Banks and credit unions are the main sources for secured cards, but the specific card you can open depends on your credit history and which lender you approach
A secured credit card requires you to put down a cash deposit that becomes your credit limit — typically $200 to $2,500. That deposit stays in a separate account while you use the card and make payments. Most banks, credit unions, and online lenders offer at least one secured card product. The card you can actually open depends on your current credit score, whether you have a banking relationship already, and which lender's underwriting standards you meet.
You do not need perfect credit to open a secured card. Many lenders accept applicants with no credit history, recent late payments, or scores below 600. What matters is that you have a deposit to put down and a way to make monthly payments. The application process is the same as a regular credit card — you fill out a form, the lender pulls your credit report, and they approve or deny you within days.
Key Takeaways
- Major banks like Capital One, Discover, and Bank of America each offer secured cards with different deposit minimums and fee structures.
- Credit unions often have lower fees and deposit requirements than national banks, but you must be a member to open an account.
- Online lenders and smaller banks may approve you faster if you have limited credit history or recent negative marks.
- Your deposit is held as collateral and does not count as a payment — you still make monthly payments from your regular bank account.
- After 6 to 18 months of on-time payments, many issuers will convert your secured card to an unsecured card and return your deposit.
National banks with secured card programs
Capital One is one of the largest secured card issuers in the United States. Their Secured Mastercard has a minimum deposit of $200 and no annual fee. Capital One reports your payment history to all three credit bureaus (Equifax, Experian, and TransUnion), which means your activity builds your credit score. You can open this card online or at a Capital One branch if you have one nearby.
Discover also offers a secured card called the Discover it Secured Credit Card. The minimum deposit is $200, and there is no annual fee. Discover reports to all three bureaus and offers cash back on purchases — 2% at gas stations and restaurants for the first year, then 1%, and 1% on all other purchases. Discover has no physical branches, so you apply entirely online.
Bank of America offers the BankAmericard Secured Credit Card with a $300 minimum deposit and no annual fee. It reports to all three bureaus. Bank of America has branches nationwide, so you can open the account in person if you prefer, though online applications are also available.
U.S. Bank and Wells Fargo each offer secured cards as well. U.S. Bank's Secured Visa Card requires a $500 minimum deposit. Wells Fargo's Secured Credit Card requires a $300 minimum deposit. Both have annual fees (U.S. Bank charges $25; Wells Fargo charges $0 for the first year, then $25 after). Both report to all three bureaus.
Credit unions and smaller regional lenders
Credit unions typically charge lower fees and accept lower credit scores than national banks. Many credit unions offer secured cards with deposit minimums as low as $300 and no annual fee. The catch is that you must be a member of the credit union to open an account, which usually requires living or working in a specific geographic area or belonging to a particular employer or organization.
To find a credit union near you, use the CO-OP Network locator or the Alliant Credit Union locator online. Call ahead and ask whether they offer a secured card and what the deposit requirement is. Some credit unions require you to open a regular savings account first, which may have a minimum balance requirement of $25 to $100.
Smaller regional banks — often community banks with 5 to 20 branches — frequently offer secured cards with flexible terms. These banks may approve you faster if you have no credit history or recent defaults. Search for "community bank secured credit card" plus your state name to find options in your area. Call the bank's credit card department directly to ask about their secured card product and current requirements.
Online lenders and fintech companies
Online lenders like LendingClub and Chime offer secured cards without requiring you to have an existing account with them. These companies often approve applications within 24 to 48 hours and can fund your card immediately after approval. Deposit minimums vary but are often $200 to $500.
Chime, which is primarily a mobile banking platform, offers a secured card through a partnership with Visa. You can open a Chime account and apply for the secured card entirely through their mobile app. The deposit requirement is $200, and there is no annual fee. Chime reports to all three credit bureaus.
The trade-off with online lenders is that they may have higher interest rates (APRs) than traditional banks. Before you apply, check the APR and any annual or monthly fees. Online lenders are useful if you need a card quickly or if you have been turned down by traditional banks.
