What is a secured credit card?

A real credit card that requires a refundable security deposit, which in most cases equals your credit limit (Experian). It reports your payments to the credit bureaus and builds credit just like a regular card.

Do you get your deposit back on a secured card?

Yes — it’s refundable, and it’s not a fee. Capital One’s and Discover’s terms (read October 20, 2026) return it when you close the account and pay the balance in full, or as a statement credit if the account is moved to unsecured.

Is a secured card the same as a prepaid card?

No. A prepaid card doesn’t report to the bureaus and builds no credit. A secured card is real credit that reports your payment history — that’s the point.

How long until a secured card builds my credit?

For a first FICO score, FICO needs at least one account open six months or more and one reported in the past six months; some issuers may later move you to an unsecured card on their own and others make you ask — timing varies by issuer, so don’t count on a date.

What’s a good deposit amount for a secured card?

Whatever you can comfortably set aside. Capital One’s Platinum Secured and Discover it Secured set the minimum at $49, $99 or $200 for a starting line of at least $200 (read October 20, 2026). A higher deposit usually means a higher limit, which makes it easier to keep your utilization low.

How Does a Secured Credit Card Work?

A secured credit card works just like a regular credit card, except you put down a refundable security deposit that usually becomes your credit limit. You use it, pay it off each month, and it reports to the credit bureaus — building your history. With a record of on-time payments, some issuers may upgrade you to a regular (unsecured) card and refund your deposit — whether and when is each issuer’s call, so don’t count on a date. The CFPB notes that fees and interest rates can be high on secured cards, but using one can help you establish a credit record.

If you’ve been turned down for a regular card because you have no credit history, the CFPB suggests trying a secured card. Here’s exactly how it works. (Starting completely from zero? How to Build Credit From Scratch.)

What is the deposit, and do I get it back?

When you open a secured card, you pay a refundable deposit, and in most cases your credit limit equals it: a $200 deposit usually gets you a $200 limit, Experian says. Some issuers give a higher line than the deposit: Capital One’s Platinum Secured and Discover it Secured list a $49, $99 or $200 minimum deposit for a starting line of at least $200 (both read October 20, 2026). The deposit lowers the lender’s risk: if you stop paying, they keep it — which is why secured cards are made for people with no credit history (the issuer still decides whether to approve you). But as long as you pay your bill, the deposit just sits there and typically comes back to you when you close the account and pay the balance in full, or when the issuer moves you to an unsecured card. It’s not a fee, and it’s not "spent" — think of it as a returnable safety net.

How is a secured card different from a prepaid card?

A secured card is real credit, not a prepaid or debit card:

You make purchases up to your limit.
You get a monthly statement and a due date.
Pick a secured card that reports to all three credit bureaus — that’s the whole point. Your on-time payments build history exactly like a regular card. (Reporting is issuer-dependent, so confirm your card reports to all three before applying.)
Most cards give a grace period on purchases: if yours does, pay the full statement balance by the due date each month and you pay no interest on purchases. A cash advance generally starts charging interest on the day you take it, the CFPB says. So pay in full, and skip cash advances.

That bureau reporting is what separates a real secured card from a prepaid card. A prepaid card just spends down money you load onto it and builds nothing.

How do I use a secured card to build credit?

Use it lightly — one small recurring charge (a subscription) is plenty. Keep your balance under 10% of the limit. (More on this lever: How Credit Utilization Works.)
Pay in full, on time, every month. Set autopay from your checking account. Payment history is about 35% of a FICO score in FICO’s published weights — the biggest factor in what your score adds up to.
Don’t carry a balance. A secured card’s interest rate can be high, and carrying a balance gains you nothing.

Do this month after month and your credit history builds with each on-time payment — ask your issuer how its upgrade review works; no date is promised.

When can I move to a regular card?

After a stretch of on-time payments, some issuers may review your account and "graduate" you to a regular unsecured card and refund your deposit. Don’t assume it’s automatic or on a schedule — ask your issuer how its review works, and check your card’s current upgrade policy. If your card doesn’t graduate, you can apply for an unsecured card on your own later, as your history grows.

How do I choose a secured card?

Compare three things: the fees (look for no annual fee), whether the issuer says the card reports to all three bureaus, and what it says about moving you to an unsecured card. Many banks and credit unions offer secured cards, the CFPB says, so compare each one the same way. Avoid cards whose fees eat a small limit: in a 2015 case, the CFPB described cards with a $300 limit and a $75 upfront fee, a quarter of the line on day one. Before you apply, read the card’s pricing table and look for a $0 annual fee and no monthly maintenance fee.

New to the US or no SSN? A secured card is one way to start — see credit cards you can apply for with an ITIN and how to build credit as an immigrant.

Why isn’t the card I expected on your list?

You’ve found a card or a credit-builder app on another site or in an ad, but neither this guide nor our card ladder (the card list in your free VenturePath account) suggests it.

Some products take no new applicants, some ask for a Social Security number, and for a fair credit score, our rule leaves out new cards with an annual fee.

Here is what each company’s own site said when we read it on October 20, 2026.

Not open to new applicants, or waitlist only

Chime Credit Builder. Chime’s help center says: "Credit Builder is a legacy product. New Credit Builder accounts are no longer available."
Firstcard Secured Credit Builder Card. On Firstcard’s card page, every button for the card reads "Join Waitlist".
Kikoff Secured Credit Card. Kikoff’s site says: "We previously offered a separate Kikoff Secured Credit Card, but it's no longer offered."

