Best Egg is a credit card for people rebuilding credit after past mistakes

Best Egg offers a secured credit card — meaning you put down a cash deposit that becomes your credit limit. You get a card to use like any other, but the deposit stays frozen in a savings account while you build a payment history. Best Egg does not require a credit score to open an account, which makes it useful if you have no credit history or are recovering from a bankruptcy, missed payments, or collections.

The card charges an annual fee and interest rate that depend on your deposit amount and creditworthiness at the time you open the account. Unlike some secured cards, Best Egg does not automatically convert to an unsecured card after a set period — you have to request a review, and conversion is not may provide. This matters because it means you could be paying an annual fee indefinitely if your credit does not improve enough.

Key Takeaways

  • Best Egg requires a cash deposit between $500 and $5,000 that becomes your credit limit and stays frozen while you use the card.
  • The card reports to all three credit bureaus (Equifax, Experian, TransUnion), so on-time payments build your credit score over time.
  • You pay an annual fee ranging from $0 to $95 depending on your deposit size and credit profile at opening.
  • Best Egg does not automatically graduate you to an unsecured card — you must request a review after demonstrating responsible use.
  • Interest rates vary by applicant and are disclosed before you open the account, so compare the rate and fee against other secured cards before deciding.

How the deposit and credit limit work

When you open a Best Egg secured card, you choose a deposit amount between $500 and $5,000. That deposit becomes your credit limit — if you deposit $1,000, your limit is $1,000. The money sits in a savings account that earns a small amount of interest, but you cannot touch it while the card is open. This protects Best Egg if you stop paying your bill.

The deposit is not a fee — it is your own money. If you close the account in good standing (meaning no unpaid balance), Best Egg returns the full deposit to you. If you default on the card, Best Egg can use the deposit to cover what you owe before returning any remainder. This is why the deposit requirement exists: it lowers Best Egg's risk, which is why they can offer the card to people with poor or no credit history.

Annual fees and interest rates

Best Egg charges an annual fee that varies. The fee depends on your deposit size and your credit profile at the time you open the account. Smaller deposits ($500 to $1,000) may carry a higher annual fee, while larger deposits ($2,500 to $5,000) may have a lower fee or no fee at all. Best Egg discloses the exact fee before you confirm your process, so you see the cost upfront.

The interest rate (called the Annual Percentage Rate, or APR) also varies by applicant. Best Egg publishes a range, but your actual rate depends on factors like your credit history, income, and the deposit amount. If you carry a balance month to month, you pay interest on that balance at your APR. If you pay your full statement balance by the due date each month, you pay no interest. The rate and fee are both disclosed before you open the account, so you can compare them against other secured cards before deciding.

How Best Egg reports to credit bureaus

Best Egg reports your payment history to all three major credit bureaus: Equifax, Experian, and TransUnion. This means every on-time payment you make builds your credit score, and every late or missed payment hurts it. The reporting starts within the first month or two of opening the account, so you begin building credit history when ready.

The credit-building benefit is the main reason to use a secured card. Over 6 to 12 months of on-time payments, your credit score typically rises enough to open an unsecured card or a loan at a better rate. This is why the card works best if you plan to use it regularly and pay on time — sporadic use or late payments defeat the purpose.

Graduation to an unsecured card

Best Egg does not automatically convert your secured card to an unsecured card after a certain time period. Instead, you must request a review after you have demonstrated responsible use — typically 6 to 12 months of on-time payments. Best Egg then decides whether to graduate you based on your payment history and credit score at that time.

If Best Egg approves your graduation, your deposit is returned and you keep the card as an unsecured account. If they deny the request, you remain on the secured card and keep paying the annual fee. This is different from some competitors (like Capital One Secured or Discover Secured) that automatically review your account after a set period. With Best Egg, you have to take the step yourself, and there is no may provide of approval.

Comparing Best Egg to other secured cards

Best Egg competes with Capital One Secured, Discover Secured, and a few smaller issuers. The main differences are in annual fees, interest rates, and graduation policies. Capital One Secured has no annual fee but typically charges a higher interest rate. Discover Secured has no annual fee and reports to all three bureaus like Best Egg does. Both Capital One and Discover automatically review your account for graduation after a set period (usually 6 to 9 months), whereas Best Egg requires you to request a review.

The best choice depends on your situation. If you want no annual fee and automatic review, Capital One or Discover may suit you better. If you have a larger deposit and may have access to for a low or zero annual fee with Best Egg, and you are comfortable requesting a graduation review yourself, Best Egg is worth considering. The difference in cost and terms is usually small, so compare the specific rate and fee you are offered against what other issuers quote before deciding.

How to use a secured card to rebuild credit

A secured card only helps your credit if you use it responsibly. The goal is to show lenders that you can borrow money and pay it back on time. This means using the card for small, regular purchases (groceries, gas, a subscription) and paying the full balance by the due date each month. Paying in full avoids interest charges and shows perfect payment history to the credit bureaus.

Avoid maxing out the card or carrying a high balance. Credit bureaus look at your credit utilization — the percentage of your limit you are using at any given time. Using more than 30% of your limit can hurt your score, even if you pay on time. With a $1,000 limit, try to keep your balance below $300 at the time your statement closes. After 12 to 24 months of this pattern, your credit score should improve enough to open an unsecured card or refinance existing debt at a better rate.

Frequently Asked Questions

Can I get my deposit back before closing the account?

No. Your deposit stays frozen for the life of the account. You can only recover it by closing the account in good standing (no unpaid balance). Some issuers allow you to increase your deposit to raise your credit limit, but you cannot withdraw part of it.

What happens if I miss a payment?

A missed payment is reported to all three credit bureaus and damages your credit score. If you are 60 days late, Best Egg may use your deposit to cover the debt. If you are 180 days late, the account may be charged off and sent to collections. Missing payments defeats the purpose of the card, which is to build a positive payment history.

Does Best Egg offer a rewards program?

Best Egg's secured card does not earn cash back or points on purchases. The card is designed for credit building, not rewards. Once you graduate to an unsecured card, you may be offered a different product with rewards, but the secured card itself has no rewards feature.

How long does it take to build credit with this card?

Most people see a measurable improvement in their credit score within 3 to 6 months of on-time payments. Significant improvement (enough to open an unsecured card) usually takes 12 to 24 months, depending on how damaged your credit was at the start. The timeline varies by individual and by how much negative history you are recovering from.

Can I use Best Egg if I have an active collection account?

Best Egg does not explicitly bar applicants with collections, but approval is not may provide. Collections are a major red flag to lenders. Your best chance is to settle or pay off the collection before opening the card, or to explain the circumstances when you explore. Even if approved, the collection will continue to hurt your score until it ages off your report (typically 7 years from the original missed payment).