Where to find a secured card and what each bank requires
Secured credit cards come from traditional banks, credit unions, and online lenders. The major names — Capital One, Discover, and Chime — each run their own secured card program with different deposit amounts, fees, and paths to a regular card later. Smaller regional banks and credit unions often offer secured cards too, sometimes with lower deposits or no annual fee, but you may need to be a member first.
The deposit you put down becomes your credit limit, so a $500 deposit gives you a $500 limit. That money stays in a savings account at the bank while you use the card. Most banks hold the deposit for the life of the account unless you move to an unsecured card, which some do automatically after 18 months of on-time payments.
The real differences between banks show up in three places: how much you must deposit, whether there is an annual fee, and how quickly they report your payment history to the credit bureaus. A card that reports monthly and has no fee will build your credit faster than one with a $39 annual charge and quarterly reporting.
Key Takeaways
- Capital One, Discover, and Chime are the largest secured card issuers, but credit unions and regional banks often have lower deposit minimums or no annual fees.
- Your deposit becomes your credit limit and stays frozen at the bank; you cannot withdraw it while the account is open.
- Monthly reporting to all three credit bureaus matters more than the deposit amount, because it builds your credit history faster.
- Most banks move you to a regular unsecured card after 18 to 24 months of on-time payments, at which point your deposit is returned.
- Annual fees range from $0 to $39, and some banks waive the fee in the first year or if you maintain a higher deposit.
Major banks and their secured card terms
Capital One Secured Mastercard requires a deposit between $200 and $2,500 and charges a $29 annual fee. It reports to all three bureaus monthly. Capital One does not require you to be an existing customer, and the card has no foreign transaction fees. After six months of on-time payments, you may be moved to an unsecured card, though most people take longer.
Discover Secured Card requires a $200 minimum deposit and charges no annual fee. It also reports monthly to all three bureaus and includes cash back rewards — 2% at gas stations and restaurants, 1% elsewhere — which is unusual for a secured card. Discover does not require an existing account. The card comes with no foreign transaction fees and fraud protection.
Chime Secured Visa requires a $200 to $2,000 deposit and has no annual fee. Chime is an online bank, so you must open a Chime checking account first, which is free. The card reports to all three bureaus monthly. Chime also offers early direct deposit, which can move your paycheck in by two days.
U.S. Bank Secured Visa Card requires a $500 minimum deposit and charges a $29 annual fee. It reports monthly to all three bureaus. U.S. Bank requires an existing U.S. Bank checking or savings account, so this route works only if you already bank there or are willing to open an account.
Credit unions and regional banks
Credit unions often offer secured cards with lower deposits — sometimes $300 or less — and many charge no annual fee. Navy Federal Credit Union, for example, offers a secured card with a $250 minimum deposit and no annual fee, but you must be a member. Membership usually requires military service, family connection to someone in the military, or work in certain government roles.
Regional banks like PenFed Credit Union and Connexus Credit Union run secured card programs open to anyone who joins. Deposits are typically $300 to $500, and annual fees are rare. The trade-off is that these institutions may report less frequently or have smaller branch networks if you need in-person service.
To find a credit union near you, search the CO-OP Network or Allpoint ATM network, which tell you which institutions you can join. Many credit unions now allow online membership, so geography matters less than it once did.
What happens after you prove your credit history
Banks graduate secured cardholders to unsecured cards on different timelines. Capital One and Discover typically review your account after 6 to 18 months of on-time payments and may offer an unsecured card without asking. U.S. Bank and Chime usually wait 18 to 24 months. When you graduate, your deposit is returned to you — usually within 7 to 10 business days — and the card itself becomes a regular credit card with a new credit limit set by the bank.
Graduation is not automatic. You must make all payments on time, keep your balance low (under 30% of your limit is the standard benchmark), and not miss a payment or go over your limit. Some banks will also close your account if you do not use the card for several months, so occasional small purchases matter.
If you do not graduate after 24 months, contact the bank and ask what you need to do. Some banks require you to request the upgrade, and others have internal policies that vary by region or account type.
Comparing deposit requirements and fees
| Bank | Minimum Deposit | Annual Fee | Reports to Bureaus | Requires Existing Account |
|---|---|---|---|---|
| Capital One | $200 | $29 | Monthly, all three | No |
| Discover | $200 | $0 | Monthly, all three | No |
| Chime | $200 | $0 | Monthly, all three | Yes (free to open) |
| U.S. Bank | $500 | $29 | Monthly, all three | Yes |
| Navy Federal (members only) | $250 | $0 | Monthly, all three | Yes (membership required) |
How to choose between options
If you have no existing bank account and want the lowest barrier to entry, Discover or Chime are the clearest paths. Discover has no annual fee and no account requirement. Chime has no annual fee but requires opening a free checking account, which takes 10 minutes online.
If you are already a customer at U.S. Bank or another major bank, check whether they offer a secured card before opening a new account elsewhere. Staying with your existing bank simplifies your finances and may give you better terms as a current customer.
If you belong to a credit union, ask them first. Credit union secured cards often have lower deposits and no fees, and you are already a member. If your credit union does not offer one, Discover is the next logical choice because it has no fee and no account requirement.
The single most important factor is monthly reporting to all three credit bureaus. Every bank listed here does this, so you are not choosing between good and bad options — you are choosing between similar products with different convenience levels and costs.
Frequently Asked Questions
Can I use the deposit money while I have the card open?
No. The deposit sits in a separate savings account at the bank and is frozen for the life of the secured card. You cannot withdraw it, transfer it, or use it to pay your card bill. Once you graduate to an unsecured card or close the account, the bank returns the deposit to you.
What if I miss a payment on a secured card?
A missed payment is reported to all three credit bureaus and will damage your credit score, just as it would on a regular card. The bank may also charge a late fee (typically $25 to $35) and raise your interest rate. Missing a payment defeats the purpose of building credit, so set up automatic payments for at least the minimum.
Do I need good credit to get a secured card?
No. Secured cards are designed for people with no credit history or poor credit. Banks approve almost everyone because the deposit protects them — if you do not pay, they keep the money. You may still be denied if you have unpaid collections, a recent bankruptcy, or fraud on your record, but most people with bad credit will be approved.
How long does it take to build credit with a secured card?
Credit bureaus need at least six months of payment history to generate a credit score. After six months of on-time payments, you should see your score rise. Most people see meaningful improvement — 50 to 100 points — within 12 months if they also keep other balances low and do not explore for multiple cards at once.
Can I have more than one secured card?
Yes, but it is usually not necessary. One secured card with on-time payments builds credit just as well as two. Multiple cards mean multiple deposits, multiple annual fees, and more accounts to manage. Start with one card, graduate it to unsecured after 18 to 24 months, and then close it or keep it open with a $0 balance to maintain your credit history.