What happens after you open the account
Once your application is approved, you will receive a confirmation email or letter with your account details. You then transfer your deposit to the lender — usually by electronic transfer from your bank account or by mailing a check. The lender holds this deposit in a restricted savings account. Your credit limit equals your deposit amount (so a $500 deposit gives you a $500 limit).
You receive your physical card in the mail within 7 to 10 business days. You can begin using it immediately. Every purchase you make is charged against your credit limit, just like a regular credit card. You make monthly payments from your regular checking or savings account — the deposit does not pay your bill automatically.
The lender reports your payment history to the credit bureaus each month. On-time payments build your credit score. Late or missed payments damage it, just as they would with any other card. After 6 to 18 months of consistent on-time payments, many issuers will review your account and convert it to an unsecured card, returning your deposit to you. Some lenders do this automatically; others require you to request it.
Comparing deposit requirements and fees
| Lender | Minimum Deposit | Annual Fee | Reports to Credit Bureaus |
|---|---|---|---|
| Capital One Secured Mastercard | $200 | $0 | All three |
| Discover it Secured | $200 | $0 | All three |
| Bank of America Secured | $300 | $0 | All three |
| U.S. Bank Secured Visa | $500 | $25 | All three |
| Wells Fargo Secured | $300 | $0 first year, $25 after | All three |
| Chime Secured Visa | $200 | $0 | All three |
The lowest-cost options are Capital One, Discover, and Chime, all with $200 minimums and no annual fees. If you have $500 available, U.S. Bank's card is competitive despite the $25 annual fee because it reports to all three bureaus and has a strong conversion track record. Credit unions in your area may offer better terms than any of these — call ahead to compare.
How to choose which lender to apply to
Start by checking whether you already have a banking relationship with any lender that offers a secured card. If you have a checking account at Bank of America or Wells Fargo, opening their secured card may be simpler because the bank already has your information on file. Some banks offer existing customers faster approval or waived fees.
If you do not have an existing relationship, compare the deposit requirement against how much cash you can set aside. A $200 deposit is easier to manage than a $500 deposit if your cash flow is tight. Check the annual fee and APR for each card you are considering. A card with no annual fee and a lower APR is better, all else equal.
If you have been turned down by traditional banks or have no credit history at all, start with an online lender or a credit union. These lenders often have more flexible underwriting. If you are a member of a credit union, contact them first — their rates and fees are usually the best available.
Apply to only one lender at a time. Each application triggers a hard inquiry on your credit report, which temporarily lowers your score by a few points. Multiple applications in a short period can hurt your score more than a single application.
Frequently Asked Questions
Can I use my deposit to make a payment on the card?
No. Your deposit is held separately and does not pay your monthly bill. You must make payments from your regular bank account each month. The deposit stays in place as collateral for the entire time you hold the card. Only after the card is converted to unsecured will the lender return your deposit to you.
What credit score do I need to open a secured card?
Most secured card issuers do not publish a minimum credit score. Capital One, Discover, and Chime approve applicants with scores as low as 300 or with no credit history at all. If you have been denied by one lender, try another — underwriting standards vary. Credit unions often approve applicants with lower scores than national banks.
How long does it take to convert a secured card to unsecured?
Conversion typically happens after 6 to 18 months of on-time payments. Capital One and Discover usually convert within 6 to 9 months. Bank of America and Wells Fargo may take 12 to 18 months. Some lenders review your account automatically; others require you to request conversion. Check your cardholder agreement or call the lender to ask about their conversion timeline.
Will opening a secured card hurt my credit score?
The application itself causes a small temporary drop (usually 5 to 10 points) because of the hard inquiry. However, once the account is open and you make on-time payments, your score will begin to recover and then improve. The benefit of building payment history outweighs the initial dip.
Can I increase my credit limit on a secured card?
Yes, but only by increasing your deposit. If you started with a $200 deposit and want a $500 limit, you would deposit an additional $300. Some lenders allow you to increase your deposit after 6 to 12 months of on-time payments. Contact your lender to ask about their policy.