What is the difference between a secured credit card and an unsecured credit card?

A secured credit card requires a refundable cash deposit that typically sets your credit limit, while an unsecured credit card offers a limit based on your creditworthiness without any upfront deposit.

Which is better for building credit, a secured or unsecured credit card?

A secured credit card is often better for building credit because its approval criteria are more lenient for those with poor or no credit history, yet both report to credit bureaus equally.

Is a secured credit card safer than an unsecured credit card?

Yes, a secured credit card is safer for the lender because your deposit covers the balance if you default, but your personal financial risk remains identical if you overspend.

Why does a secured credit card require a deposit but an unsecured card does not?

A secured credit card requires a deposit to guarantee payment for borrowers with limited or damaged credit, whereas an unsecured card relies on your proven credit score and income history.

Can you use a secured credit card anywhere that accepts unsecured credit cards?

Yes, you can use a secured credit card anywhere the card network, such as Visa or Mastercard, is accepted, because the deposit does not restrict merchant usability.

What is a common mistake people make when switching from a secured to an unsecured credit card?

A common mistake is closing the secured card immediately after approval for an unsecured card, which can shorten your credit history and temporarily lower your credit score.

Is a secured credit card a good first credit card for a student?

Yes, a secured credit card is a good first card for a student because it guarantees approval with a small deposit and teaches responsible spending without the risk of high unsecured debt.

Can you convert a secured credit card into an unsecured credit card later?

Yes, many issuers allow you to convert a secured card into an unsecured card after several months of on-time payments, at which point they refund your deposit and raise your limit.

Which type of credit card has higher fees, secured or unsecured?

Secured credit cards typically have higher fees, including annual fees and application fees, because they serve higher-risk borrowers, while unsecured cards often offer no annual fee for good credit.

How long does it take to upgrade from a secured credit card to an unsecured credit card?

It typically takes six to twelve months of consistent on-time payments to upgrade from a secured card to an unsecured card, depending on your issuer's review policy.

Difference Between

Difference Between Secured Credit Card and Unsecured Credit Card

Written byNex Virox Team

Editorial Team

Reviewed byVarshal Nirbhavane

Senior SEO & Organic Growth Professional · 5+ years

Published: August 27, 202620 min read

Quick answer

The main difference between Secured Credit Card and Unsecured Credit Card is that a secured card requires a cash security deposit that sets your credit limit, while an unsecured card requires no deposit. Secured Credit Card is a credit-building tool backed by a refundable deposit, while Unsecured Credit Card is standard credit approved on creditworthiness alone.

Key takeaways

Core distinction: Secured cards require a cash deposit as collateral; unsecured cards rely solely on creditworthiness.
How each works: Secured card deposit usually equals your credit limit; unsecured card limit depends on income and credit score.
Cost and effort: Secured cards often charge lower fees but require upfront cash; unsecured cards demand a higher credit score.
Best-fit use case: Secured cards build credit from scratch or repair poor history; unsecured cards reward established good credit profiles.
Common decision mistake: Choosing an unsecured card with high fees when a secured card would rebuild credit faster.

Table of Contents18 sections

Difference Between Secured Credit Card and Unsecured Credit Card: Comparison Table

