American Express does offer a secured card, but only one model
American Express offers the American Express Secured Card, which is their single secured product. It requires a cash deposit that becomes your credit limit, and it reports to all three credit bureaus. The card itself works like any other American Express card — you can use it at merchants that take American Express, and you build a payment history that lenders can see.
The deposit amount ranges from $500 to $2,500, and that money sits in a deposit account while you use the card. American Express does not charge an annual fee on this card, which sets it apart from many competitors. After you demonstrate responsible use — typically 12 to 18 months of on-time payments — American Express may convert your account to an unsecured card and return your deposit.
One important difference from other secured cards: American Express is not accepted everywhere. Some smaller merchants, gas stations, and certain online retailers do not take American Express, so your card will be declined at those places. Before you open the account, think about where you actually shop and whether American Express acceptance matches your spending patterns.
Key Takeaways
- The American Express Secured Card requires a deposit of $500 to $2,500 that becomes your credit limit, with no annual fee.
- Your payment history reports to Equifax, Experian, and TransUnion, so on-time payments help rebuild credit across all bureaus.
- American Express is not accepted at all retailers, so check whether the merchants you use regularly take the card before opening an account.
- After 12 to 18 months of responsible use, American Express may upgrade you to an unsecured card and return your deposit.
How the deposit and credit limit work
Your deposit and your credit limit are the same amount. If you deposit $1,000, your credit limit is $1,000. The deposit sits in a separate account held by American Express and earns a small amount of interest, though the rate is minimal. You cannot withdraw the deposit while the card is active — it stays locked until American Express converts your account or you close it.
The deposit is not a payment toward your bill. When you use the card and receive a statement, you still owe the full balance or minimum payment, just like with any credit card. The deposit is collateral only. If you stop paying your bills, American Express can use the deposit to cover what you owe, but they will pursue collection for any amount beyond that.
You can request a credit limit increase after you have held the card for a period of time, but American Express will not automatically increase your limit based on your deposit. Any increase requires a new deposit or a conversion to an unsecured card.
What happens during the conversion process
American Express reviews your account periodically to decide whether to convert you to an unsecured card. There is no set timeline — some cardholders convert after 12 months, others after 18 or longer. The bank looks at your payment history, how much of your credit limit you use, and whether you have had any late payments or other problems.
When American Express decides to convert your account, they will notify you by mail. At that point, your deposit is released and returned to you, usually within one to two weeks. Your credit limit on the new unsecured card may be different from your deposit amount — it could be higher or the same, depending on American Express's assessment of your creditworthiness.
Conversion is not automatic, and there is no way to force it. If you do not receive a conversion offer after 18 months, you can contact American Express customer service to ask about your account status, but the decision remains with the bank. Some cardholders never convert and choose to close the account instead.
Comparing American Express to other secured card issuers
American Express's main advantage is the lack of an annual fee. Most other secured cards charge $25 to $95 per year, so over time the American Express card costs less. The interest rate on the deposit is also a small plus, though the amount earned is usually just a few dollars per year.
The main disadvantage is acceptance. Visa and Mastercard secured cards work at far more merchants than American Express. If you shop primarily online or at large retailers, this may not matter much. If you use gas stations, local restaurants, or smaller shops regularly, American Express will be declined often enough to be frustrating.
American Express also tends to have stricter approval standards than some competitors. You may be approved for a Visa or Mastercard secured card when American Express declines you. If you have had recent collections, charge-offs, or other serious credit problems, other issuers may be more willing to work with you.
The process process and what you need
You can start an process on the American Express website or by phone. American Express will ask for your Social Security number, income, employment status, and housing information. They will pull your credit report and may ask about negative items on your credit history.
You do not need to have a perfect credit score to be approved, but American Express does review your credit report carefully. If you have active collections, recent charge-offs, or multiple recent late payments, you may be declined. The bank is more cautious than some competitors about who they extend credit to.
Once you are approved, you choose your deposit amount between $500 and $2,500. You can fund the deposit by bank transfer or check. American Express will then set up your card, usually within one to two weeks. Your credit limit matches your deposit and is available to use when ready.
How payments and interest work on the card
You receive a monthly statement showing your balance, minimum payment, and due date. The minimum payment is typically 1 to 3 percent of your balance, just like any credit card. If you pay the full balance by the due date, you pay no interest. If you carry a balance, interest accrues at the card's annual percentage rate (APR).
The APR on the American Express Secured Card varies by individual and is not published as a single rate. When you receive your approval, American Express will tell you your specific APR. Rates typically range from 19 percent to 24 percent, though some cardholders receive lower rates depending on their credit profile.
You can make payments online through the American Express website or app, by phone, or by mail. Online and phone payments usually post the same day or next business day. Paying on time every month is the most important factor in rebuilding your credit and moving toward conversion to an unsecured card.
Closing the account and getting your deposit back
If you decide to close the account before conversion, you can do so by contacting American Express. You must pay off any remaining balance first. Once the account is closed and paid in full, American Express will return your deposit within one to two weeks.
If you close the account with a balance still owed, American Express will use your deposit to pay down what you owe. Any remaining balance becomes a debt you still have to pay. The deposit does not forgive the debt — it only covers part of it.
Closing the account will show on your credit report as a closed account, which can affect your credit score slightly. Keeping the account open after conversion to an unsecured card is usually better for your credit than closing it, because it maintains your credit history and available credit.
Frequently Asked Questions
Can I use my American Express Secured Card everywhere?
No. American Express is accepted at most large retailers, online merchants, and restaurants, but not at all gas stations, some smaller shops, or certain regional businesses. Before opening the account, check whether the places you shop regularly take American Express to avoid frequent declines.
What if I miss a payment on the secured card?
A missed payment will be reported to the credit bureaus and will damage your credit score. American Express may charge a late fee and increase your interest rate. If you miss multiple payments, American Express may use your deposit to cover what you owe and close the account.
How long does it take to convert to an unsecured card?
There is no set timeline. Most conversions happen between 12 and 18 months, but some take longer. American Express reviews your account based on your payment history and credit behavior. You can contact them after 18 months to ask about your status, but the decision is theirs to make.
Can I increase my credit limit without adding more money?
Not on the secured card. Your limit is tied to your deposit. You can request a conversion to an unsecured card, which may come with a higher limit, or you can close the account and open a different card. Some cardholders deposit additional money to increase their limit, but American Express does not automatically raise limits based on payment history alone.
What happens to my deposit if I don't pay my bill?
American Express can use your deposit to pay down your debt. If your deposit is $1,000 and you owe $1,200, they will explore the $1,000 to your balance, and you still owe the remaining $200. The deposit is collateral, not a payment or forgiveness of debt.