Amex's Secured Card: The Amex Secured Credit Card
American Express does offer a secured credit card, called the Amex Secured Credit Card. It works the way secured cards typically do: you put down a cash deposit (your collateral), and Amex extends you a credit line equal to that deposit. You then use the card like any other credit card, pay your monthly bill, and build a credit history that Amex reports to all three credit bureaus.
The deposit requirement starts at $500 and goes up to $2,500. Your credit limit matches your deposit amount — so a $1,000 deposit gives you a $1,000 limit. Unlike some secured cards that charge an annual fee on top of the deposit, the Amex Secured Card has no annual fee, which means your only cost is the interest you pay if you carry a balance.
The card is designed as a stepping stone. After you've used it responsibly for a period of time — typically 18 months or longer — Amex may convert it to an unsecured card and return your deposit. There's no may provide of conversion, and timing varies by account, but this is the intended path for most cardholders.
Key Takeaways
- The Amex Secured Credit Card requires a cash deposit between $500 and $2,500, and your credit limit equals your deposit amount.
- There is no annual fee, so you only pay interest if you carry a balance month to month.
- Amex reports your payment history to all three credit bureaus, which means on-time payments build your credit score over time.
- After roughly 18 months of responsible use, Amex may convert your account to an unsecured card and return your deposit, though conversion is not may provide.
How the Deposit Works and What Happens to Your Money
Your deposit sits in a separate account at American Express Bank and is held as collateral. You don't earn interest on it, and you can't touch it while the card is active. Amex uses it as insurance: if you stop paying, they can take the deposit to cover what you owe.
The deposit is not a fee. It's your own money held in reserve. When your account converts to unsecured (or if you close the card in good standing), Amex returns the full deposit to you. If you close the account while you owe a balance, Amex will apply the deposit to what you owe before returning any remainder.
You choose the deposit amount within the $500 to $2,500 range when you open the account. A larger deposit gives you a higher credit limit, which can help your credit utilization ratio — the percentage of your available credit you're using. Lower utilization looks better to credit scoring models.
Interest Rates, Fees, and Other Costs
The Amex Secured Card carries a variable interest rate (APR), which means it changes based on market conditions and your creditworthiness. The exact rate you receive depends on your credit profile at the time you open the account. Because this is a secured card, the APR is typically higher than what you'd see on unsecured cards, but the specific number varies.
There is no annual fee, no foreign transaction fee, and no penalty APR. If you pay your full balance by the due date each month, you won't pay any interest at all. The card also includes some basic protections like fraud liability protection and purchase protection, though the benefits are more limited than those on premium Amex cards.
Late payments do carry consequences: a late fee applies if you miss your due date, and a missed payment will be reported to the credit bureaus, which damages your credit score. This is why the card is most useful if you can commit to on-time payments.
Building Credit With the Amex Secured Card
The entire purpose of a secured card is to create a credit history that lenders can see. Amex reports your account activity to Equifax, Experian, and TransUnion every month. This means on-time payments, low balances, and responsible use all show up on your credit report.
To maximize the credit-building benefit, keep your balance well below your limit — ideally under 30 percent of your credit line. A $1,000 limit means keeping your balance under $300. This demonstrates that you can manage credit responsibly, and it helps your credit score more than a high balance would.
Payment history is the single largest factor in credit scoring (about 35 percent of your score). Missing even one payment can set back your progress significantly. Setting up automatic payments for at least the minimum due is a practical way to avoid this mistake.
When Amex Converts Your Card to Unsecured
Conversion is not automatic, and Amex does not publish exact timelines. Most cardholders see conversion offers after 18 months to 2 years of on-time payments and responsible use. Some accounts take longer; a few may not convert at all if payment history is spotty or if you've had other issues with the account.
When Amex decides to convert your account, they'll notify you. At that point, your deposit is returned to you (usually within 5 to 7 business days), and your card becomes a standard unsecured Amex card. Your credit limit may stay the same, increase, or decrease depending on your credit profile at conversion.
You don't have to wait for conversion to close the account if you want to. If you close it yourself while in good standing, your deposit is returned. However, closing the account also closes your credit history with Amex, which can affect your credit score slightly — so conversion (which keeps the account open and active) is generally better for your credit if you're still building.
Alternatives to the Amex Secured Card
Other issuers also offer secured cards, and they vary in deposit requirements, fees, and conversion policies. Some secured cards charge an annual fee in addition to requiring a deposit, which increases the cost of building credit. Others have lower deposit minimums or higher maximum limits.
If you're comparing options, look at whether the card charges an annual fee, what the deposit range is, whether it reports to all three bureaus, and what the APR is. The Amex Secured Card's lack of an annual fee is a meaningful advantage, but it's worth checking what other issuers offer if you're deciding where to open your first secured account.
If you already have some credit history but it's damaged, a secured card may not be your only option. Some issuers offer unsecured cards designed for people with fair or poor credit, though these typically come with higher APRs and lower limits. A secured card is most useful if you have little to no credit history or if you're rebuilding after a significant negative event.
How to Open an Amex Secured Card Account
You can open an account online through American Express's website or by phone. The application asks for standard information: your name, address, Social Security number, income, and employment details. Amex will pull your credit report as part of the process.
If you're approved, you'll choose your deposit amount and provide payment information. The deposit is typically charged to a bank account or debit card. Once the deposit clears, your card is activated and ready to use.
The entire process usually takes a few business days from approval to activation. You can start using the card as soon as it arrives in the mail, which typically takes 7 to 10 business days after activation.
Frequently Asked Questions
Can I increase my credit limit on the Amex Secured Card?
Yes, you can increase your limit by adding more to your deposit. Contact Amex and request a deposit increase; the additional amount is held the same way as your original deposit. Your new credit limit will reflect the total deposit. You cannot increase your limit without increasing your deposit.
What happens if I miss a payment?
A late payment is reported to the credit bureaus and damages your credit score. You'll also be charged a late fee. Amex may not convert your account to unsecured if you have late payments in your history. If you fall significantly behind, Amex can apply your deposit to what you owe.
Can I use the Amex Secured Card internationally?
Yes, you can use it abroad. There is no foreign transaction fee, which is unusual for a secured card and makes it useful for travel. You'll still pay the standard APR on any balance you carry.
Is there a credit score requirement to open the Amex Secured Card?
Amex does not publish a minimum credit score, but the card is designed for people with limited or poor credit history. You may be approved even with a low score or no credit history, though approval is not may provide for everyone who applies.
What's the difference between the Amex Secured Card and a prepaid card?
A prepaid card is not a credit card — you load money onto it and spend what you've loaded. It doesn't build credit because there's no lender and no credit reporting. A secured credit card is a real credit card backed by your deposit; it reports to credit bureaus and builds your credit history.