Where to Get a Secured Credit Card and How to Open One

You can get a secured credit card from most major banks, credit unions, and online lenders

A secured credit card is issued by a bank or credit union after you deposit cash as collateral. That deposit sits in a savings account while you use the card to make purchases and build credit history. You do not need good credit to open one — most issuers accept applicants with no credit history or past credit problems.

The main places to get a secured card are traditional banks (like Wells Fargo, Bank of America, or Chase), online banks (like Chime or LendingClub), and credit unions. Each has different deposit requirements, interest rates on the deposit account, and rules about when you can graduate to an unsecured card. The process usually takes one to two weeks from application to receiving your card in the mail.

Key Takeaways

• Most banks require a cash deposit between $200 and $2,500 to open a secured card, and that money stays in your account while you use the card.
• Your credit limit is typically equal to your deposit amount, so a $500 deposit gives you a $500 spending limit.
• You can compare secured cards online by checking the deposit requirement, annual fee, interest rate on the deposit account, and the issuer's policy for converting to an unsecured card.
• Credit unions often have lower fees and deposit requirements than large banks, but may have fewer cardholders in their network.

How to find secured cards from major banks

The largest U.S. banks all offer secured cards. Chase offers the Secured Credit Card, which requires a $200 minimum deposit and charges a $39 annual fee. Bank of America offers the Secured Credit Card with a $300 minimum deposit and a $29 annual fee. Wells Fargo offers the Secured Credit Card with a $300 minimum deposit and no annual fee, though the interest rate on the deposit account is typically lower than at other banks.

You can visit each bank's website directly and search for "secured credit card" to see current terms. Most banks let you start the application online, though you may need to visit a branch or call to complete it. If you already have a checking or savings account at one of these banks, opening a secured card is usually faster because they already have your information on file.

Online banks and fintech lenders

Online-only banks and financial technology companies often have lower deposit minimums and higher interest rates on the deposit account. LendingClub offers a secured card with a $200 minimum deposit and no annual fee. Chime offers a secured card to members of its checking account, with a $200 minimum deposit. Deserve offers a secured card with a $200 minimum deposit and no annual fee, though it requires a Social Security number and a U.S. address.

The trade-off is that online lenders typically have smaller networks of merchants and ATMs. If you travel frequently or need to withdraw cash, a card from a traditional bank may be more practical. Online banks are fastest for approval — many give you a decision within minutes and let you start using a digital version of the card immediately while waiting for the physical card to arrive.

Credit unions and community banks

Credit unions often offer secured cards with lower fees and deposit requirements than national banks. Many credit unions require a deposit of only $200 to $500 and charge no annual fee. The interest rate paid on your deposit account is usually higher at credit unions than at large banks, which means your money earns more while it sits there.

To open a secured card at a credit union, you typically need to become a member first. Membership usually requires living or working in a specific area, belonging to a certain employer or profession, or being a family member of an existing member. You can search for credit unions near you using the CO-OP Network locator or the Alliant Credit Union locator online. Call ahead to confirm they offer secured cards and what their current deposit requirement is, since these vary by location.

What information you need to provide

When you apply for a secured card, the issuer will ask for your Social Security number, date of birth, current address, and employment information. They will also run a hard inquiry on your credit report, which means they check your credit history with one of the three major credit bureaus (Equifax, Experian, or TransUnion). This inquiry may lower your credit score slightly for a few months, but it does not affect your ability to open the card.

You will need to provide proof of identity (a driver's license or passport) and proof of address (a utility bill or lease) if you apply in person or by mail. Online applications usually let you upload photos of these documents. Have your bank account information ready if you want to fund the deposit from an existing account, or be prepared to transfer money after approval.

Comparing deposit requirements and fees

The deposit requirement is the most important number to compare, because it determines your credit limit. A $200 deposit gives you a $200 limit; a $2,500 deposit gives you a $2,500 limit. Most people start with $300 to $500 because that is enough to build credit history without tying up too much cash.

Annual fees range from $0 to $95 depending on the issuer. Some cards charge no annual fee but pay lower interest on the deposit account. Others charge an annual fee but pay higher interest. Over a year, the difference may be small — a $39 annual fee versus a 0.01% interest rate difference on a $500 deposit works out to roughly the same cost. Look at the total cost, not just one number.

Also check whether the issuer charges a fee to convert your secured card to an unsecured card later. Most do not, but some charge $25 to $50 for the conversion. This matters if you plan to keep the card long-term and eventually graduate to an unsecured product.

The application process and timeline

Online applications are fastest. You fill out the form, provide your Social Security number, and receive a decision within minutes to a few hours. The issuer then sends you a welcome packet with instructions for funding your deposit. You transfer the money to the deposit account, and the card is mailed to you within 7 to 14 business days.

In-person applications at a bank branch take longer but may be approved on the spot. You bring your ID and proof of address, complete the application with a banker, and fund the deposit immediately. The card is still mailed to you, so you wait the same 7 to 14 days to receive it.

Some issuers offer a temporary digital card number you can use online while waiting for the physical card. This lets you start building credit history right away. Check whether your issuer offers this before you apply.

Frequently Asked Questions

Can I use my secured card right away or do I have to wait for the physical card?

Most issuers give you a digital card number immediately after approval, which you can use for online purchases and contactless payments through your phone. The physical card arrives in 7 to 14 business days. Some issuers require you to wait for the physical card before using it at stores.

What happens to my deposit if I close the card?

Your deposit is returned to you, usually within 5 to 10 business days after you close the account. The issuer sends it to the bank account you provided during application. If you have an outstanding balance on the card, the issuer may hold the deposit until the balance is paid off.

Can I increase my credit limit without adding more money?

Some issuers let you increase your limit after six to twelve months of on-time payments, without depositing more money. Others require you to add to your deposit to raise your limit. Check the issuer's policy before you apply, because this varies widely.

Do I need to have a bank account at the issuer to get their secured card?

No. You can open a secured card at any bank or credit union without having a checking or savings account there. However, having an existing account may speed up the application process because the issuer already has your information.

What is the difference between a secured card and a prepaid card?

A secured card reports your payment history to credit bureaus, which builds your credit score. A prepaid card does not report to credit bureaus and does not build credit. Secured cards also have lower fees and better fraud protection than most prepaid cards.