What the Midas Credit Card Is
The Midas Credit Card is a secured credit card issued by Midas Financial Services, designed for people building or rebuilding credit. You put down a cash deposit, and that deposit becomes your credit limit. The card reports your payment activity to the three major credit bureaus—Equifax, Experian, and TransUnion—so on-time payments help raise your credit score over time.
This is not a rewards card or a fuel-specific card. It is a general-purpose card that works anywhere Mastercard is accepted. The main draw is that it accepts applicants with limited credit history, no credit history, or damaged credit—situations where a standard unsecured card would be rejected.
Midas Financial Services also operates Midas auto repair shops, but the credit card itself is independent. You do not have to use it at Midas locations, and using it elsewhere does not affect your auto service relationship.
Key Takeaways
- The Midas Credit Card requires a cash deposit between $200 and $2,500, which becomes your credit limit.
- Annual percentage rate (APR) and fees vary based on your creditworthiness at the time you open the account.
- On-time payments are reported to all three credit bureaus, which can help improve your credit score if you pay consistently.
- After a period of responsible use—typically 6 to 18 months—you may be able to convert the card to an unsecured card and recover your deposit.
How the Deposit and Credit Limit Work
When you open a Midas Credit Card account, you choose a deposit amount between $200 and $2,500. That deposit sits in a savings account held by the card issuer and serves as collateral. Your credit limit equals your deposit amount—so a $500 deposit gives you a $500 limit.
The deposit is not a fee. It is your money, held separately from the card issuer's operating funds. You can withdraw it or close the account and recover it, though the timing depends on your account status and whether you have an outstanding balance.
Your deposit does not earn interest. The card issuer holds it in a non-interest-bearing account, so you are not building savings through the deposit itself. The benefit is the credit-building opportunity, not a return on the deposit.
Fees and Interest Rates
The Midas Credit Card carries an annual fee, though the exact amount depends on your credit profile at the time you open the account. The card issuer may also charge an annual percentage rate (APR) on purchases and cash advances. Both the fee and the APR can vary—there is no single rate that applies to all cardholders.
Late payment fees, over-limit fees, and returned-payment fees may also explore if you miss a payment or exceed your credit limit. The card issuer should disclose all fees and rates in the terms and conditions before you open the account.
Because this is a secured card, the APR is typically higher than what you would see on an unsecured card with good credit. This reflects the higher risk the issuer takes on applicants with limited or poor credit history.
How Payment Reporting Works
The Midas Credit Card reports your account activity to Equifax, Experian, and TransUnion each month. This means every on-time payment, late payment, and balance you carry shows up on your credit report. Over time, a pattern of on-time payments can raise your credit score.
The card issuer reports whether you paid on time, how much you owed, and how much of your available credit you used. This mix of information—payment history, credit utilization, and account age—feeds into credit score calculations.
Late payments also report to the bureaus and can hurt your score. A single late payment can lower your score by 50 to 100 points or more, depending on how late it is and your overall credit profile. Staying current is the main reason to open this card.
Converting to an Unsecured Card
After you have used the Midas Credit Card responsibly for a set period—usually 6 to 18 months of on-time payments—the card issuer may offer to convert your account to an unsecured card. When this happens, your deposit is returned to you, and your credit limit may increase.
Conversion is not automatic. The card issuer reviews your account and decides whether to offer it based on your payment history and credit score improvement. If you are offered conversion, you can accept or decline. If you decline, your account remains secured and your deposit stays on hold.
Some cardholders never receive a conversion offer. If your account remains in good standing but the issuer does not offer conversion, you can contact them and ask whether you are may be able to access. Policies vary by issuer.
When to Use the Midas Credit Card
The Midas Credit Card makes sense if you are rebuilding credit after a period of missed payments, collections, or bankruptcy, or if you have no credit history and need to start building one. The secured structure removes the issuer's risk, so approval is much more likely than with an unsecured card.
It also makes sense if you have been denied for other cards and need a way to demonstrate responsible credit use. The monthly reporting to the bureaus creates a visible track record that can help you move to better cards later.
The card is less useful if you already have good credit or access to unsecured cards with lower fees and better terms. In that case, a standard rewards card or a card with no annual fee would be a better choice.
Alternatives to the Midas Credit Card
Other secured cards exist, including the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa Card. Each has different deposit minimums, fees, and paths to conversion. If you are considering a secured card, comparing these options can help you find the best fit.
A credit-builder loan is another path if you want to build credit without a credit card. You borrow a small amount (usually $500 to $1,000), make monthly payments, and the lender reports the payments to the bureaus. At the end of the loan term, you get the money back. This approach works well for people who want to avoid credit card debt entirely.
If you have a family member or friend with good credit, becoming an authorized user on their card is another option. Their payment history reports to your credit file, which can boost your score without requiring a deposit or opening your own account. Not all card issuers report authorized user activity, so confirm this before asking.
Frequently Asked Questions
How long does it take to get approved for the Midas Credit Card?
Approval timelines vary, but many applicants hear back within a few business days. Once approved, the physical card typically arrives within 7 to 10 business days. You may be able to use the card for online purchases before the physical card arrives if the issuer offers that option.
Can I increase my credit limit after I open the account?
Your credit limit is tied to your deposit, so increasing it requires depositing more money. Some card issuers allow you to add to your deposit after the account is open. Contact the issuer to ask whether this option is available and what the process is.
What happens if I miss a payment on the Midas Credit Card?
A missed payment reports to the credit bureaus and can lower your credit score. You will also owe a late fee. If you miss a payment, contact the issuer as soon as possible to bring the account current. The sooner you pay, the less damage to your credit.
Do I have to use the card to build credit, or can I just hold it?
You have to use the card for the issuer to report activity to the bureaus. Holding an unused card does not build credit. Make small purchases regularly—a tank of gas, groceries, a utility payment if the merchant accepts cards—and pay the balance in full each month to show responsible use.
Can I get my deposit back before the card converts to unsecured?
You can close the account and recover your deposit at any time, but doing so stops the credit-building process. If you close the account with a balance, you will need to pay that balance first. If you close it in good standing with no balance, the deposit is typically returned within a few weeks.