Where to Get a Secured Credit Card — Banks, Credit Unions, and Online Lenders

The main places that offer secured cards

You can get a secured credit card from three types of lenders: traditional banks, credit unions, and online-only lenders. Each route has different requirements and deposit amounts, so the best choice depends on whether you already have a relationship with a bank, whether you belong to a credit union, and how quickly you want to open the account.

Banks like Capital One, Discover, and U.S. Bank all offer secured cards directly through their websites or in branches. Credit unions often have secured card programs for members, sometimes with lower deposits or better terms than banks. Online lenders like Chime and LendingClub also offer secured cards, usually with faster approval and the ability to open an account entirely on your phone.

The deposit you'll need ranges from $200 to $2,500 depending on the lender and the card. That deposit becomes your credit limit — if you deposit $500, you get a $500 limit. The deposit sits in a savings account while you use the card, and you don't lose access to it.

Key Takeaways

• Banks, credit unions, and online lenders all offer secured cards, each with different deposit minimums and approval timelines.
• Your deposit amount becomes your credit limit, and the money stays in an account you can access once you graduate to an unsecured card.
• Credit unions often have lower deposit requirements and better customer service than banks, but you must be a member to open an account.
• Online lenders approve faster and let you manage everything on your phone, but may charge higher annual fees than traditional banks.
• Before opening an account, compare the annual fee, interest rate, and how long the lender reports to all three credit bureaus.

Banks and what they require

Major banks offer secured cards through their main websites. Capital One Secured Mastercard requires a $200 minimum deposit and charges a $39 annual fee. Discover Secured Card has a $200 minimum deposit and no annual fee, but you need a Social Security number and a U.S. address. U.S. Bank Secured Visa requires a $500 minimum deposit and charges a $29 annual fee.

Most banks require you to have a checking or savings account with them before you open a secured card, though some will let you open both at the same time. The application takes 10 to 15 minutes online, and approval usually comes within one to three business days. Once approved, your card arrives in the mail within 7 to 10 days.

Banks report your payment history to all three credit bureaus — Equifax, Experian, and TransUnion — which means every on-time payment builds your credit score. Most banks will convert your secured card to an unsecured card after 6 to 18 months of on-time payments, at which point your deposit is returned to you.

Credit unions and membership requirements

Credit unions typically offer secured cards only to members, so you'll need to join first. Membership requirements vary: some credit unions are open to anyone in a geographic area, others require you to work for a specific employer, and some are open only to people in certain professions or organizations. You can search for a credit union near you using the CO-OP Network locator on the Credit Union National Association website.

Credit union secured cards often have lower deposit minimums than banks — many start at $300 or less — and some charge no annual fee at all. Interest rates are also typically lower. The tradeoff is that the application process is slower: you may need to visit a branch in person, and approval can take one to two weeks.

Once you're a member, opening a secured card is straightforward. You'll deposit money into a savings account, and that amount becomes your credit limit. Credit unions report to all three bureaus, and many will graduate you to an unsecured card after 12 months of on-time payments.

Online lenders and faster approval

Online-only lenders like Chime, LendingClub, and Self approve secured card applications in minutes and let you start using your card within days. Chime's Secured Visa requires a $200 deposit and charges no annual fee. LendingClub's Secured Credit Card requires a $500 deposit and charges a $39 annual fee. Self's Secured Visa requires a $300 deposit and charges a $9 annual fee.

The entire process happens on your phone or computer. You upload your ID, provide your Social Security number, and link a bank account. Approval is instant or within hours. Your card is usually ready to use within one to three business days, either as a digital card in your phone's wallet or as a physical card in the mail.

Online lenders report to all three credit bureaus, and many graduate you to an unsecured card after 6 to 12 months of on-time payments. The downside is that online lenders often charge higher annual fees than banks, and customer service is usually chat-based rather than phone-based. If you need to speak to a person, response times can be slow.

What to compare before you choose

Before opening an account, look at four things: the annual fee, the interest rate (called the APR), whether the lender reports to all three credit bureaus, and how long it takes to convert to an unsecured card.

Annual fees range from $0 to $39. If you're on a tight budget, prioritize lenders with no annual fee — Discover and Chime both offer this. Interest rates vary from about 18% to 24% APR depending on the lender and your credit history. The rate matters less if you pay your balance in full each month, but if you carry a balance, a lower rate saves you money.

Reporting to all three bureaus is standard, but confirm it before you open an account. Some smaller lenders report to only one or two bureaus, which means your payment history won't help your credit score as much. Finally, check how long the lender typically takes to convert you to an unsecured card. Faster conversion means you get your deposit back sooner and can close the secured card if you want to.

How to open an account step by step

The process is nearly identical across all lenders. First, go to the lender's website or app and click "Open an Account" or "Apply Now." You'll be asked for your name, address, date of birth, Social Security number, and employment information. This takes about 5 to 10 minutes.

Next, you'll review the terms and conditions, including the annual fee, interest rate, and credit bureau reporting. Read these carefully — they're not long, and they tell you exactly what you're signing up for. Then you'll submit your application.

If you're approved, you'll be asked to fund your account. For banks and credit unions, you may need to set up a checking account first or link an existing bank account. For online lenders, you'll link your bank account and authorize a transfer of your deposit amount. The money moves within one to three business days, and your card is activated once the deposit clears.

What happens if you're denied

Secured cards are designed for people rebuilding credit, so denials are rare. If you are denied, it's usually because you don't have a Social Security number, you're not a U.S. resident, or you have an active fraud alert on your credit file. Some lenders also deny applicants with very recent bankruptcies or multiple recent late payments.

If you're denied by one lender, try another. Different lenders have different standards. If you're denied across the board, contact the three credit bureaus to check for errors on your credit report. You can request a free report from each bureau at AnnualCreditReport.com. If you find errors, dispute them — correcting them may make you may be able to access for a secured card.

Frequently Asked Questions

Can I use my secured card right away, or do I have to wait?

Most lenders activate your card once your deposit clears, which takes one to three business days. Some online lenders give you a digital card you can use immediately while you wait for the physical card to arrive. Banks and credit unions typically require you to wait for the physical card before you can use it.

What if I need a higher credit limit?

Once you've made on-time payments for several months, you can ask your lender to increase your credit limit. Some lenders will increase it without asking for an additional deposit. Others will let you deposit more money to raise your limit. Check your lender's policy before you open an account if a higher limit matters to you.

Do I lose my deposit if I close the card?

No. Your deposit is always yours. When you close the card or graduate to an unsecured card, your lender returns the deposit to the bank account you linked to your card. This usually takes one to two weeks.

Will a secured card hurt my credit score?

No. Opening a secured card causes a small, temporary dip in your score because the lender does a hard inquiry. But as you make on-time payments, your score will rise. The whole point of a secured card is to build credit history, so it's designed to help you, not hurt you.

Can I have more than one secured card?

Yes, but it's usually not necessary. One secured card is enough to build credit. Opening multiple cards in a short time can lower your score because each application triggers a hard inquiry. Wait at least six months after opening your first secured card before opening a second one.