Funding your secured credit card

Secured credit cards are one of the best ways to build credit if you’ve had trouble being approved for an unsecured card. Secured cards are almost indistinguishable from unsecured credit cards, except for one major difference: A secured card requires a deposit.

How to fund a secured credit card

Once you are approved for a secured card, you need to fund your security deposit before you can use your card. Most secured cards expect you to choose your deposit, though some do have minimums and maximums. Funding your deposit can be done in a handful of ways:

Funding your card by mail

Many lenders allow you to fund your new card by sending a check or money order by mail. Generally, you’ll complete a security funds to be mailed with the deposit check. You can find the address and any other necessary information on the credit card website or by following the instructions in the package you received from the issuer.

Funding your card by phone

Most new credit cards have a sticker on the front or back of the card with a number to call to activate the card. If the issuer uses an automated system, follow the prompts to fund your deposit and activate the card. If you’d like to speak to a representative, they can walk you through the process.

Funding your card online

Many secured credit cards offer an online system to manage your account, often with the option to pay your deposit. Once you’ve receive your card, follow the instructions to set up your online account. Once your account is set up, navigate to the section dedicated to deposits, then fill out and submit all required information.

How long do I have to fund my secured credit card?

When you apply for a secured credit card, you’ll be required to provide a deposit when you apply or shortly afterwards. Most issuers require a payment once you’re approved. However, there are a few cards that are a bit more lenient, like the OpenSky® Secured Visa® Credit Card that gives you 60 days to pay your deposit, and the Capital One® Secured Mastercard® that gives 80 days.

How much is a security deposit?

Secured credit cards allow you to choose a deposit amount that’s right for your financial situation. Chose a manageable amount that won’t break your budget. Remember that the goal is to build your credit score.

Credit limits vary from card to card, so make sure you know what’s available as you compare cards. Here’s how to find the minimum and maximum deposit amounts on a secured credit card:

1. The majority of secured credit cards have an official website, either standalone or through its issuer. Navigate to the website and look for a product details or card features section. Take the Green Dot primor® Mastercard® Gold Secured Credit Card, for example:

2. Most of the time, the minimum and maximum deposit amounts will be listed in plain sight, but if not, you might have to do some digging.
3. If you can’t find the information, look for a link to the terms and conditions or full cardholder agreement. This document should have details regarding deposit, fees and APR.

4. If you’re still having trouble finding the minimum and maximum deposit, you can always contact the issuer for more details. The customer service number can usually be found on the contact page of the website.

What happens if I don’t fund my secured card in time?

If you don’t fund your secured card in time, your approved application may be voided. It’s best to have a plan of how you’ll pay the deposit before filling out the application.

Credit card companies do a hard pull on your credit, causing your score to drop a few points. The initial dip in credit isn’t a big deal once you start using the card, but it can be if the card is rejected before you use it. The deadline for your deposit varies between each issuer, so it’s important to be aware to avoid further damaging your credit.

Compare secured credit cards with low minimum deposits

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Name	Product	Annual fee	Purchase APR	Minimum credit limit	Maximum credit limit
Citi® Secured Mastercard®		$0	22.49% variable	$200	$2,500	A no annual fee secured card for people who are new to credit or have limited credit history.	Apply now View details	Compare	loading Fetching your data...
Self Visa® Credit Card		$25	21.74% variable	$100		Build your credit with a low minimum security deposit of $100 and no credit score required.	Apply now View details	Compare	loading Fetching your data...
OpenSky® Secured Visa® Credit Card		$35	17.39% variable	$200	$3,000	Apply for this card with no credit check if you're new to credit or have bad credit.	Apply now View details	Compare	loading Fetching your data...

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Bottom line

Having to put down a security deposit can sting a little. However, a secured card can ultimately help you lay the groundwork toward a positive credit history.

Compare the best secured credit cards to find one that’s right for you.

Frequently asked questions

• Why is a security deposit required for a secured card?

  Your provider can take your security deposit if you fail to make payments. With this extra assurance, the provider may feel more comfortable approving you as a customer.

• What will my credit limit be for my secured card?

  Typically, the amount you deposit will be your credit limit.

• Will I get my security deposit back?

  You’ll get your security deposit back after you close your card. Some providers may even return your deposit and still let you use your card, essentially giving you an unsecured card.