Aspect	Secured Credit Card	Unsecured Credit Card
Definition	Requires a cash security deposit that typically sets the credit limit.	Extends credit based on creditworthiness without requiring any upfront deposit.
Purpose	Builds or rebuilds credit history when scores are low or absent.	Serves everyday spending and rewards for consumers with established credit.
Core Mechanism	Deposit acts as collateral, usually equal to the full credit limit.	Lender assumes unsecured risk based on your credit report and income.
Deposit Required	Requires an upfront refundable deposit, often $200 to $2,000.	Requires zero deposit; approval depends solely on financial profile.
Credit Limit	Limit typically matches the deposit amount you provide upfront.	Limit is set by issuer, often ranging from $500 to $25,000 or more.
Approval Criteria	Approval relies mainly on deposit; credit score plays a minor role.	Approval depends heavily on credit score, income, and debt ratios.
Credit Score Needed	Accepts poor, thin, or no credit history, often scores below 580.	Typically requires fair to excellent credit, usually scores above 670.
Interest Rate	APRs often run higher, commonly 20% to 30% or more.	APRs vary widely, from 15% to 28% depending on credit tier.
Annual Fee	Often charges annual fees ranging from $0 to $99 per year.	Many no-annual-fee options exist for prime and super-prime borrowers.
Rewards Program	Rarely offers cash back or points; focus remains on credit building.	Frequently provides cash back, travel points, or miles on purchases.
Credit Reporting	Reports monthly payments to all three major credit bureaus.	Reports monthly activity to Equifax, Experian, and TransUnion consistently.
Upgrade Path	Issuers often convert to unsecured after 6 to 18 months.	No conversion needed; you may apply for better cards over time.
Deposit Refund	Deposit returns when you close or upgrade the account successfully.	No deposit exists, so no refund process applies at any point.
Risk to Issuer	Risk is low because the deposit covers most potential losses.	Risk is higher as no collateral backs the borrowed credit amount.
Risk to User	You risk losing the deposit if you default on payments.	You risk credit damage and collections but no seized collateral.
Approval Speed	Approval can be instant, but deposit processing adds 1 to 2 days.	Approval is often instant; card arrives within 5 to 10 business days.
Credit Utilization	Low limits make it easy to accidentally exceed 30% utilization.	Higher limits allow easier maintenance of healthy utilization ratios.
Spending Flexibility	Spending is capped by your deposit amount, limiting large purchases.	Spending capacity expands with higher limits and available credit.
Foreign Transactions	Most secured cards charge 2% to 3% on international purchases.	Many travel cards waive foreign transaction fees entirely.
Fraud Protection	Offers zero-liability protection similar to standard credit cards.	Provides robust fraud monitoring and zero-liability on unauthorized charges.
Credit Building Speed	Shows positive payment history but slow limit growth hampers scores.	Higher limits and lower utilization can accelerate score improvement.
Account Age Impact	Keeps account open for years to lengthen your credit history.	Closing old accounts shortens history and can lower average age.
Hard Inquiry	Many issuers pull credit reports, though some offer pre-qualification.	Applying triggers a hard inquiry that can drop scores a few points.
Target Audience	Designed for students, first-timers, or people post-bankruptcy.	Aimed at established borrowers seeking rewards and lower rates.
Common Examples	Discover it Secured, Capital One Quicksilver Secured, and OpenSky.	Chase Freedom Unlimited, Citi Double Cash, and Amex Blue Cash.
Approval Certainty	Approval is nearly guaranteed if you meet minimum deposit requirements.	Approval is never guaranteed and depends on issuer-specific criteria.
Card Benefits	Perks are minimal, often limited to basic fraud monitoring services.	Includes extended warranties, purchase protection, and concierge services.
Debt Collection	Issuer can seize the deposit to cover unpaid balances in default.	Issuer must use collections agencies or lawsuits to recover debts.
Typical Limit Range	Limits usually stay between $200 and $5,000 based on deposit.	Limits can reach $10,000 to $50,000 for high-income applicants.
Best-Fit Scenario	Best for rebuilding credit with a small, manageable upfront deposit.	Best for maximizing rewards and flexibility with a strong credit profile.

What Is Secured Credit Card?

A secured credit card is a credit card backed by a cash deposit you pay upfront, usually equal to your credit limit. It exists to help people with no credit history or poor credit build or rebuild their credit score through regular, responsible use.

Definition of Secured Credit Card

A secured credit card is a revolving line of credit guaranteed by a refundable security deposit held by the issuer as collateral against non-payment. The deposit typically determines the credit limit, and the account activity is reported to major credit bureaus to establish a positive payment history.

Key Characteristics of Secured Credit Card

Characteristic	What It Means in Practice
Security deposit required	You pay an upfront refundable deposit that sets your spending limit.
Credit limit equals deposit	Your spending cap matches the deposit amount, often starting at $200.
Reports to credit bureaus	Payment activity is sent to Experian, Equifax, and TransUnion monthly.
Builds credit history	On-time payments create a positive record for future lenders.
Refundable collateral	You get the deposit back when you close the account in good standing.
Higher approval odds	Issuers accept applicants with low scores because risk is covered.
Possible upgrade path	Some issuers convert your account to an unsecured card later.
Interest rates often higher	APRs tend to exceed those on standard unsecured cards.
May charge fees	Annual fees, setup fees, or monthly maintenance fees can apply.
No rewards typically	Most secured cards lack cashback or points programs.

