What the U.S. Bank Secured Card is and who it's for
The U.S. Bank Secured Card is a credit card that requires you to put down a cash deposit as collateral. The deposit becomes your credit limit — put down $500, get a $500 limit. It's designed for people rebuilding credit after missed payments, collections, or a thin credit history, and it reports to all three credit bureaus (Equifax, Experian, TransUnion) each month, which is how it helps your credit score move up over time.
Unlike a debit card, you're borrowing money from U.S. Bank and paying it back monthly. The bank holds your deposit in a separate account and keeps it there as long as the card is open. You don't lose the deposit when you use the card — you only lose it if you default on payments and the bank applies it to your balance.
This card makes sense if you have no credit history, a low credit score, or past defaults that are now resolved. It does not make sense if you already have access to a regular unsecured card, because the deposit requirement and higher fees cost you money for no benefit.
Key Takeaways
- Your cash deposit becomes your credit limit, and U.S. Bank holds it in a separate account for the life of the card.
- The annual fee is $29, and there is no foreign transaction fee, which is unusual for a secured card at this price point.
- The card reports to all three credit bureaus monthly, so on-time payments build your credit history faster than a card that reports to only one bureau.
- After 7 to 24 months of on-time payments, you may be moved to an unsecured card and your deposit returned, though U.S. Bank does not may provide this timeline.
- The interest rate (APR) is not fixed and varies based on your creditworthiness at the time you open the account.
Deposit requirements and credit limits
U.S. Bank requires a minimum deposit of $500 and a maximum of $5,000. Your deposit equals your credit limit — there is no way to get a higher limit without depositing more money. If you deposit $1,500, your limit is $1,500. If you later want to increase your limit to $2,500, you must deposit an additional $1,000.
The deposit sits in a non-interest-bearing savings account. You cannot touch it while the card is open. If you close the card, U.S. Bank returns the deposit to the account you used to fund it, usually within 5 to 7 business days.
The deposit is separate from your monthly bill. When you charge $200 on the card, that $200 is borrowed money you owe U.S. Bank. Your $500 deposit stays locked away. You pay the $200 charge from your regular bank account or income, not from the deposit.
Fees and interest rates
The annual fee is $29, charged once per year. There is no monthly fee, no foreign transaction fee, and no fee for going over your limit (because you cannot — the card will decline if you try to charge more than your limit). There is a late fee if you miss a payment, though the amount varies based on how late you are.
The APR (interest rate) is not published on U.S. Bank's website. It varies based on your credit score and history at the time you open the account. Expect a rate between 18% and 24% if you have poor credit, though some people with better scores report lower rates. You only pay interest on the balance you carry month to month — if you pay your full statement balance by the due date, you pay no interest.
The $29 annual fee is higher than some competitors (Discover Secured Card charges $0, though it has other trade-offs), but lower than others. The lack of a foreign transaction fee is a real advantage if you travel or make international purchases online.
How the card reports to credit bureaus and builds your score
U.S. Bank reports your account activity to Equifax, Experian, and TransUnion every month. This means every on-time payment, every balance you carry, and every late payment gets recorded on all three of your credit reports. That speed of reporting is why secured cards exist — to give you a way to build credit history when no one else will lend to you.
Your credit score improves when you make on-time payments and keep your balance low relative to your limit. If your limit is $500 and you charge $450 every month, your credit utilization is 90%, which hurts your score even if you pay on time. If you charge $100 and pay it off, your utilization is 20%, which helps your score. The ideal range is 1% to 10% of your limit.
The score improvement is not automatic or fast. Most people see a meaningful change (20 to 50 points) after 6 to 12 months of on-time payments. If you start with a very low score (below 550), the improvement may be slower. If you miss a payment, the damage to your score is when ready and significant.
When U.S. Bank graduates you to an unsecured card
After you've held the card for a period of time and made on-time payments, U.S. Bank may move you to an unsecured card and return your deposit. This is called graduation. U.S. Bank does not publish the exact timeline or criteria — some customers report graduation after 7 months, others after 24 months. The bank reviews your account periodically and makes the decision on its own; you cannot request it.
