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Credit cards

Secured cards: rebuilding with a deposit

The short answer

A secured card is backed by a cash deposit that usually becomes your limit. It reports like any other card, which is what makes it useful.

How the deposit works

The deposit sits with the issuer. Some cards graduate to unsecured after a period of on-time payments.

336 × 280 or responsive

What to look for

Reporting to all three bureaus, a low annual fee, and a clear graduation policy.

Where this changes

Rules, rates and product availability differ by state and change over time. The figure above is a planning reference, not a quote — confirm current terms with the provider before relying on it.

What to avoid

Cards with high monthly fees and no path to unsecured status. Those cost money without building anything.

Building a history

On-time payments and low utilisation over several months is the mechanism. There is no faster route.

Sources

State insurance department publications; provider term sheets; published industry rate surveys. Source dates are shown beside each figure. Where a source could not be checked for your state, the page says so instead of guessing.

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