Common Examples of Secured Credit Card

Discover it Secured – offers 2% cashback on gas and restaurants with no annual fee.
Capital One Platinum Secured – requires a deposit as low as $49 for a $200 limit.
OpenSky Secured Visa – requires no credit check, making approval nearly guaranteed.
Bank of America Customized Cash Secured – earns 3% cashback on a chosen category.
Chime Credit Builder Secured – uses no credit check and has zero interest charges.
US Bank Secured Visa – offers a clear path to unsecured status after 12 months.
Wells Fargo Active Cash Secured – earns 2% flat cashback on all purchases.
Citi Secured Mastercard – provides free access to your FICO score monthly.
Credit One Bank Secured – reports to all three bureaus and accepts fair credit.
Self Secured Credit Card – pairs with a credit-builder loan for dual progress.

Advantages and Limitations of Secured Credit Card

Advantages	Limitations
Approval is possible with a poor or absent credit score.	Your deposit ties up cash that you cannot use elsewhere.
Regular on-time payments raise your credit score steadily.	Credit limits stay low, often under $1,000, limiting big purchases.
Activity is reported to all three major credit bureaus.	APRs run higher than unsecured cards, costing more on carried balances.
Deposit is fully refundable when you close the account properly.	Many issuers charge annual fees or monthly maintenance fees.
Some cards offer cashback rewards despite the secured status.	Reward rates are lower than top-tier unsecured cards.
You can graduate to an unsecured card with the same issuer.	Graduation is not guaranteed and may take 12 to 24 months.
Spending is capped, which prevents overspending and debt buildup.	High utilization is easy to hit, which can hurt your score temporarily.
No credit check is required on select secured card options.	Deposit amounts are non-refundable if you default on the account.
Useful for establishing a first credit file from scratch.	Some cards do not report to all bureaus, slowing score growth.
Issuers often provide free credit score monitoring tools.	Closing the card can drop your score if it is your oldest account.

What Is Unsecured Credit Card?

An unsecured credit card is a revolving credit line that requires no cash deposit or collateral to open. It extends a credit limit based on your creditworthiness and income. It exists so qualified borrowers can borrow money flexibly and build credit without pledging assets.

Definition of Unsecured Credit Card

An unsecured credit card is a payment card that provides a credit limit backed solely by the borrower’s promise to repay, with no security deposit or asset lien. Lenders approve it based on credit history, income, and debt levels, and they report payment activity to credit bureaus.

Key Characteristics of Unsecured Credit Card

Characteristic	What It Means in Practice
No collateral required	The lender assumes all default risk because you pledge no deposit or asset to back the balance.
Credit-based approval	Your FICO score, income, and existing debt determine whether you qualify and at what rate.
Variable interest rates	APRs typically range from 15% to 30% and adjust with the prime rate, making balances costly.
Rewards programs	Most cards offer cash back, points, or miles on purchases, which secured cards rarely match.
Higher credit limits	Approved borrowers often receive limits from $1,000 to $25,000 or more without a deposit.
No upfront deposit	You pay no security deposit at account opening, freeing up cash for other uses.
Credit reporting	Issuers report to all three major bureaus monthly, helping you build or maintain a credit history.
Grace period offered	You typically get 21 to 25 days to pay the full balance before interest accrues on purchases.
Balance transfer options	Many cards allow transferring existing debt, often with a 0% introductory APR for 12 to 18 months.
Risk-based pricing	Subprime borrowers face higher APRs and annual fees, while prime borrowers get premium terms.

Common Examples of Unsecured Credit Card

Chase Sapphire Preferred – a premium travel card offering transferable points and no foreign transaction fees.
Capital One Quicksilver – a flat-rate cash back card with 1.5% rewards and no annual fee.
Discover it Cash Back – a rotating 5% category card with cash back match in the first year.
American Express Blue Cash Everyday – a supermarket and gas rewards card with no annual fee.
Citi Double Cash – a card earning 2% total cash back, 1% on purchases and 1% on payments.
Bank of America Customized Cash – a card letting you choose a 3% category from six options.
Wells Fargo Active Cash – a flat 2% unlimited cash back card with a cell phone protection benefit.
Apple Card – a titanium card with daily cash back and no fees, integrated with Apple Wallet.
Credit One Bank Platinum – a subprime card for rebuilding credit with cash back rewards and reporting.
U.S. Bank Altitude Go – a dining-focused card earning 4x points on restaurant purchases.

