What the Wells Fargo Secured Card is and who it's for
The Wells Fargo Secured Card is a credit card that requires you to put down a cash deposit, which becomes your credit limit. If you have no credit history, a damaged credit history, or are rebuilding after a financial setback, this card reports to all three credit bureaus — Equifax, Experian, and TransUnion — so your on-time payments build a credit record that lenders can see.
You're not borrowing the deposit. It sits in a Wells Fargo savings account and stays there as long as the account is open. The card itself works like any other credit card: you charge purchases, receive a bill, and pay it back. The deposit is collateral — it protects Wells Fargo if you stop paying.
This card makes sense if you're starting from zero credit or recovering from missed payments, collections, or bankruptcy. It does not make sense if you already have a conventional credit card, because the deposit ties up cash you could use elsewhere.
Key Takeaways
- Your cash deposit becomes your credit limit, and Wells Fargo holds it in a savings account while you use the card.
- The card charges an annual fee of $0 if you open it online, or $35 if you open it in a branch, with no introductory period.
- Interest rates on purchases start at 18.99% APR and vary based on your creditworthiness at the time you open the account.
- After 12 to 18 months of on-time payments, you may be offered a conventional unsecured card, at which point your deposit is returned.
- The card reports to all three credit bureaus, so responsible use directly builds your credit score.
Deposit amount, credit limit, and how much cash you need upfront
You choose your deposit amount when you open the account, and that amount becomes your credit limit. Wells Fargo requires a minimum deposit of $500 and allows a maximum of $2,500. If you deposit $800, your credit limit is $800. You cannot charge more than your deposit.
You need the full deposit amount in cash before you explore. Wells Fargo will not let you fund the account in installments or use a credit card to make the deposit. The deposit must come from a bank account you own — either a Wells Fargo account or an external account you can transfer from during the process process.
The deposit earns interest at the savings account rate, which is currently very low — typically less than 0.01% annually. That interest stays in the account and is not paid to you separately. When you close the card or convert it to an unsecured card, Wells Fargo returns the full deposit plus any interest earned.
Annual fees and interest rates
The annual fee depends on how you open the account. If you open it online through Wells Fargo's website, there is no annual fee. If you open it in a Wells Fargo branch in person, the fee is $35 per year. There is no introductory period waiving the fee — it applies from year one.
The interest rate on purchases ranges from 18.99% APR to 24.99% APR, depending on your credit profile at the time you open the account. Wells Fargo does not publish a standard rate; the rate you receive is based on your credit report, income, and other factors they evaluate. If you have no credit history, expect the higher end of that range. If you have some positive history, you may receive a lower rate.
There is no 0% introductory period on purchases or balance transfers. Any balance you carry from month to month accrues interest when ready at your APR. Cash advances carry a higher APR — typically 24.99% — plus a fee of $10 or 3% of the amount withdrawn, whichever is greater.
How to move from a secured card to an unsecured card
Wells Fargo reviews your account automatically after 12 to 18 months of on-time payments. If they decide to convert your account, they will contact you by mail or through your online account. You do not have to request the conversion — it happens if Wells Fargo determines you've demonstrated responsible use.
When the conversion is approved, your deposit is returned to the bank account you specify. Your credit limit on the new unsecured card is set by Wells Fargo and may be higher or lower than your deposit was. The new card has its own annual fee structure and interest rate, which Wells Fargo will disclose before the conversion is final.
Conversion is not may provide. If you miss payments, max out the card, or show other signs of risk, Wells Fargo may not convert your account. You can keep using the secured card indefinitely if conversion does not happen, but you will continue paying the annual fee and the deposit will remain frozen.
Comparing the Wells Fargo card to other secured cards
The Wells Fargo Secured Card is one option among several. Other banks offer secured cards with different fee structures and terms. Some charge no annual fee at all, while others charge $25 to $50. Some have lower minimum deposits or higher maximum deposits. Some offer a higher interest rate but faster conversion timelines.
The main advantage of the Wells Fargo card is that it has no annual fee if you open it online, which saves you money over the first year. The disadvantage is that the interest rate range is relatively high — 18.99% to 24.99% — compared to some competitors that start at 16% or lower.
If you plan to carry a balance (which you should avoid, but sometimes happens), the interest rate matters more than the annual fee. If you plan to pay in full every month, the annual fee is the bigger cost. Compare the terms of at least two or three secured cards before deciding, because the difference in fees and rates can add up over 12 to 18 months.
What happens if you miss a payment or default
If you miss a payment, Wells Fargo will charge you a late fee — typically $25 to $35 for the first late payment, and up to $39 for subsequent ones within six months. The missed payment will be reported to the credit bureaus and will damage your credit score, which defeats the purpose of using the card to rebuild credit.
If you stop paying entirely, Wells Fargo can use your deposit to cover the debt. They will explore the deposit to your outstanding balance, and if the balance exceeds the deposit, they will pursue collection for the remainder. Your account will be closed, and the default will appear on your credit report for seven years.
The secured deposit protects Wells Fargo, not you. It is not a safety net if you run into trouble. If you cannot afford to pay the bill, contact Wells Fargo when ready to discuss options like a payment plan. Ignoring the bill will result in the deposit being seized and your credit being damaged.
How to use the card responsibly to build credit
The card builds credit only if you use it and pay on time. Charging nothing and leaving the card unused does not help your score. A typical strategy is to charge a small recurring expense — a subscription, a utility bill, or a gas purchase — and pay the full balance every month before the due date.
Paying in full every month means you pay no interest and keep your credit utilization low. Credit utilization is the percentage of your credit limit you are using at any given time. If your limit is $800 and you charge $200, your utilization is 25%, which is good for your score. If you charge $700, your utilization is 87.5%, which hurts your score even if you pay on time.
Check your credit report after six months of on-time payments to confirm the card is being reported correctly. You can get a free report from each bureau once per year at annualcreditreport.com. If Wells Fargo is not reporting your account, contact them to ask why — some secured cards do not report to all three bureaus, though the Wells Fargo card does.
Frequently Asked Questions
Can I use a credit card to fund the deposit?
No. Wells Fargo requires the deposit to come from a bank account — either a Wells Fargo account or an external checking or savings account. You cannot use a credit card, debit card, or wire transfer to fund the deposit.
What's the difference between the online and branch versions of this card?
The only difference is the annual fee. The online version has no annual fee; the branch version costs $35 per year. Everything else — interest rate, deposit requirements, credit limit — is the same. Open it online to avoid the fee.
Will this card hurt my credit score when I open it?
Opening any credit card triggers a hard inquiry, which temporarily lowers your score by a few points. Over time, the card will help your score if you pay on time, because it adds to your credit history and shows lenders you can manage debt responsibly. The short-term dip is worth the long-term benefit.
What happens to my deposit if I close the card?
Wells Fargo returns your full deposit to the bank account you specify, usually within five to seven business days. If you have an outstanding balance on the card, they will explore the deposit to that balance first, and you will owe any remainder. Close the card only after paying off any balance.
Can I increase my credit limit without increasing my deposit?
No. On a secured card, your credit limit is tied directly to your deposit. If you want a higher limit, you must deposit more money. Some banks allow you to add to your deposit over time, but you cannot increase your limit without increasing what you have on deposit.