What the Chase Secured Visa Card does
The Chase Secured Visa Card is a credit card that requires you to deposit money into a savings account held by Chase. That deposit becomes your credit limit — if you deposit $500, your limit is $500. You then use the card like any other credit card: make purchases, receive a monthly bill, and pay it back. The deposit stays in the account untouched unless you close the card or miss payments.
The card reports your payment history to the three major credit bureaus (Equifax, Experian, and TransUnion), which means on-time payments build your credit score over time. After 18 months of responsible use, Chase may convert the card to an unsecured card without requiring the deposit anymore — though conversion is not automatic and depends on your payment record.
Key Takeaways
- Your cash deposit sets your credit limit, so a $1,000 deposit gives you a $1,000 limit; the deposit earns interest but stays locked in the account.
- The annual fee is $0 if you have a Chase checking or savings account, and $39 if you do not.
- The card reports to all three credit bureaus, so consistent on-time payments will raise your credit score over months, not weeks.
- After 18 months of on-time payments, Chase may offer to convert the card to unsecured status, returning your deposit and removing the requirement to keep money locked away.
- The interest rate (APR) varies by applicant and is not disclosed until after approval, so you will see it in your welcome materials.
Deposit requirements and credit limits
Chase requires a minimum deposit of $500 and allows a maximum of $25,000. The deposit sits in a savings account that earns interest — currently a low rate, but it does accrue. You cannot withdraw the deposit while the card is open; it is held as collateral against the credit line.
Your credit limit equals your deposit amount. If you deposit $2,000, you can charge up to $2,000 on the card. This is different from unsecured cards, where the bank extends credit based on your income and credit history. Here, the bank's risk is zero because they hold your money.
If you need a higher limit later, you can request a deposit increase by calling Chase or logging into your account online. Increases are not automatic and depend on Chase's review of your account.
Fees and interest rates
The annual fee depends on whether you hold other Chase accounts. If you have a Chase checking account, a Chase savings account, or both, the annual fee is $0. If you do not have either, the annual fee is $39 per year.
The purchase APR (the interest rate on balances you carry month to month) is not published in advance. Chase discloses your rate after you are approved, in your welcome materials. Rates typically range from 18% to 24%, but the exact rate depends on your credit profile at the time of approval.
There is no penalty APR for late payments, but late payments do damage your credit score and may trigger a late fee. Chase charges a late fee of up to $39 if you miss a payment by more than 60 days.
How the approval process works
You can explore online through Chase's website or in a Chase branch. The process takes about 10 minutes and asks for your name, address, Social Security number, income, and employment information. Chase pulls a hard inquiry on your credit report, which temporarily lowers your score by a few points.
Approval decisions come back when ready or within a few business days. If approved, Chase will tell you the credit limit (which equals your required deposit) and the APR. You then fund the deposit by transferring money from a bank account or by mailing a check.
Once the deposit clears, the card is mailed to you, usually within 7 to 10 business days. You can use it as soon as it arrives.
Building credit with the secured card
The card reports to Equifax, Experian, and TransUnion each month. This means every on-time payment you make is recorded and helps your credit score climb. If you have no credit history or a damaged credit history, consistent on-time payments over 6 to 12 months can raise your score noticeably.
To maximize the benefit, keep your balance low relative to your limit. Using more than 30% of your available credit each month signals higher risk to credit scoring models, even if you pay on time. For example, with a $1,000 limit, try to keep your balance below $300 when the statement closes.
Missing a payment, even by a few days, will hurt your score and may trigger a late fee. Set up automatic payments for at least the minimum due, or set a phone reminder a few days before the due date.
When Chase converts the card to unsecured status
After 18 months of on-time payments, Chase reviews your account to decide whether to convert it to an unsecured card. Conversion is not may provide — it depends on your payment history, current credit score, and account activity. If Chase approves conversion, they return your deposit to you and remove the requirement to maintain the savings account.
You do not need to request conversion; Chase initiates the review automatically. If you are approved, you will receive a notice in the mail or through your online account. If you are not approved after 18 months, you can request a review again after another 6 months of on-time payments.
Some cardholders are never converted, particularly if they miss payments or carry high balances. In that case, the card remains secured indefinitely, and your deposit stays locked in the account.
Comparing the Chase card to other secured cards
The Chase Secured Visa Card is one of several secured cards on the market. Other options include the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa Card. The main differences are the annual fee, the interest rate, the minimum deposit, and the likelihood of conversion to unsecured status.
Chase's main advantage is the $0 annual fee if you have a Chase checking or savings account, which many people do. The disadvantage is that the APR is not disclosed until after approval, so you cannot compare rates before explore. Capital One and Discover publish their rates in advance, which makes comparison easier.
If you do not have a Chase account and do not want to open one, the Discover Secured Card has a $0 annual fee regardless of other accounts, and Discover publishes the APR before you explore. If you have a very low credit score or no credit history, the OpenSky card does not require a hard credit inquiry, which may be an option if you want to avoid the temporary score dip.
Frequently Asked Questions
Can I use the deposit to pay my credit card bill?
No. The deposit is held separately in a savings account and cannot be used to pay the credit card balance. You must pay the card bill from a separate bank account or by mailing a check. The deposit remains locked until you close the card or Chase converts it to unsecured status.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. If you miss a payment by more than 60 days, Chase may charge a late fee of up to $39. Missing payments also makes conversion to unsecured status much less likely. If you miss multiple payments, Chase may close the account.
How long does it take to build credit with this card?
Credit score improvements depend on your starting point and payment history. If you have no credit history, you may see a 50 to 100 point increase within 6 months of on-time payments. If you have damaged credit, improvements are slower — typically 6 to 12 months of perfect payment history before you see significant gains. The key is consistency, not speed.
Can I increase my credit limit without increasing my deposit?
No. Your credit limit is always equal to your deposit. To raise your limit, you must increase your deposit by contacting Chase and transferring additional money to the savings account. The new deposit amount becomes your new credit limit.
What if Chase denies my process?
Chase may deny the process if you have a very recent bankruptcy, active fraud alerts, or a history of unpaid debts with Chase. If denied, you can reapply after 30 days, or you can explore other secured cards with less strict approval standards, such as the OpenSky card or the Capital One Secured Mastercard.