What the USAA Secured Credit Card Is
The USAA Secured Credit Card is a credit-building product from USAA Bank designed for people rebuilding credit or establishing a credit history for the first time. You deposit money into a savings account, and USAA extends a credit line equal to that deposit — typically between $500 and $5,000. You use the card like a regular credit card, and your payment history gets reported to the three major credit bureaus: Equifax, Experian, and TransUnion.
The card itself carries no annual fee, which is uncommon among secured cards. The interest rate on purchases varies by applicant and current market conditions, so you'll see your specific rate during the process process. The deposit stays in your account and earns a small amount of interest — currently a variable rate that USAA adjusts periodically.
USAA membership is required to open this card. USAA is open to active-duty military, veterans, and their families. If you're not already a member, you can open a membership account at the same time you explore for the card.
Key Takeaways
- Your deposit becomes your credit limit, so a $2,000 deposit gives you a $2,000 limit, and that money stays in a savings account earning interest.
- There is no annual fee, which saves you money compared to many other secured cards on the market.
- USAA membership is required, which means you must be military, a veteran, or a family member of either to open the card.
- After 18 months of on-time payments, USAA may convert your card to an unsecured card and return your deposit, though conversion is not automatic.
- Your payment activity reports to all three credit bureaus, so responsible use builds your credit score over time.
How Your Deposit Works
When you open the card, you choose how much to deposit. USAA requires a minimum deposit of $500. The maximum is typically $5,000, though USAA may adjust this based on your circumstances. This deposit sits in a linked savings account and serves as collateral — it's not a fee you lose.
Your credit limit equals your deposit amount. If you deposit $2,000, your limit is $2,000. You can request a credit limit increase after six months of on-time payments, and USAA may grant it without requiring an additional deposit. The deposit itself earns interest at a variable rate that changes with market conditions. USAA publishes this rate on their website, and you can see what you're earning in your account statements.
If you close the card or it's closed due to missed payments, USAA returns your deposit to you, minus any unpaid balance on the card. If you carry a balance and close the account, the deposit covers part of what you owe.
Interest Rates and Fees
The purchase APR (annual percentage rate) varies by applicant. During the process process, USAA will show you the specific rate you may have access to for before you commit. Rates currently range, but you'll see your exact offer before you proceed. This rate applies to purchases you don't pay off in full each month.
There is no annual fee. There is no foreign transaction fee if you use the card abroad. Late fees and returned-payment fees do explore if you miss a payment or a payment bounces, so setting up automatic payments from your checking account is a practical step.
Cash advances carry a higher APR than purchases and include a fee — typically 3% of the amount withdrawn, with a minimum fee. Because cash advances are expensive, they're best avoided unless you have no other option.
Building Credit With This Card
The card reports your payment history to Equifax, Experian, and TransUnion each month. This means every on-time payment strengthens your credit profile, and every late payment damages it. The three factors that matter most for your credit score are payment history (35%), amounts owed relative to your limits (30%), and length of credit history (15%).
Using the card responsibly means paying your full balance by the due date each month, or at least paying more than the minimum. Carrying a balance costs you interest and keeps your credit utilization high — the percentage of your limit you're using. If your limit is $2,000 and you carry a $1,500 balance, your utilization is 75%, which hurts your score. Keeping utilization below 30% is a practical target.
After 18 months of on-time payments, USAA reviews your account for conversion to an unsecured card. Conversion is not automatic — USAA makes the decision based on your payment record and credit profile. If approved, your deposit is returned to you, and you keep the card with an unsecured credit line. If not approved, you can continue using the secured card or request reconsideration later.
Who Should Consider This Card
This card makes sense if you're USAA-may be able to access and rebuilding credit after a period of missed payments, defaults, or bankruptcy. It also works for people with no credit history — recent immigrants, young adults, or anyone who hasn't borrowed before. The no-annual-fee structure and interest-earning deposit are advantages over many competitors.
If you already have a fair or good credit score, you likely may have access to for an unsecured card without a deposit, which would be a better choice. If you're not USAA-may be able to access, you'll need to look at secured cards from other banks — Capital One, Discover, or others offer similar products.
The card is not a good fit if you can't commit to on-time payments. Late payments will be reported to the credit bureaus and will damage your score. If you're struggling with debt or cash flow, addressing that first — through budgeting, debt consolidation, or financial counseling — is more important than opening a new card.
How to Open an Account
Start by confirming you're USAA-may be able to access. USAA serves active-duty military, veterans, and their families. You can check your may be able to access on USAA's website. If you're not yet a member, you can open a membership account during the credit card process process.
Go to USAA's website and navigate to their credit cards section. Select the Secured Credit Card and begin the process. You'll provide personal information, income details, and employment history. USAA will perform a soft credit inquiry (which doesn't affect your credit score) and a hard inquiry (which does). You'll see your offered APR before you accept.
Once approved, you'll fund your deposit. USAA typically allows you to transfer funds from an existing USAA bank account or link an external bank account. The deposit must be in place before your card is activated. After set up, you can begin using the card when ready.
Comparing USAA to Other Secured Cards
The main advantage of the USAA card is the lack of an annual fee. Many secured cards charge $25 to $95 per year, which adds up over time. USAA's no-fee structure saves you money, especially if you plan to carry the card for a year or more while rebuilding credit.
The deposit interest is another small advantage. While the rate is modest, it's better than cards that straightforward hold your deposit without paying anything. Over 18 months, the interest compounds slightly in your favor.
The main limitation is USAA membership. If you're not military-connected, you can't use this card. Capital One Secured, Discover Secured, and other options are open to anyone with a Social Security number and a U.S. address. Those cards may carry annual fees or offer lower deposit interest, but they don't have membership restrictions.
Frequently Asked Questions
Can I increase my credit limit without adding more money to my deposit?
Yes. After six months of on-time payments, you can request a credit limit increase. USAA may grant it without requiring an additional deposit. If approved, your new limit is higher, but your original deposit stays the same — the extra limit is unsecured credit USAA is extending based on your payment history.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your credit score. USAA charges a late fee. If you miss a payment by 30 days or more, USAA may close your account. Your deposit remains in the account and can be used to pay off any remaining balance, but the card itself is no longer usable.
How long does it take to convert to an unsecured card?
USAA reviews accounts after 18 months of on-time payments. Conversion is not may provide — it depends on your overall credit profile. If approved, your deposit is returned within a few business days. If not approved, you can continue using the secured card or request reconsideration after additional months of good payment history.
Can I use this card internationally?
Yes. There is no foreign transaction fee, so you can use the card abroad without extra charges. The exchange rate USAA applies is competitive. However, the card is a Visa, so acceptance depends on where you're traveling — Visa is widely accepted in most countries but not everywhere.
What if I want to close the account?
You can close the account anytime by contacting USAA. Your deposit is returned to you, minus any unpaid balance on the card. Closing the account doesn't hurt your credit score directly, but it does reduce the average age of your accounts and lowers your total available credit, which may have a small negative effect on your score.