Chase's Secured Card Offering

Chase offers one secured credit card: the Chase Secured Visa. It requires a cash deposit between $200 and $2,500, which becomes your credit limit. You use it like a regular card—the deposit stays in a separate account and is not your payment. You pay your monthly bill from your regular checking or savings account, just as you would with an unsecured card.

The card reports to all three major credit bureaus (Equifax, Experian, and TransUnion), so on-time payments build your credit history. After you demonstrate responsible use—typically 6 to 18 months of on-time payments—Chase may convert it to an unsecured card and return your deposit. Some cardholders report conversion happening sooner; others wait longer. There is no set timeline, and Chase does not publish one.

Key Takeaways

  • The Chase Secured Visa requires a deposit of $200 to $2,500 that becomes your credit limit, and you pay your bill separately each month.
  • The card reports to all three credit bureaus, so on-time payments build your credit score from the ground up.
  • There is no annual fee, but the card carries a variable APR that changes with the prime rate, currently around 18% to 21% depending on your creditworthiness.
  • Conversion to an unsecured card is not may provide and depends on Chase's review of your payment history and credit profile.
  • Chase also offers the Sapphire Preferred and other cards to people with fair or better credit, so a secured card is not your only option if your score is borderline.

How the Deposit Works

Your deposit is held in a savings account at Chase and earns a small amount of interest—currently around 4.75% APY, though this rate changes. The deposit is not used to pay your bill. Instead, you make monthly payments from your regular bank account, just like with any credit card. If you miss a payment, Chase will not automatically take money from your deposit; they will report the late payment to the credit bureaus and may charge you a late fee.

If you close the account or Chase closes it for inactivity, your deposit is returned to you. If you default on the card—meaning you stop paying altogether—Chase may use the deposit to cover what you owe, but they can still pursue you for any remaining balance. The deposit protects Chase, not you.

Interest Rates and Fees

The Chase Secured Visa has no annual fee. The APR is variable and currently ranges from 18% to 21%, depending on your creditworthiness at the time of approval. This is higher than many unsecured cards but typical for secured cards. The rate is tied to the prime rate, so it will move up or down as the Federal Reserve changes rates.

Late fees are up to $40 for the first violation and up to $41 for subsequent violations within six months. There is no foreign transaction fee, which is useful if you travel. There is also no penalty APR—if you miss a payment, your rate does not jump to a punitive level, though you will still pay interest on your balance and incur a late fee.

Building Credit With the Chase Secured Visa

The card builds credit because Chase reports your payment history to Equifax, Experian, and TransUnion. Each on-time payment adds a positive mark to your credit file. After six months of on-time payments, your credit score may begin to improve, though the speed depends on your starting point and what else is on your credit report.

To maximize the benefit, keep your balance low relative to your credit limit. If your limit is $500 and you carry a $400 balance, your credit utilization is 80%, which can hurt your score. Aim to use no more than 30% of your limit and pay in full each month if possible. The card itself does not offer rewards, so there is no cash back or points to offset the interest you pay if you carry a balance.

When Chase Converts Your Card to Unsecured

Chase reviews your account periodically to decide whether to convert your secured card to an unsecured one. There is no published timeline, but conversion often happens after 6 to 18 months of on-time payments. Some accounts convert faster; others take longer or never convert. When Chase decides to convert, they will notify you, return your deposit to your bank account, and your credit limit may increase.

Conversion is not automatic and is not may provide. Chase looks at your payment history, credit score, and overall credit profile. If you have missed payments, maxed out the card, or had other negative marks, conversion may not happen. If your account is not converted after two years, contact Chase to ask about your options—you may be may be able to access for a different card or may need to wait longer and continue building your history.

Alternatives if You Cannot Get the Chase Secured Card

Chase's secured card has a $200 minimum deposit, which is reasonable, but some people cannot meet it. If that is the case, other banks offer secured cards with lower minimums. Capital One Secured MasterCard requires a $49 to $200 deposit. Discover Secured Card requires $200 to $2,500 but offers cash back (1% on all purchases), which the Chase card does not.

If your credit score is in the fair range (around 580 to 669), you may also be able to get an unsecured card without a deposit. Chase offers the Chase Freedom Flex to people with fair credit, though the APR will be higher and the credit limit lower than for people with good credit. Compare your options before committing to a secured card, because an unsecured card with rewards may serve you better if you can get approved.

How to Use the Chase Secured Visa to Improve Your Credit

The card works best when you use it for small, regular purchases and pay the full balance each month. For example, put your gas or groceries on the card, then pay it off when the bill arrives. This shows lenders that you can manage credit responsibly without carrying debt. Avoid maxing out the card or carrying a large balance, because high utilization and interest charges work against your goal of building credit.

Check your credit report every few months to make sure Chase is reporting your payments correctly. You can get a free report from each bureau once per year at annualcreditreport.com. If you see errors—like a payment marked late when you paid on time—dispute it with the bureau and with Chase. Accurate reporting is what makes the card effective for building credit.

Frequently Asked Questions

Can I use my deposit as a payment if I run short on money?

No. Your deposit is held separately and cannot be used to pay your bill. You must pay your monthly statement from your regular bank account. If you cannot pay, contact Chase to discuss hardship options, but missing a payment will damage your credit score and trigger a late fee.

What happens to my deposit if I close the card?

Chase returns your deposit to your bank account within 5 to 7 business days after you close the account. If you have an outstanding balance, Chase will use the deposit to pay it down first, then return any remainder to you.

Will the Chase Secured Visa help me get a mortgage or car loan?

Yes, if you use it responsibly. Lenders look at your payment history, credit utilization, and credit mix. A secured card that you pay on time and keep at low balance will improve your score and show lenders you can manage credit. However, one card alone is not enough—you will also need a clean payment history on other accounts and a reasonable debt-to-income ratio.

Can I increase my credit limit without adding more money?

Chase may increase your limit after you have demonstrated responsible use, but they do not may provide it. You can request a limit increase after six months of on-time payments. If Chase approves it, your limit may increase without requiring an additional deposit, though this varies by account.

Is the Chase Secured Visa better than other secured cards?

It depends on your priorities. The Chase card has no annual fee and no foreign transaction fee, which is good. However, it offers no rewards, while Discover Secured offers 1% cash back. Capital One Secured has a lower minimum deposit. Compare the features against your own situation—if you travel internationally, Chase is better; if you want rewards, Discover is better; if you have very limited funds, Capital One is better.