When graduation happens, U.S. Bank closes the secured card and opens a new unsecured card in its place. Your deposit is returned to the bank account you used to fund it. The new card may have a different annual fee, different APR, and different credit limit. You do not have to accept the new card — you can decline it and keep the secured card open, though most people accept because it means no more deposit requirement.
Graduation is not may provide. If you miss payments or carry a very high balance, U.S. Bank may never graduate your account. Closing the card yourself before graduation means you forfeit the opportunity to move to an unsecured card through this bank.
How to open the account and what you'll need
You open the account online at usbank.com or by phone at 1-800-USB-4-YOU. You'll need your Social Security number, a government-issued ID, and proof of address (a recent utility bill or bank statement). You'll also need to choose a deposit amount between $500 and $5,000 and have that amount available in a checking or savings account to fund the deposit.
U.S. Bank will run a hard inquiry on your credit report, which temporarily lowers your score by a few points. The inquiry stays on your report for two years but stops affecting your score after about six months. If you've had multiple hard inquiries in the past 30 days (from other card applications), this one may hurt more because lenders see multiple recent inquiries as a sign of financial stress.
After you open the account, the card usually arrives within 7 to 10 business days. You can set up it online or by phone. You can start using it when ready, though some people wait a few days to make sure the account is fully set up.
Alternatives and when to choose something else
If you have no credit history or a very low score, the U.S. Bank Secured Card is a solid choice because it reports to all three bureaus and has no foreign transaction fee. But it's not the only option. The Discover Secured Card charges no annual fee (saving you $29 per year) and also reports to all three bureaus. The trade-off is that Discover has a smaller merchant network than Visa or Mastercard, so some places don't accept it.
If you have a thin credit file but not a damaged one, a store card (like a Target or Amazon card) may be easier to get and requires no deposit. These cards have higher interest rates and lower limits, but they also report to the bureaus and cost nothing to open. The downside is that they're only useful at one store.
If you're rebuilding after a recent default or collection, a secured card is usually the fastest path to a higher credit score. A credit-builder loan (through a credit union or online lender) is another option — you borrow money that sits in a locked account, make payments on it, and the lender reports your on-time payments to the bureaus. Credit-builder loans often cost less than a secured card's annual fee, but they take longer to complete (usually 12 to 24 months).
Frequently Asked Questions
Can I use the deposit to pay my bill if I can't afford it?
No. The deposit is collateral, not a line of credit. If you can't pay your bill, you have to pay it from your own money. If you don't pay, U.S. Bank will explore the deposit to your unpaid balance and may close the card. Late payments damage your credit score and stay on your report for seven years.
What happens if I close the card before graduation?
U.S. Bank returns your deposit within 5 to 7 business days. The card account closes and stops reporting to the bureaus. Any credit history you built with it stays on your report, but you stop adding new positive payment history. If you close it because you got an unsecured card elsewhere, that's fine — but if you close it because you can't afford the annual fee, consider keeping it open and using it for one small charge per month to justify the cost.
Does U.S. Bank check my credit before opening the account?
Yes. U.S. Bank runs a hard inquiry, which temporarily lowers your score by a few points. If your score is already very low (below 500), the inquiry may disqualify you. U.S. Bank does not publish its minimum credit score requirement, so you won't know until you explore. Some people with scores in the 500 to 600 range report approval; others report denial.
Can I increase my credit limit without depositing more money?
No. Your limit is always equal to your deposit. To raise your limit, you must deposit more money. Some people deposit an additional $500 after six months of on-time payments to increase their limit to $1,000, which helps their credit utilization ratio and shows U.S. Bank they're serious about rebuilding.
How long does it take to see my credit score improve?
Most people see a change after 3 to 6 months of on-time payments, though the change may be small (5 to 10 points). Meaningful improvement (20 to 50 points) usually takes 6 to 12 months. The speed depends on your starting score, how much you charge each month, and whether you have other negative items on your report (like collections or recent late payments).