A secured credit card is an excellent tool for building or improving your credit history when the issuer reports payment history to the nationwide credit bureaus. You might want to apply for one if you’re building credit from scratch or you’re rebuilding your credit after financial hardship. In some cases, the issuer may convert your account to an unsecured credit card after a period of timely payments.
Secured credit cards may have more lenient approval standards, making them a good choice for someone without a credit history or with poor credit. They generally also report to all three credit bureaus, so responsible usage can help build your credit score.
Credit cards, when used responsibly, can improve your credit profile. If you want to build your credit but don’t want the option to potentially overspend, a secured credit card could be an important stepping stone.
The Secured Chime Credit Builder Visa® Credit Card is issued by The Bancorp Bank, N.A. or Stride Bank, N.A., pursuant to a license from Visa U.S.A. Inc. and may be used everywhere Visa credit cards are accepted. Please see the back of your card for its issuing bank.
¹Out-of-network ATM withdrawal and OTC advance fees may apply. View The Bancorp agreement or Stride agreement for details; see back of card for issuer.
²To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime® Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
Contact your credit card issuer directly—either online or by phone—to cancel a secured credit card. You may not be able to cancel a secured card until you pay the balance in full. Keep in mind the length of your credit history, including your oldest account, is factored into your credit score. If your secured card is your first credit card account, it may be advisable to keep it open, even if you open and use other accounts. If your card provider graduates you to an unsecured card, that account will retain the original account opening date.
Yes, you should receive your deposit back on a secured credit card so long as you pay off the entire balance before closing the card or if your card provider graduates you to an unsecured card. Read the card’s terms to know how and when you can see your deposit returned.
Some credit cards charge annual fees. Check a secured credit card’s terms and conditions before applying to see if a card you’re considering has an annual fee.
Businesses that are new to building credit can also apply for a business secured credit card. Bank of America offers the Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card * . With no annual fee and 1.5% cash back on all purchases, new businesses can earn cash back while helping to build their credit profile.
No guarantee exists regarding approval for any credit card. But secured credit cards are designed to help people build better credit. If you have fair, poor or no credit, you should have a better chance of receiving approval for a secured card than unsecured credit cards.
*The information for the following card(s) has been collected independently by Forbes Advisor: U.S. Bank Altitude® Go Secured Visa® Card, First Tech Platinum Secured Mastercard®, Bank of America® Travel Rewards Secured Credit Card, Bank of America® Customized Cash Rewards Secured Credit Card, U.S. Bank Cash+® Secured Visa® Card, Varo Believe Card, Bank of America® Business Advantage Unlimited Cash Rewards Secured credit card . The card details on this page have not been reviewed or provided by the card issuer.
Information provided on Forbes Advisor is for educational purposes only. Your financial situation is unique and the products and services we review may not be right for your circumstances. We do not offer financial advice, advisory or brokerage services, nor do we recommend or advise individuals or to buy or sell particular stocks or securities. Performance information may have changed since the time of publication. Past performance is not indicative of future results.
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Credit Cards Expert WriterFor more than 10 years, Jon Nickel-D'Andrea has been a sought-after expert on how to travel the world using rewards points and miles. Jon has been featured in local and national publications and as a speaker at various seminars across the world. Combining his deep knowledge of credit cards, rewards programs, airlines and hotels with his unique style and sense of humor, Jon makes the complex web of these programs more fun and easy to understand. He lives in Seattle with his husband Ben and their 4-year-old beagle pup.
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