Banks and credit unions are your main sources for secured cards
You can open a secured credit card at most banks, credit unions, and some online-only lenders. The card itself works like any other — you swipe it, pay a bill each month — but you put down a cash deposit that acts as collateral. That deposit typically becomes your credit limit, so a $500 deposit gives you a $500 limit.
The difference between where you get one matters less than whether the card reports to all three credit bureaus (Equifax, Experian, and TransUnion). If it doesn't report, it won't build your credit history. Before you open an account anywhere, confirm in writing that the issuer reports to all three.
You'll also want to know the annual fee, the interest rate if you carry a balance, and whether the card has a path to graduation — meaning the issuer will convert it to an unsecured card after you've shown responsible use, usually 12 to 24 months of on-time payments.
Key Takeaways
- Secured cards are available from traditional banks, credit unions, and online lenders, but you must confirm the issuer reports to all three credit bureaus before opening an account.
- Your cash deposit becomes your credit limit, so a $500 deposit means a $500 limit, and the deposit stays in a separate account while you use the card.
- Annual fees range from $0 to $95 depending on the issuer, and some cards charge interest on balances while others do not.
- Many secured cards offer a path to graduation, where the issuer converts your account to a regular unsecured card after 12 to 24 months of on-time payments.
Traditional banks with secured card programs
Most large national banks offer secured cards, though the terms and fees vary. Wells Fargo, Bank of America, and U.S. Bank all have secured card products. You can walk into a branch, call their customer service line, or visit their website to start the process. The advantage of a bank you already use is that you may already have a checking or savings account there, which can speed up approval.
Traditional banks typically require a minimum deposit of $300 to $500, though some allow deposits up to $2,500 or more. The deposit sits in a separate savings account that earns little to no interest. You'll pay an annual fee — usually $25 to $49 — and the interest rate on any balance you carry ranges from 18% to 24%, depending on your creditworthiness and the bank's current rates.
The trade-off is that traditional banks move slowly. Opening an account can take one to two weeks, and you may need to visit a branch in person or provide documents by mail. If you need a card quickly, an online lender may be faster.
Credit unions and their secured card options
Credit unions often offer secured cards with lower fees and better terms than banks. You must be a member to open an account, but membership is usually open to anyone in a certain geographic area, profession, or employer group. Start by searching for a credit union you're may be able to access to join using the CO-OP network locator or the Alliant Credit Union website.
Credit union secured cards typically have annual fees of $0 to $35 and interest rates that are often lower than bank rates. Some credit unions waive the annual fee entirely if you maintain a minimum balance in your checking account. The deposit requirement is usually $300 to $500, and approval can happen within days if you already have an account with them.
The main barrier is membership. If you don't already belong to a credit union, you'll need to open a membership account first, which may require a small deposit ($5 to $25) and proof of may be able to access. Once you're a member, explore for the secured card is straightforward.
Online lenders and fintech companies
Online-only lenders like Chime, LendingClub, and Self offer secured cards without requiring you to visit a branch. You can complete the entire process on your phone or computer, and approval often happens within hours or days. These companies are built for speed and simplicity, which appeals to people who want to start building credit quickly.
Online lenders typically have lower or no annual fees and may offer features like free credit monitoring or automatic deposit options. The deposit requirement is usually $200 to $2,500, and the interest rate varies by lender. Some online lenders are more lenient with credit history — they may approve you even if you have no credit score yet or a very thin file.
The trade-off is that not all online lenders report to all three credit bureaus. Before you open an account, search the lender's website for their reporting policy or call customer service to confirm. If they only report to one or two bureaus, the card won't help your credit as much.
What to compare before you choose
The best secured card for you depends on your situation. If you want the lowest fees and fastest approval, an online lender may be the right choice. If you prefer working with a familiar institution or want to build a relationship with a local credit union, a traditional bank or credit union is better. Here's what to look at side by side:
| Factor | What to Look For |
|---|---|
| Credit bureau reporting | Confirm the issuer reports to Equifax, Experian, and TransUnion |
| Annual fee | Ranges from $0 to $95; lower is better if all else is equal |
| Deposit requirement | Usually $300 to $500; make sure you can afford to set aside this amount |
| Interest rate (APR) | Ranges from 15% to 24%; matters only if you carry a balance |
| Path to graduation | Ask if the card converts to unsecured after 12 to 24 months of on-time payments |
| Approval speed | Online lenders are fastest (hours to days); banks are slower (one to two weeks) |
How to start the process process
Once you've chosen an issuer, the process is straightforward. You'll need your Social Security number, proof of income (a recent pay stub or tax return), and a government-issued ID. Some lenders also ask for proof of address, like a utility bill or lease.
If you're explore online, you can usually complete the form in 10 to 15 minutes. If you're explore at a bank or credit union branch, bring your documents with you and plan to spend 30 to 45 minutes. After you submit, the issuer will pull your credit report and make a decision within hours or days.
Once you're approved, you'll fund your deposit account (usually by bank transfer or check) and receive your card in the mail within 7 to 10 business days. Some online lenders offer when ready virtual card numbers so you can start using the card right away while you wait for the physical card to arrive.
Frequently Asked Questions
Can I get a secured card if I have no credit history?
Yes. Secured cards are designed for people with no credit or poor credit. You don't need an existing credit score to open one. The issuer will still pull your credit report to check for fraud or unpaid debts, but they won't reject you for having no score. Online lenders are often the most welcoming to people with no credit history.
What happens to my deposit if I miss a payment?
Your deposit is held separately and is not used to pay your bill if you miss a payment. You're responsible for paying the bill on time, just like with any credit card. If you don't pay, the issuer will report the late payment to the credit bureaus and may charge you a late fee. Your deposit stays in the account and is returned to you when you close the card or graduate to an unsecured card.
Can I use a secured card to build credit if I already have a credit score?
Yes, but it may not be the best choice. If you already have a credit score above 580 or so, you may be approved for an unsecured card with better terms and no deposit requirement. Check your score first using a free service like Credit Karma or AnnualCreditReport.com. If you're just above the threshold, a secured card can still help, but compare it to unsecured options first.
How long does it take for a secured card to help my credit?
You'll see a small boost within 30 to 45 days, once the issuer reports your first statement to the credit bureaus. The bigger boost comes after six months of on-time payments. After 12 to 24 months, if you've paid on time and kept your balance low, you may be approved to graduate to an unsecured card, which further improves your credit profile.
Do I have to pay interest on my secured card balance?
Only if you carry a balance from month to month. If you pay your full statement balance by the due date each month, you won't pay any interest. The interest rate (APR) only applies to money you owe after the payment important date. To build credit most efficiently, pay in full each month and keep your balance below 30% of your credit limit.