What the Chase Secured Credit Card Is

The Chase Secured Credit Card is a credit card that requires you to put down a cash deposit, which becomes your credit limit. If you have limited credit history, a low credit score, or are rebuilding after past credit problems, this card lets you borrow against money you've already set aside. Chase holds your deposit in a savings account while you use the card for purchases.

The deposit and credit limit work together: if you deposit $500, your credit limit is $500. You make monthly payments on what you charge, just like a regular credit card. The deposit stays in place until Chase decides to convert your account to an unsecured card—meaning you get your deposit back and keep the card without the deposit requirement.

This card reports to all three credit bureaus (Equifax, Experian, and TransUnion), so your payment history builds your credit score over time. That's the main reason to use it: to create a record that lenders can see.

Key Takeaways

  • Your cash deposit becomes your credit limit, and Chase holds it in a savings account while you use the card.
  • You pay interest on charges you don't pay off each month, just like a regular credit card, and the deposit does not reduce your interest charges.
  • On-time payments are reported to credit bureaus and build your credit history, which is the main benefit of using this card.
  • After 6 to 18 months of on-time payments, Chase may convert your account to an unsecured card and return your deposit.
  • The annual fee is $0, but you pay interest on any balance you carry from month to month.

Deposit Requirements and Credit Limits

You choose your deposit amount when you open the account, and it must be between $500 and $2,500. This deposit becomes your credit limit. If you deposit $1,000, you can charge up to $1,000 on the card. Chase holds your deposit in a savings account and pays a small amount of interest on it—currently a variable rate that changes with market conditions.

The deposit is separate from your monthly bill. If you charge $300 on the card, you owe $300 (plus interest if you don't pay it off). Your $1,000 deposit stays in the savings account untouched. You cannot withdraw the deposit while the account is open and secured.

If you want a higher credit limit later, you can request an increase. Chase may raise your limit without asking for an additional deposit, or it may ask you to add more money to your deposit account. There is no may provide of an increase.

Fees and Interest Rates

The Chase Secured Credit Card has no annual fee. You do not pay a fee just for having the card open.

You do pay interest if you carry a balance from one month to the next. The interest rate (called the APR, or annual percentage rate) varies based on your creditworthiness at the time you open the account. Chase typically offers rates between 18.99% and 24.99% for this card, though your rate depends on your credit profile. The rate can change after you open the account if the prime rate changes.

If you pay your full statement balance by the due date each month, you pay no interest. This is called the grace period. Interest only applies to balances you carry forward.

How to Open an Account

You can open a Chase Secured Credit Card online, by phone, or at a Chase branch. To start, go to Chase's website or call 1-800-935-9935. You'll need to provide your Social Security number, date of birth, income, and employment information. Chase will check your credit report.

If Chase approves you, you'll choose your deposit amount ($500 to $2,500) and how to fund it. You can transfer money from a Chase bank account, link an external bank account, or mail a check. The deposit must clear before your card is activated, which usually takes 3 to 5 business days after you submit it.

Once your deposit clears, your card will arrive in the mail within 7 to 10 business days. You set up it by calling the number on the back of the card or logging into your Chase online account. After set up, you can start using it right away.

Building Credit and Moving to an Unsecured Card

The main reason to use this card is to build credit history. Every payment you make is reported to Equifax, Experian, and TransUnion. On-time payments help your credit score go up. Late payments hurt it. After 6 to 18 months of on-time payments, Chase reviews your account to see if you're ready for an unsecured card.

If Chase decides to convert your account, they'll send you a notice. Your deposit is returned to you, usually within 5 to 7 business days. Your credit limit may stay the same or change. You keep the card and use it like a regular credit card with no deposit required.

Conversion is not automatic. Chase looks at your payment history, how much of your credit limit you use, and your credit score. If you miss payments or carry a very high balance, conversion may take longer or may not happen. There is no set timeline—it depends on your account activity.

If your account is not converted after 18 months, you can contact Chase to ask about your options. You may be able to request a conversion review, or you may want to close the account and try a different card.

Using Your Card Wisely

To build credit as fast as possible, use your card for small, regular purchases and pay the full balance each month. This shows lenders you can borrow and repay reliably. Charging $50 to $100 per month and paying it off in full is better than charging nothing or charging your entire limit.

Keep your balance well below your credit limit. Using more than 30% of your available credit can hurt your credit score, even if you pay on time. If your limit is $1,000, try to keep your balance under $300.

Set up automatic payments so you never miss a due date. Missing even one payment can delay conversion to an unsecured card and damage your credit score. You can set up automatic payments through your Chase online account to pay the full balance, a fixed amount, or the minimum payment.

Comparing the Chase Secured Card to Other Options

Other banks offer secured credit cards with similar terms. The Capital One Secured Mastercard, for example, has no annual fee and a deposit range of $200 to $2,500. The Discover Secured Credit Card has no annual fee and a deposit range of $200 to $2,500, and it offers cash back on purchases (1% on most purchases, 2% at gas stations and restaurants).

The main differences are the deposit range, interest rate, cash back rewards (if any), and how quickly the bank converts to an unsecured card. Chase does not offer cash back on the Secured Card, but some competitors do. Compare the interest rates and deposit minimums across cards to see which fits your situation.

If you already have a Chase bank account, the Secured Card may be easier to manage because your deposit and checking account are in one place. If you want cash back rewards, Discover's secured card offers that feature.

Frequently Asked Questions

Can I use my deposit to pay my bill?

No. Your deposit and your monthly bill are separate. If you charge $300 on the card, you owe $300 to Chase. Your deposit stays in the savings account and cannot be used to pay that bill. You must pay your bill from your regular bank account or income.

What happens if I miss a payment?

A late payment is reported to the credit bureaus and damages your credit score. If you're 30 days late, it appears on your credit report. If you're 60 or 90 days late, Chase may close your account and may not convert it to an unsecured card. You'll still owe the balance, and Chase may send it to a collection agency.

Can I increase my credit limit without adding more money to my deposit?

Chase may increase your credit limit without asking for an additional deposit if your account is in good standing. You can request a limit increase after 6 months of on-time payments. There's no may provide Chase will approve it, and they may ask you to increase your deposit instead.

How long does it take to get my deposit back?

Once Chase converts your account to an unsecured card, your deposit is returned within 5 to 7 business days. The money goes back to the bank account you used to fund the deposit. If you funded it by mail, the return may take longer.

What if I close the account before it converts?

You can close the account anytime. Your deposit is returned within 5 to 7 business days, but you must pay off any remaining balance first. Closing the account before conversion may hurt your credit score because it shortens your credit history and can raise your credit utilization ratio on other cards.