If you have no credit history or a low credit score, a secured credit card can be one of the fastest and safest ways to start building credit.
This guide explains how secured cards work, how much deposit you need, and how to use them correctly to improve your credit score.
What Is a Secured Credit Card?
A secured credit card requires a refundable cash deposit.
Your deposit usually becomes your credit limit.
Example:
- $300 deposit = $300 credit limit
Unlike prepaid cards, secured cards:
- Report to credit bureaus
- Help build credit history
- Can graduate to unsecured cards
If you’re new to credit, you may also want to read our full guide on
👉 How to Build Credit from Scratch (link to homepage or core guide).
How a Secured Card Builds Credit
A secured credit card helps you build:
- Payment history (35% of your score)
- Credit utilization (30% of your score)
- Length of credit history
To build credit safely:
✔ Use less than 30% of your limit
✔ Pay in full every month
✔ Never miss a payment
If you are an immigrant, see our detailed guide:
👉 How Immigrants Can Build Credit in the US
How Much Deposit Do You Need?
Most banks require:
- $200–$500 minimum deposit
Start small. You do not need a large limit to build credit.
When Does It Convert to a Regular Card?
Many secured cards review your account after 6–12 months.
If:
- You pay on time
- You keep low balances
Your card may:
- Upgrade to unsecured
- Return your deposit
After graduation, you may qualify for better options.
See: 👉 Best Credit Cards to Build Credit in 2026
Who Should Get a Secured Credit Card?
✔ New immigrants
✔ Students
✔ People with no credit
✔ People rebuilding credit
Final Thoughts
A secured credit card is not a “bad” card.
It is a tool.
Used correctly, it can:
- Raise your credit score in 3–6 months
- Open the door to better credit cards
- Help you qualify for loans and apartments
Start small. Stay consistent. Build smart.
Related Guides
- 👉 Read also: What Is a Good Credit Score?
- 👉 Learn more: What Affects Your Credit Score?
- 👉 New to the U.S.? See: How to Get Credit as an Immigrant