Advantages and Limitations of Unsecured Credit Card

Advantages	Limitations
Builds credit history without tying up your savings in a refundable deposit.	Approval is difficult with no credit or a score below 600, limiting access.
Offers lucrative rewards like 2% cash back that secured cards rarely provide.	High APRs near 25% to 30% can trap you in expensive revolving debt.
Provides higher credit limits that improve your credit utilization ratio when used lightly.	Late payments trigger penalty APRs up to 29.99% and stay on your report for seven years.
Includes valuable perks such as purchase protection, extended warranties, and travel insurance.	Annual fees on subprime cards can reach $99, eroding the value of small credit lines.
Gives you a 21-day grace period to pay in full and avoid interest charges entirely.	Hard inquiries from applications temporarily drop your credit score by several points.
Allows balance transfers to consolidate debt at 0% APR for up to 18 months.	Balance transfer fees of 3% to 5% add immediate cost to the transferred amount.
Offers sign-up bonuses worth $200 or more when you meet minimum spending requirements.	Minimum spending requirements of $500 to $4,000 encourage overspending you cannot afford.
Provides fraud liability protection, capping your loss at $0 for unauthorized transactions.	Cash advances start accruing interest immediately at higher rates with no grace period.
Reports positive payment history monthly, which can raise your score within six months.	Maxing out the limit damages your utilization score and signals risk to other lenders.
Gives you flexible payment options, including paying the minimum or the full statement balance.	Paying only the minimum on a $3,000 balance at 22% APR takes over 20 years to clear.

Similarities Between Secured Credit Card and Unsecured Credit Card

Shared Aspect	How Secured Credit Card and Unsecured Credit Card Are Alike
Payment Network	Secured credit card and unsecured credit card both operate on Visa, Mastercard, or American Express networks.
Credit Bureau Reporting	Secured credit card and unsecured credit card both report payment activity to all three major credit bureaus.
Monthly Billing Cycle	Secured credit card and unsecured credit card both issue a monthly statement with a payment due date.
Minimum Payment Rule	Secured credit card and unsecured credit card both require a minimum payment each billing cycle.
Interest Charges	Secured credit card and unsecured credit card both charge interest on balances carried past the grace period.
Credit Limit Basis	Secured credit card and unsecured credit card both assign a spending limit that caps your purchases.
Fraud Liability Protection	Secured credit card and unsecured credit card both offer zero liability for unauthorized transactions.
Cardholder Agreement	Secured credit card and unsecured credit card both operate under a legally binding cardholder agreement.
APR Disclosure	Secured credit card and unsecured credit card both must disclose their annual percentage rate clearly.
Late Fee Policy	Secured credit card and unsecured credit card both charge late fees for missed payments.
Credit Score Impact	Secured credit card and unsecured credit card both affect your credit score based on usage and payments.
Online Account Access	Secured credit card and unsecured credit card both offer mobile apps and web portals for account management.
Autopay Feature	Secured credit card and unsecured credit card both allow automatic monthly payments from a bank account.
Cardholder Benefits	Secured credit card and unsecured credit card both may include perks like purchase protection or roadside assistance.
Contactless Payment	Secured credit card and unsecured credit card both support tap-to-pay at compatible point-of-sale terminals.
EMV Chip Technology	Secured credit card and unsecured credit card both embed an EMV chip for in-person transaction security.
Foreign Transaction Fee	Secured credit card and unsecured credit card both may charge a fee for purchases made abroad.
Credit Utilization Factor	Secured credit card and unsecured credit card both factor into your credit utilization ratio calculation.
Dispute Resolution Process	Secured credit card and unsecured credit card both allow cardholders to dispute billing errors under federal law.
Rewards Eligibility	Secured credit card and unsecured credit card both can earn cash back or points on eligible purchases.
Account Closure Procedure	Secured credit card and unsecured credit card both require you to pay the balance before closing the account.
Card Replacement Service	Secured credit card and unsecured credit card both provide replacement cards if yours is lost or stolen.
Credit Limit Increases	Secured credit card and unsecured credit card both may qualify for higher limits after responsible use.
Annual Fee Possibility	Secured credit card and unsecured credit card both may charge an annual fee depending on the issuer.
Application Credit Check	Secured credit card and unsecured credit card both require a credit check during the application process.
Regulatory Oversight	Secured credit card and unsecured credit card both fall under the Credit CARD Act of 2009 protections.
Payment Allocation Rule	Secured credit card and unsecured credit card both apply payments to highest-interest balances first by law.
Grace Period Offer	Secured credit card and unsecured credit card both typically offer a 21-25 day interest-free grace period.
Overlimit Transaction	Secured credit card and unsecured credit card both decline transactions that exceed the approved credit limit.
Long-Term Credit Building	Secured credit card and unsecured credit card both help establish a positive payment history over time.

