It usually takes 12 to 18 months for a secured card to become an unsecured card, if used responsibly. Exactly how long it takes for a secured card to become unsecured depends on the card issuer, how the account is managed, and whether or not the card even has the capability of graduating in the first place.
Credit card graduation is when a secured card’s security deposit is returned to the cardholder and the card, in turn, becomes unsecured. Graduation to an unsecured card could occur in as little as 6 months, but it could also take several years. In addition, some secured credit cards won’t graduate no matter how long you have them or how good your account history is. You can always call the card issuer’s customer service line to see if your secured card is eligible for graduation, though.
Secured card issuers may also review your account once or twice a year to evaluate it for automatic graduation. To maximize your chances of automatic secured card graduation, pay on time each month and keep your credit utilization low. But remember: Graduation is never a guarantee.
This answer was first published on 02/12/21. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
FAQs
Our take: The U.S. Bank Secured Visa Card is a good choice for building or rebuilding credit, since it doesn't charge an annual fee. It's a secured card without any extra benefits or rewards, but there's a path to graduate to an unsecured card after 12 months.
How long does it take for a secured credit card to become unsecured US bank? ›
Our take: The U.S. Bank Secured Visa Card is a good choice for building or rebuilding credit, since it doesn't charge an annual fee. It's a secured card without any extra benefits or rewards, but there's a path to graduate to an unsecured card after 12 months.
How to turn a secured card into unsecured? ›
How to upgrade a secured credit card
- Step 1: Get in touch with your credit card issuer. One of the easiest ways to transition to an unsecured credit card is to upgrade your secured card. ...
- Step 2: Shop around. ...
- Step 3: Get your deposit back.
It takes at least 18 months for a Citi® Secured Mastercard® to become unsecured. At any point after you've had the card for 18+ months, Citi may decide you have used it responsibly enough and will return your security deposit, making the card unsecured.
What happens after 6 months of having a secured credit card? ›
Once you have a secured credit card, you can use it like any traditional credit card. Once you've established a history of good credit (which may happen in as little as 6 months of on-time payments), your card may be upgraded to an unsecured card, and your security deposit released.
How long does it take to go from a secured card to unsecured? ›
Depending on the secured credit card you get, it might be possible to transition to an unsecured card with responsible use of your card. Not all card issuers follow the same guidelines when it comes to how long it takes for a secured card to become unsecured, although it typically ranges from six to 18 months.
Why did my secured card become unsecured? ›
With responsible use over time, you may become eligible to upgrade your secured card to an unsecured card with the same issuer. This process is sometimes referred to as unsecuring, upgrading or graduating. Check with your issuer to understand your options and how unsecuring will affect your account.
How fast will a secured card rebuild credit? ›
It can take up to six months for people with no credit histories to establish their credit scores. If you have poor credit, you may notice a change in your credit score after using a secured credit card for a month or two. Make your payments on time and keep your outstanding balances low to improve your credit score.
Will a secured card raise my credit score? ›
Provided your lenders report your payment history to the three nationwide consumer reporting agencies, a secured credit card can be a powerful tool for building and improving credit. Secured credit cards may be especially helpful for high-risk borrowers or those with little to no credit history.
Does Capital One secured card turn into unsecured? ›
You have to put down a one-time security deposit to open a secured credit card account. Once you've been approved and made your deposit, you can use the card like you'd use an unsecured card. And with responsible use, you may eventually be able to upgrade to an unsecured credit card and get your security deposit back.
Cons of a Secured Credit Card
- Requires a Deposit. If you have bad credit or a limited credit history and need to establish good credit, you'll need to put up a cash deposit. ...
- Higher Interest Rates. Secured credit cards often have higher interest rates, fees, processing or annual charges. ...
- Low Credit Limit.
Ultimately, how often you use a secured credit card is less important than how much of your credit line you use and whether you pay the bill on time.
How long does it take to get upgraded from a secured credit card? ›
You can typically qualify for an upgrade after six to 12 months of responsible use, though the exact timing depends on the card issuer. Contact your credit card issuer to find out when you may become eligible to upgrade your secured card.
Does U.S. Bank upgrade a secured credit card? ›
To determine upgrade eligibility, we will consider your secured card use and payments and your credit history on loans and lines of credit you have with us or somewhere else. We'll continue to periodically review your account for the opportunity to upgrade to a traditional card in the future.
Do US bank secured cards graduate? ›
Spend within your credit limit and pay your bill when it's due. Over time, this will help build your credit and you may be able to automatically graduate to the U.S. Bank Cash+ ® Visa Signature ® Card. Upon graduation, your security deposit will be returned.
What is the credit limit on a US bank secured credit card? ›
The credit limit on your Secured credit card is the same amount as your total deposit, with a maximum of $5000. Any request to increase the credit limit may result in an inquiry to your consumer credit report.
Does U.S. Bank do a hard pull for secured credit card? ›
Does the U.S. Bank Secured card do a hard pull? Yes, the U.S. Bank Secured will do a hard pull. You can apply for it with bad credit though. There is no way to get pre-approved for the U.S. Bank Secured.
