What You Need Before You Start
Navy Federal Credit Union issues the Navy Federal Secured Visa Card to people who are members of the credit union and have a deposit account with them. You cannot open the card without first becoming a Navy Federal member and opening a savings or checking account — the credit union requires both before they will consider your process.
Membership at Navy Federal is restricted to active-duty military, veterans, retirees, Reserve and Guard members, Department of Defense civilians, and their families. If you fall into one of these categories, you can join online or at a branch. The membership process itself takes a few minutes and costs nothing.
Once you are a member with an open deposit account, you will need your Social Security number, a government-issued ID, and proof of your current address (a utility bill, lease, or bank statement dated within the last 60 days). You should also know your annual income, though Navy Federal does not require proof of income at the process stage.
Key Takeaways
- You must be a Navy Federal member with an active deposit account before you can explore for the secured card.
- The secured card requires a cash deposit that becomes your credit limit, typically ranging from $500 to $2,500 depending on what you deposit.
- Navy Federal reports your payment history to all three credit bureaus, so on-time payments will build your credit score over time.
- After 12 to 18 months of on-time payments, you may be able to convert the card to an unsecured card and recover your deposit.
How the Secured Card Deposit Works
The secured card works by holding your cash deposit as collateral. You choose how much to deposit — Navy Federal's minimum is $500 and the maximum is $2,500. Whatever amount you deposit becomes your credit limit. If you deposit $1,000, you get a $1,000 credit limit.
The deposit sits in a separate savings account at Navy Federal and earns a small amount of interest. You cannot withdraw it while the card is active, but you are not paying a fee to hold it. The card itself carries an annual fee of around $25, which Navy Federal deducts from your deposit account, not from the secured savings account.
You use the card like any other credit card — swipe it, pay the bill each month, and your payment history gets reported to Equifax, Experian, and TransUnion. The goal is to show 12 to 18 months of on-time payments, after which Navy Federal may convert your card to an unsecured card and return your deposit to you.
The process Process Step by Step
Start by logging into your Navy Federal online account or visiting a branch. If you are explore online, go to the credit cards section and select the Navy Federal Secured Visa Card. You will answer questions about your income, employment, and housing status. Navy Federal will pull your credit report at this point — this is a hard inquiry and will show up on your credit report.
The process takes about 10 to 15 minutes. Navy Federal will tell you when ready whether you are approved, denied, or pending review. If you are approved, you will be asked to choose your deposit amount and confirm your mailing address for the card.
After approval, Navy Federal transfers your deposit from your checking or savings account into the secured savings account that backs the card. The physical card usually arrives within 7 to 10 business days. You can set up it online or by phone as soon as it arrives, and you can use it right away.
What Happens If You Are Denied
Navy Federal may deny your process if your credit score is very low, if you have recent late payments or collections accounts, or if you have had a recent bankruptcy. The credit union does not publish a minimum credit score requirement, but members report being approved with scores in the 500 to 600 range, so denial is not automatic even with poor credit.
If you are denied, you can ask Navy Federal for the specific reason. Common reasons include insufficient credit history, too many recent hard inquiries, or a recent negative event like a late payment. You can reapply after 30 to 90 days if you have resolved the issue — for example, if you were denied because of a recent late payment, waiting until that payment is further in the past may help.
In the meantime, you can use the secured card at other credit unions or banks. Some credit unions have less strict approval standards, and building a small history of on-time payments elsewhere can help your next process at Navy Federal.
Building Credit and Moving to an Unsecured Card
The secured card reports to all three credit bureaus, so every on-time payment helps your credit score. Navy Federal also reports your credit limit and balance, so keeping your balance low relative to your limit (under 30 percent is ideal) helps more than paying it off completely each month.
After 12 to 18 months of on-time payments, Navy Federal may automatically convert your card to an unsecured card. When this happens, your deposit is returned to your checking or savings account. You do not have to do anything — Navy Federal makes the decision based on your payment history and current credit score.
If Navy Federal does not convert your card automatically, you can call and ask. Some members report being converted after 12 months; others wait the full 18 months or longer. The timeline depends on how much your credit score has improved and whether you have had any late payments.
Fees and Costs to Know
The Navy Federal Secured Visa Card charges an annual fee of approximately $25. This is deducted from your deposit account each year, not from the secured savings account holding your deposit. There is no process fee, no processing fee, and no monthly maintenance fee.
If you carry a balance, Navy Federal charges interest. The APR varies based on your creditworthiness but typically ranges from 18 percent to 24 percent for secured cardholders. Paying your full balance each month avoids interest charges entirely.
Late payments trigger a late fee (typically $25 to $35) and may cause your APR to increase. Missing a payment by 30 days or more will be reported to the credit bureaus and will hurt your credit score, which defeats the purpose of the card.
Alternatives If Navy Federal Is Not an Option
If you are not may be able to access for Navy Federal membership, other banks and credit unions offer secured cards with similar terms. Capital One Secured MasterCard, Discover Secured Card, and Chime Credit Builder Visa all accept applicants with poor or no credit history and do not require membership in a credit union.
Some of these cards have lower minimum deposits ($200 to $500) and lower annual fees ($0 to $35). The tradeoff is that they may not convert to unsecured cards as quickly, or they may charge higher interest rates. Compare the annual fee, APR, and conversion timeline before you choose.
If you have a family member who is Navy Federal-may be able to access, you may also be able to join as a family member and open your own account. This is often faster than waiting for your own military service or employment status to change.
Frequently Asked Questions
Do I have to be active-duty military to join Navy Federal?
No. Navy Federal membership is open to active-duty, Reserve, Guard, and retired military; veterans; Department of Defense civilians; and their families. If you are a spouse or child of someone in one of these categories, you can join as a family member.
What credit score do I need to be approved?
Navy Federal does not publish a minimum credit score. Members report being approved with scores in the 500 to 600 range, and some with lower scores. Your approval depends on your full credit history, not just your score. A recent bankruptcy or multiple late payments makes approval less likely.
Can I use the card right away after approval?
You can use it as soon as it arrives and you set up it, which is usually 7 to 10 business days after approval. You cannot use it before the physical card arrives, even if you are approved online.
What happens to my deposit if I close the card?
Your deposit is returned to your checking or savings account. If you close the card within the first year, you forfeit the annual fee that was already charged. If you convert to an unsecured card and then close it later, your deposit has already been returned to you.
Can I increase my credit limit after approval?
Yes, but only by increasing your deposit. You can add more money to the secured savings account, and your credit limit will increase by the same amount. You cannot increase your limit without increasing your deposit.