Secured Credit Card or Unsecured Credit Card: Which Should You Choose?

Your credit score decides it. Choose a Secured Credit Card when your credit score is below 600 or you have no credit history. Choose an Unsecured Credit Card when your credit score is 670 or higher. The secured card builds credit; the unsecured card rewards existing credit.

When to Use Secured Credit Card

Choose Secured Credit Card when you have no credit history, a score under 600, or recent bankruptcies or charge-offs. Use it to rebuild after financial trauma. It requires a cash deposit, typically $200 to $2,500, which becomes your credit limit. Approval is nearly guaranteed, making it your fastest path to a FICO score.

When to Use Unsecured Credit Card

Choose Unsecured Credit Card when your score is 670 or higher, you have 12+ months of positive credit history, and you want rewards like cash back or travel points. You pay no deposit, and you access higher credit limits, typically $1,000 to $25,000. You also qualify for 0% introductory APR offers on purchases or balance transfers.

Common Misconceptions About Secured Credit Card and Unsecured Credit Card

Common Myth	The Reality
A secured credit card always reports to the credit bureaus each month.	Only some secured credit card issuers report to all three bureaus; others report to just one or two, so verify before applying.
An unsecured credit card never requires any form of upfront payment.	An unsecured credit card may still charge an annual fee or security deposit for low-credit applicants, so upfront costs are not always zero.
Your security deposit on a secured credit card is used to pay your monthly bill.	Your security deposit only sets your credit limit and is held as collateral; it never pays your purchases or interest charges.
A secured credit card is identical to a prepaid debit card.	A secured credit card builds your credit history through reporting, while a prepaid debit card never reports activity to credit bureaus.
An unsecured credit card always has a higher credit limit than a secured one.	An unsecured credit card can have a limit as low as $300, while some secured credit card issuers allow limits up to $10,000 with larger deposits.
Getting a secured credit card guarantees your credit score will improve quickly.	A secured credit card only builds credit if you pay on time and keep utilization low; missed payments will still damage your score.
An unsecured credit card is impossible to get with no credit history.	An unsecured credit card is available to some new borrowers through student cards, store cards, or credit unions with lower approval standards.
Your deposit on a secured credit card earns no interest at all.	Many secured credit card issuers pay interest on your deposit, often around 2% APY, though rates vary by bank and account type.
A secured credit card is only for people with bankruptcy on their record.	A secured credit card is also used by students, new immigrants, and anyone with thin credit files to establish a first credit history.
An unsecured credit card has no impact on your credit utilization ratio.	An unsecured credit card affects your utilization just like any revolving account; maxing it out lowers your score regardless of type.
Converting a secured credit card to an unsecured one always happens automatically.	Conversion to an unsecured credit card is not automatic; you must request it after 6-18 months of responsible use, and approval is not guaranteed.
A secured credit card charges higher interest rates than every unsecured card.	A secured credit card often has APRs around 20-28%, but some unsecured credit cards for bad credit charge 30% or more, so rates overlap.
Your secured credit card deposit is refundable only when you close the account.	Many secured credit card issuers refund your deposit upon graduation to an unsecured credit card, not just at closure, after on-time payments.
An unsecured credit card is always better than a secured credit card for building credit.	An unsecured credit card is not always better; a secured credit card with lower fees and reporting can build credit just as effectively for new users.
Using a secured credit card for small purchases and paying in full is enough.	Using a secured credit card responsibly also requires keeping utilization under 30% and avoiding late payments, not just paying the minimum.
An unsecured credit card never requires a credit check for approval.	An unsecured credit card almost always requires a hard credit inquiry, while some secured credit card issuers only perform a soft pull for prequalification.
Your secured credit card deposit is equal to your credit limit forever.	Some secured credit card issuers allow you to add funds to increase your limit, or they may raise your limit without extra deposit after good behavior.
A secured credit card cannot be used for online purchases or travel.	A secured credit card works anywhere the card network is accepted, including online stores, international merchants, and for car rentals with holds.
An unsecured credit card with a $0 annual fee is always cheaper than a secured card.	An unsecured credit card with a $0 annual fee may still charge high interest, late fees, or foreign transaction fees, making total costs higher than a secured card.
Closing your secured credit card after graduation will erase your credit history.	Closing a secured credit card removes the account from active use, but the payment history stays on your credit report for up to 10 years.
A secured credit card is a type of loan, not a revolving credit line.	A secured credit card is a revolving credit line just like an unsecured credit card; you borrow up to your limit and repay monthly, not in fixed installments.
An unsecured credit card is only approved for people with excellent credit scores.	An unsecured credit card is available to fair and average credit through subprime lenders, though those cards often carry high fees and low limits.
Your deposit on a secured credit card is held for the life of the account.	Your deposit on a secured credit card is typically returned within 30-60 days after you close the account in good standing or graduate to unsecured.
A secured credit card does not report your credit limit to the bureaus.	A secured credit card reports your credit limit and balance to the bureaus, so your utilization ratio is calculated exactly like an unsecured credit card.
An unsecured credit card always offers rewards like cash back or points.	An unsecured credit card for bad credit rarely offers rewards; most subprime unsecured cards have no rewards program and charge monthly maintenance fees.
You need a bank account to open a secured credit card.	You need a bank account for most secured credit card issuers to transfer your deposit, but some issuers accept money orders or checks from non-customers.
A secured credit card is a permanent solution for bad credit.	A secured credit card is a temporary tool; most users graduate to an unsecured credit card within 12-24 months of consistent on-time payments.
An unsecured credit card has no downside compared to a secured one.	An unsecured credit card for bad credit often has higher fees, lower approval odds, and no path to graduation, while a secured credit card offers a clear upgrade route.
Your credit score will drop when you apply for a secured credit card.	Applying for a secured credit card may cause a small temporary drop from a hard inquiry, but responsible use typically raises your score within 3-6 months.
A secured credit card and an unsecured credit card are graded differently by lenders.	Lenders see both a secured credit card and an unsecured credit card as revolving accounts; neither type is labeled as secured or unsecured on your credit report.

