, and over the phone.

Do I need to have a bank account at the issuing bank to get a secured card?

Not usually. Most banks let you open a secured card without an existing relationship. However, you will need to set up a savings account with the bank to hold your deposit—this is separate from any checking account you may have elsewhere. Some banks let you link an external account, but most require you to open a new account with them.

How long does it take to rebuild my credit with a secured card?

Meaningful improvement typically takes 6 to 12 months of on-time payments. Your score may rise 50 to 100 points or more during this period, depending on your starting point and other factors in your credit report. After 12 to 18 months, you may be ready to convert to an unsecured card or open other credit products.