What the Navy Federal Secured Card Does
The Navy Federal Secured Credit Card is a credit-building tool for military members and their families who have limited credit history or are rebuilding after past credit problems. You put down a cash deposit — typically between $500 and $2,500 — and that deposit becomes your credit limit. You use the card like any other credit card, paying a monthly bill. Navy Federal reports your payments to the three credit bureaus, which builds your credit score over time.
The deposit stays in a separate account and is not touched unless you stop paying your bill. After you demonstrate responsible use — usually 12 to 18 months of on-time payments — Navy Federal may convert the card to an unsecured card and return your deposit. Some cardholders graduate to a higher credit limit without needing a larger deposit.
Key Takeaways
- You must be a Navy Federal member to open this card, which means you need military affiliation or may be able to access through a family member.
- Your cash deposit becomes your credit limit, and the card reports to all three credit bureaus each month to build your credit score.
- Navy Federal charges an annual fee (the exact amount varies by membership tier) and a standard interest rate that depends on your creditworthiness at the time you open the account.
- After 12 to 18 months of on-time payments, you may be able to convert to an unsecured card and recover your deposit.
- The card works best if you use it for small, regular purchases and pay the full balance each month to avoid interest charges.
Who Can Open a Navy Federal Secured Card
You must be a Navy Federal Credit Union member to open this card. Membership is open to active-duty military, retirees, veterans, Reserve and National Guard members, and their families. If you are not currently a member, you can open a membership account online or at a branch — membership itself is free.
Navy Federal does not publish a minimum credit score requirement for the secured card, but the card is designed for people with little or no credit history or those rebuilding after missed payments or collections. If you have been denied for unsecured cards in the past, the secured card is a realistic next step.
Deposit Amount and Credit Limit
Your deposit and credit limit are the same amount. Navy Federal allows deposits ranging from $500 to $2,500. You choose the amount when you open the account. A smaller deposit ($500 to $750) is enough to start building credit; a larger deposit gives you more room to spend and demonstrates stronger commitment to the lender.
The deposit earns no interest and sits in a savings account held by Navy Federal. You cannot withdraw it while the card is active, but you can close the card and recover the full amount at any time. If you miss payments, Navy Federal may use the deposit to cover the debt before reporting the delinquency to credit bureaus.
Fees, Interest Rates, and Terms
Navy Federal charges an annual fee for the secured card. The amount depends on your membership tier — standard members pay one rate, and members who maintain a higher balance or meet other criteria may pay less or nothing. Check your membership status and the current fee schedule on the Navy Federal website or by calling their member services line.
The interest rate (called the Annual Percentage Rate, or APR) is set based on your credit profile at the time you open the account. Navy Federal does not publish a standard rate for the secured card, so rates vary by person. If you carry a balance, you will pay interest on the amount owed. Paying the full balance each month avoids interest entirely.
The card also has a grace period — typically 25 days from the statement date — during which no interest accrues on new purchases if you pay the full balance by the due date.
How the Card Builds Your Credit Score
Navy Federal reports your account activity to Equifax, Experian, and TransUnion — the three major credit bureaus. Each month, the bureaus receive information about your credit limit, current balance, and whether you paid on time. This information is used to calculate your credit score.
To build credit effectively, use the card for small purchases you can afford to pay off each month. Charging $50 to $100 and paying it in full shows lenders you can manage credit responsibly. Maxing out the card or carrying a large balance hurts your score, even if you pay on time. Late payments damage your score significantly and can trigger the deposit to be used against the debt.
Credit bureaus also track how long you have had the account. Keeping the card open for at least a year — even after it converts to unsecured — helps your score by showing a longer credit history.
Converting to an Unsecured Card
After 12 to 18 months of on-time payments, Navy Federal reviews your account for conversion to an unsecured card. You do not have to request this; Navy Federal initiates the review automatically. If approved, the card converts, your deposit is returned to you, and your credit limit may stay the same or increase.
Conversion is not may provide. If you have missed payments, carried a very high balance, or had other credit problems during the secured period, Navy Federal may decline to convert. In that case, the card remains secured until you demonstrate more time with responsible use.
Some cardholders choose to keep the secured card even after conversion is offered, because the lower credit limit helps them control spending. There is no penalty for keeping it secured.
Alternatives if You Cannot Open a Navy Federal Account
If you do not have military affiliation and cannot join Navy Federal, other credit unions and banks offer secured cards with similar terms. Capital One Secured MasterCard, Discover Secured Card, and cards from local credit unions are common alternatives. These cards work the same way — deposit becomes limit, payments build credit — but may have different fees and terms.
If you are rebuilding credit after a serious problem like bankruptcy or foreclosure, a secured card is usually the fastest path to an unsecured card. Unsecured cards for people with poor credit typically charge much higher interest rates and fees, making them more expensive than a secured card over time.
Frequently Asked Questions
Can I use the Navy Federal secured card overseas?
Yes. Navy Federal secured cards work internationally and carry the Mastercard logo, so they are accepted anywhere Mastercard is taken. Navy Federal charges a foreign transaction fee (typically 1% of the purchase amount) for transactions outside the United States. Check your cardholder agreement for the exact fee.
What happens if I miss a payment on the secured card?
A missed payment is reported to credit bureaus and damages your credit score. Navy Federal may also use your deposit to cover the missed payment and any fees. Late payments can delay or prevent conversion to an unsecured card. If you miss a payment, contact Navy Federal when ready to discuss options.
Can I increase my credit limit without adding more money?
After you convert to an unsecured card, Navy Federal may increase your limit without requiring a larger deposit. While the card is secured, your limit is tied to your deposit, so increasing the limit requires increasing the deposit. Some members add to their deposit over time to raise their limit.
Do I need to use the card every month to build credit?
No, but regular use is more effective. Using the card once or twice a month and paying the full balance shows consistent, responsible behavior. Leaving the card unused for months at a time does not hurt your score, but it also does not help it grow as quickly. Navy Federal may close inactive accounts after a long period of no use.
What is the difference between the secured card and Navy Federal's regular credit cards?
The main difference is the deposit. Unsecured cards do not require a deposit and are open to people with established credit. The secured card is designed for people building credit from scratch or recovering from credit problems. Once you convert to unsecured, the terms and benefits are similar to Navy Federal's other cards.