Conclusion

Difference Between Secured Credit Card and Unsecured Credit Card comes down to collateral: secured cards require a cash deposit that sets your limit, while unsecured cards rely on creditworthiness alone. Choose secured to build credit safely. Choose unsecured when your score qualifies for better rewards and terms.

FAQs on Difference Between Secured Credit Card and Unsecured Credit Card

What is the difference between a secured credit card and an unsecured credit card?: A secured credit card requires a refundable cash deposit that typically sets your credit limit, while an unsecured credit card offers a limit based on your creditworthiness without any upfront deposit.
Which is better for building credit, a secured or unsecured credit card?: A secured credit card is often better for building credit because its approval criteria are more lenient for those with poor or no credit history, yet both report to credit bureaus equally.
Is a secured credit card safer than an unsecured credit card?: Yes, a secured credit card is safer for the lender because your deposit covers the balance if you default, but your personal financial risk remains identical if you overspend.
Why does a secured credit card require a deposit but an unsecured card does not?: A secured credit card requires a deposit to guarantee payment for borrowers with limited or damaged credit, whereas an unsecured card relies on your proven credit score and income history.
Can you use a secured credit card anywhere that accepts unsecured credit cards?: Yes, you can use a secured credit card anywhere the card network, such as Visa or Mastercard, is accepted, because the deposit does not restrict merchant usability.
What is a common mistake people make when switching from a secured to an unsecured credit card?: A common mistake is closing the secured card immediately after approval for an unsecured card, which can shorten your credit history and temporarily lower your credit score.
Is a secured credit card a good first credit card for a student?: Yes, a secured credit card is a good first card for a student because it guarantees approval with a small deposit and teaches responsible spending without the risk of high unsecured debt.
Can you convert a secured credit card into an unsecured credit card later?: Yes, many issuers allow you to convert a secured card into an unsecured card after several months of on-time payments, at which point they refund your deposit and raise your limit.
Which type of credit card has higher fees, secured or unsecured?: Secured credit cards typically have higher fees, including annual fees and application fees, because they serve higher-risk borrowers, while unsecured cards often offer no annual fee for good credit.
How long does it take to upgrade from a secured credit card to an unsecured credit card?: It typically takes six to twelve months of consistent on-time payments to upgrade from a secured card to an unsecured card, depending on your issuer's review policy.