Ask for a Social Security number (SSN), which matters if you don’t have one

Self Credit Builder Account. Self’s help center, in an article dated May 21, 2024: "A valid bank account and Social Security Number are required."
Chime. Chime’s help center says membership starts with a Chime checking account, and its list of what you’ll need starts with "A valid Social Security number."

Outside our rule for fair scores (580–669)

Capital One QuicksilverOne Rewards and SavorOne Rewards. Capital One’s page of cards for fair credit lists a $39 annual fee for each. Our rule for scores of 580–669: if you already have a secured card, ask its issuer about an upgrade first; if you apply for a new card, choose one with no annual fee.

This isn’t a full list of the cards we don’t name. As our How We Make Money page says, no issuer can pay us to add a card, move it up the list, or change what we say about it.

Before you apply for any card, open its page on the issuer’s own site and check three things: whether it takes new applications, which ID number it asks for, and the annual fee in its pricing table.

What does each issuer publish about its secured card?

You’ve narrowed it to two secured cards. Both pages open with a refundable deposit that can start at $49. The details sit lower down, in each card’s rates and terms: how high the line can go, who isn’t eligible and how the deposit comes back.

Capital One and Discover publish each card’s deposit, fees, starting line, bureau reporting and who isn’t eligible, but neither gives a date for any move to an unsecured card.

Below, each card has the same fields in the same order, with the day we read them. It isn’t a ranking: the issuer decides every application, and neither issuer guarantees an upgrade.

Capital One Platinum Secured at a glance

Refundable deposit: a "$49, $99 or $200 minimum refundable deposit," paid by bank transfer within 35 days of approval.
Annual and monthly fee: annual fee "None." The rates table lists no monthly fee.
Credit line: at least $200. A bigger deposit before the account opens gets a higher line, up to a maximum "between $500 and $1,000 based on your creditworthiness."
Reports to: "the three major credit bureaus."
Review and upgrade to unsecured: "With responsible card use, you could earn back your deposit and upgrade to a standard, unsecured Platinum card." Capital One’s upgrade article (February 26, 2026) adds: "There isn’t a set timeline."
Numbers and documents: you’re not eligible without "a valid Social Security Number or Individual Taxpayer Identification Number." Capital One’s ITIN article (April 30, 2026) lists this card among cards "you may be able to get with an ITIN." Passport: not named. The terms add: "We may also ask to see your driver’s license or other identifying documents."
Published rules: Capital One’s secured cards "don’t require a credit score to apply," but "you must meet certain conditions for your income and existing debt." Among other reasons, you’re not eligible after 3 or more Capital One card applications in the last 30 days, with a past-due Capital One card, or with a credit freeze or lock that blocks Capital One. The income rule is below.
Not published: when it reviews accounts for an upgrade, or what an account needs to qualify; which credit bureau it checks; how it picks your deposit.
Checked: October 20, 2026, on Capital One’s card page and its rates and terms.

Discover it Secured at a glance

Discover merged into Capital One on May 18, 2025. This card’s application terms are Capital One’s.

Refundable deposit: "$49, $99, or $200 based on creditworthiness," paid by bank transfer within 35 days of approval.
Annual and monthly fee: annual fee "None." The rates table lists no monthly fee.
Credit line: at least $200. A bigger deposit before the account opens gets a higher line, up to a maximum set at approval, "from $1,000 to $3,000 based on your creditworthiness."
Reports to: "the three major credit bureaus."
Review and upgrade to unsecured: "When you establish a positive track record, you’ll earn your deposit back and upgrade to the Discover it Cash Back Credit Card." The terms put it as "If your account is deemed eligible for unsecuring, we will return your security deposit to you as a statement credit."
Numbers and documents: you’re not eligible without "a valid Social Security Number or Individual Taxpayer Identification Number." Capital One’s ITIN article (April 30, 2026) doesn’t name this card. Passport: not named. The terms add: "We may also ask to see your driver’s license or other identifying documents."
Published rules: "No credit score required to apply," with the footnote "We may use credit scores if available." Among other reasons, you’re not eligible after 2 or more Capital One card applications in the last 30 days, with a past-due Capital One card, or with a credit freeze or lock that blocks Capital One. The income rule is below.
Not published: what counts as a "positive track record," or when Discover checks for one; which credit bureau it checks; how it weighs "creditworthiness."
Checked: October 20, 2026, on Discover’s card page and its rates and terms.

What do both cards’ terms say?

Both cards’ terms share an income rule. If you list no assets, your monthly income must exceed your rent or mortgage payment by at least $425 ($215 for a student). Example: with rent of $1,200 a month, that means at least $1,625 a month ($1,200 + $425), or $19,500 a year ($1,625 × 12). Reaching that line isn’t approval: both terms say "approval is based upon satisfying Capital One's credit standards."

It’s a mistake to treat the deposit as a payment. Both issuers say it doesn’t cover your monthly bill: you still owe at least the minimum payment. The terms return the deposit when you close the account and pay the balance in full, or as a statement credit if the account is moved to unsecured.

Before you apply, open the card’s rates and terms and read the list that begins "I understand that I am not eligible for this offer if." If you froze your credit, both lists count a freeze that blocks Capital One. The FTC says lifting a freeze costs nothing, and you can put it back when you’re done.

The bottom line: a secured card is a normal credit card with training wheels — a refundable deposit, made for people starting with no history (approval is still the issuer’s call). Use it lightly and pay on time; each on-time payment the issuer reports adds to your credit history.