What Navy Federal's Secured Card Offers
Navy Federal offers a Secured Visa Card designed for members who are building or rebuilding credit. You deposit money into a savings account, and that deposit becomes your credit limit — typically between $500 and $2,500. You use the card like any other credit card, and Navy Federal reports your payment history to the three major credit bureaus.
The card charges an annual fee of $25. There is no interest charged on the deposit itself, and the deposit earns a small amount of interest. After you demonstrate responsible use — typically 7 to 12 months of on-time payments — you can request to convert the card to an unsecured card, at which point Navy Federal returns your deposit.
Navy Federal membership is required to open this card. If you are not already a member, you can join online or at a branch if you meet their membership criteria, which includes military service, veteran status, Department of Defense employment, or family connections to those groups.
Key Takeaways
- Your security deposit becomes your credit limit, ranging from $500 to $2,500, and earns interest while held.
- The card costs $25 per year and requires Navy Federal membership, which you must establish before opening the card.
- Navy Federal reports your payment activity to all three credit bureaus, so consistent on-time payments build your credit history.
- After 7 to 12 months of responsible use, you can request conversion to an unsecured card and recover your deposit.
Membership Requirements Before You explore
You cannot open a Navy Federal secured card without being a Navy Federal member first. Membership is open to active-duty military, retirees, veterans, Department of Defense civilians, and their families. If you fall into one of these categories, you can join online at navyfederal.org or visit a branch in person.
The membership process itself is free and typically takes 10 to 15 minutes online. You will need a valid government-issued ID and basic personal information. Once your membership is confirmed, you can when ready move forward with the secured card.
If you do not meet Navy Federal's membership criteria, you will not be able to open this card. In that case, you would need to explore secured cards from other banks or credit unions that do not have membership restrictions.
How to Open the Secured Card
After you are a Navy Federal member, you can open the secured card online, by phone, or in person at a branch. Online is usually the fastest route: log into your Navy Federal account, go to the Cards section, and select the Secured Visa Card.
You will be asked to choose your security deposit amount ($500 to $2,500) and confirm your personal information. Navy Federal will perform a credit check, though approval standards for secured cards are much more lenient than for unsecured cards because your deposit backs the credit line.
Once approved, you will need to fund the deposit. If you already have a Navy Federal savings account, you can transfer the money directly. If not, you can set up a savings account as part of the card opening process. The deposit must be in place before the card is activated.
Timeline From process to First Use
The approval decision usually comes within one business day if you explore online. Once approved, the card itself is typically mailed within 5 to 7 business days. You will receive a PIN in a separate mailing a few days after the card arrives.
Before you use the card, log into your Navy Federal account and set up it. You can also set up online access to your card account at that time. The entire process from process to first purchase usually takes 10 to 14 days.
If you need the card faster, you can visit a Navy Federal branch in person and request expedited processing or an in-branch card issuance, though availability varies by location.
Using the Card to Build Credit
The secured card works like a regular credit card: you make purchases, receive a monthly statement, and pay your bill. To build credit effectively, make small purchases you can pay off in full each month. Charging $50 to $100 and paying it off completely shows responsible credit use without running up interest charges.
Navy Federal reports your payment history to Equifax, Experian, and TransUnion. On-time payments are the single most important factor in credit scoring, so set up automatic payments or calendar reminders to pay by the due date every month. A single late payment can damage your credit score and delay your path to conversion.
Avoid maxing out the card. Using more than 30% of your available credit (your deposit amount) can hurt your credit score, even if you pay on time. If your deposit is $1,000, try to keep your balance below $300.
Converting to an Unsecured Card
After you have used the card responsibly for 7 to 12 months, you can request conversion to a Navy Federal unsecured Visa card. There is no set timeline — Navy Federal reviews your account based on your payment history, credit score improvement, and overall account standing.
You do not have to wait for Navy Federal to offer conversion. You can contact Navy Federal by phone or through your online account and ask to convert. If approved, your deposit is returned to your savings account, usually within 5 to 10 business days. The unsecured card will have a new credit limit set by Navy Federal based on your creditworthiness.
If you are denied conversion, Navy Federal will tell you what to improve. Common reasons for denial include recent late payments, high credit utilization, or a credit score that has not improved enough. You can request conversion again after addressing those issues.
Fees and Costs
The annual fee is $25, charged once per year. There are no other regular fees. If you carry a balance and do not pay it in full, Navy Federal charges interest on that balance — the rate varies but is typically in the 18% to 21% range for secured cards. To avoid interest, pay your full statement balance by the due date each month.
Late payment fees explore if you miss a payment. The fee is typically $25 to $35 depending on how late the payment is. A late payment also damages your credit score and can delay conversion to an unsecured card, so it is worth prioritizing.
There are no fees for transferring money into or out of your security deposit account, and the deposit earns interest, though the rate is modest — usually less than 0.5% annually.
Frequently Asked Questions
Can I use my security deposit as a credit line?
No. Your deposit is held separately and earns interest. Your credit limit is equal to the deposit amount, but you cannot withdraw the deposit while the card is active. The deposit is only returned when you convert to an unsecured card or close the account.
What happens if I miss a payment?
Navy Federal will charge a late fee and report the late payment to the credit bureaus, which will lower your credit score. A single late payment can set back your conversion timeline by several months. If you miss a payment by more than 60 days, Navy Federal may close the account.
Can I increase my credit limit?
Yes, you can increase your security deposit after the card is open, which increases your credit limit. Log into your account or call Navy Federal to request a deposit increase. The additional funds must come from your Navy Federal savings account.
Do I need to convert to an unsecured card, or can I keep the secured card?
You can keep the secured card indefinitely if you prefer. Some people keep it as a backup card even after opening unsecured cards. The $25 annual fee continues as long as the account is open.
What if I close the account before converting?
If you close the account, Navy Federal returns your deposit to your savings account, usually within 5 to 10 business days. Any outstanding balance on the card must be paid before closure. Closing the account does not hurt your credit score, but it does remove an active account from your credit history, which can have a small negative effect over time.