The Navi Credit Card is designed for people building or rebuilding credit
The Navi credit card is a secured credit card, meaning you put down a cash deposit that becomes your credit limit. If you have limited credit history, a low credit score, or past credit problems, this card lets you borrow against money you've already set aside. The card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so on-time payments build your credit record.
Unlike a prepaid card, which is just your own money sitting in an account, a secured credit card is actual credit. You borrow from the card issuer, make monthly payments, and pay interest if you carry a balance. That borrowing activity is what gets reported to credit bureaus and helps you build a credit score over time.
Key Takeaways
- Navi is a secured card that requires a cash deposit, typically between $250 and $2,500, which becomes your credit limit.
- The card charges an annual fee and interest on balances you don't pay in full each month, so carrying debt costs you money.
- On-time payments are reported to all three credit bureaus, which is the main reason to use this card if you're rebuilding credit.
- After 7 to 12 months of responsible use, you may be able to graduate to an unsecured card and get your deposit back.
How the deposit and credit limit work
You choose your deposit amount when you open the account. Navi's minimum deposit is typically $250, and the maximum is usually $2,500. Your credit limit equals your deposit — if you deposit $500, your limit is $500. The deposit stays in a separate account and earns a small amount of interest, but you cannot withdraw it while the card is open.
The deposit protects the card issuer if you stop paying. It is not a fee; it is your money. When you close the account or graduate to an unsecured card, you get the deposit back. Until then, it sits in the bank's account, not yours.
Fees and interest you will pay
Navi charges an annual fee, which varies but is typically in the $35 to $89 range depending on the card version. This fee is charged once per year, usually on your account anniversary. You also pay interest on any balance you carry from month to month. The interest rate (called the APR, or annual percentage rate) varies by applicant and current market conditions, but secured cards typically charge higher rates than unsecured cards — often between 18% and 24%.
If you pay your full statement balance by the due date each month, you pay no interest. The annual fee still applies, so the card costs money even if you use it responsibly. Some people view this as the price of building credit; others compare it to other secured cards to see if a lower fee is available elsewhere.
Building credit with on-time payments
The reason to use a secured card is that your payment history gets reported to credit bureaus. Every month you pay on time, that positive payment is recorded. After several months of on-time payments, your credit score should begin to rise. Credit bureaus weight recent payment history heavily, so the first six months matter most.
To maximize the benefit, keep your balance low — ideally under 30% of your credit limit. If your limit is $500, try to keep your balance under $150. This shows lenders you can borrow responsibly without maxing out your available credit. Pay at least the minimum by the due date every month, but paying the full balance is better because it avoids interest charges.
When you can graduate to an unsecured card
After you've used the card responsibly for 7 to 12 months, Navi may offer to convert it to an unsecured card. This means you no longer need the deposit, and your credit limit may increase. The deposit is returned to you, usually within a few weeks of the conversion. Not everyone is offered conversion at the same time — it depends on your payment history and credit score improvement.
You can also request conversion if you believe you're ready. Navi will review your account and decide whether to approve. If you're approved, you lose the annual fee and may get a lower interest rate. If you're not yet approved, keep making on-time payments and request again in a few months.
Comparing Navi to other secured cards
Several banks offer secured credit cards, and the terms vary. Some charge lower annual fees, some offer higher deposit limits, and some report to credit bureaus faster. Before opening a Navi card, compare it to cards from other issuers like Capital One, Discover, or your own bank. Look at the annual fee, the interest rate range, the minimum and maximum deposit, and whether the card reports to all three bureaus.
Also check whether the card offers any benefits — some secured cards offer cash back on purchases, which can offset the annual fee if you use the card regularly. Navi's specific benefits change over time, so visit the official Navi website or call their customer service to confirm current terms before you decide.
What happens if you miss a payment
If you miss a payment, Navi will charge a late fee and report the missed payment to credit bureaus. A single missed payment can lower your credit score by 50 to 100 points or more, depending on your current score. The damage is worst in the first six months, when payment history is most important to lenders.
If you know you'll miss a payment, contact Navi before the due date. Some issuers will work with you on a payment plan or may waive a late fee if you've been a good customer. After you miss a payment, the late fee is automatic, but you can still call and ask whether it can be removed. The sooner you pay the overdue balance, the better.
Frequently Asked Questions
Can I use a secured card if I have no credit history?
Yes. Secured cards are designed for people with no credit history, low scores, or past problems. You don't need an existing credit score to open one. The card issuer only checks that you can afford the deposit and that you don't have a history of fraud or identity theft.
What's the difference between a secured card and a prepaid card?
A secured card is credit — you borrow money and make payments, which get reported to credit bureaus. A prepaid card is just your own money loaded onto a card, like a gift card. Prepaid cards don't build credit because there's no borrowing or payment history to report.
Will my deposit earn interest?
Yes, Navi's deposit account typically earns a small amount of interest, though the rate is low — often less than 1% per year. The interest is added to your deposit account and returned to you when you close the card or graduate to unsecured status.
How long does it take to build credit with a secured card?
You should see credit score improvement within 3 to 6 months of on-time payments, though the exact timeline depends on your starting score and credit history. After 12 months of responsible use, most people see meaningful improvement and may be ready to graduate to an unsecured card.
Can I increase my credit limit without adding more money?
Some issuers allow you to request a credit limit increase after several months of on-time payments, without increasing your deposit. Navi's policy on this varies, so contact them directly to ask. Increasing your deposit will always increase your limit, but that's optional.