Yes, Chase offers secured credit cards, and they work differently than regular cards
Chase offers the Chase Secured Visa, a secured credit card designed for people building or rebuilding their credit history. With a secured card, you put down a cash deposit that becomes your credit limit — so if you deposit $500, you get a $500 limit. You then use the card like a regular credit card, making purchases and monthly payments. The deposit stays in a separate account and is not touched unless you stop paying your bill.
The main reason to get a secured card is to build a credit history or improve a damaged one. When you use the card responsibly — making on-time payments and keeping your balance low — Chase reports your activity to the three credit bureaus (Equifax, Experian, and TransUnion). After a period of good behavior, usually 6 to 18 months, you may be able to graduate to a regular unsecured card, and Chase will return your deposit.
Key Takeaways
- Chase Secured Visa requires a cash deposit between $500 and $25,000 that becomes your credit limit.
- You use the card like a regular credit card, and Chase reports your payments to all three credit bureaus to help build your credit score.
- The card charges an annual fee (currently $39) and a variable interest rate that depends on your creditworthiness.
- After demonstrating responsible use, you may graduate to an unsecured card within 6 to 18 months, and Chase will return your deposit.
How the deposit and credit limit work
Your deposit is held in a separate savings account at Chase and serves as collateral. It is not your monthly payment — you still need to pay your bill each month from your regular bank account or income. The deposit simply sits there as security for Chase, in case you stop paying.
You choose your deposit amount when you open the account, and it can range from $500 to $25,000. Your credit limit equals your deposit, so a $1,000 deposit gives you a $1,000 limit. If you want to increase your limit later, you can add more to your deposit, and Chase will raise your limit accordingly.
If you close the account in good standing or graduate to a regular card, Chase returns your full deposit to you. If you default on the card — meaning you stop making payments — Chase may use your deposit to cover what you owe before returning any remainder.
Fees and interest rates on Chase Secured Visa
The Chase Secured Visa charges a $39 annual fee, which is deducted from your account once per year. This is a fixed cost regardless of how much you use the card. Some secured cards charge no annual fee, so this is worth comparing if you are shopping around.
The interest rate (called the APR, or annual percentage rate) is variable, meaning it changes over time based on market conditions and your creditworthiness. Chase does not publish a single rate for this card — your rate depends on your credit profile at the time you open the account. Expect a higher rate than you would get on a regular Chase card, since secured cards carry more risk for the bank.
If you carry a balance (meaning you do not pay off your full statement each month), you will be charged interest on that balance. The best way to build credit and avoid interest charges is to pay your full balance every month.
Who should consider the Chase Secured Visa
This card makes sense if you have no credit history, a very low credit score, or a recent negative event like a bankruptcy or missed payments. It is also useful if you have been denied for regular credit cards and need a way to start rebuilding.
The card is less useful if you already have fair or good credit — you would likely may have access to for a regular card with better terms and no deposit requirement. You can check your credit score for free through many banks and credit card companies before applying, which will give you a sense of where you stand.
Keep in mind that opening any credit card involves a hard inquiry into your credit report, which can temporarily lower your score by a few points. This is normal and temporary, but it is worth knowing before you apply.
How to move from secured to unsecured
Chase does not automatically graduate you to a regular card — you need to demonstrate responsible use first. This typically means making all your payments on time, keeping your balance well below your limit (ideally under 30 percent of your limit), and holding the card for at least 6 months, though 12 to 18 months is more common.
After you have built a track record, you can contact Chase and ask about graduating to an unsecured card. Chase may offer you an upgrade on their own, or you may need to request it. When you graduate, your deposit is returned to you, usually within a few business days.
Some people use a secured card for 12 to 24 months, then close it and apply for a regular card with a different bank. This is a valid strategy if Chase does not offer you an upgrade or if you want to shop for better terms elsewhere.
Comparing Chase Secured Visa to other secured cards
Chase is not the only bank offering secured cards. Capital One, Discover, and other banks also have secured card programs. The main differences to compare are the annual fee, the interest rate, the minimum deposit, and whether the card reports to all three credit bureaus.
Some secured cards charge no annual fee, which saves you $39 per year. Some have lower minimum deposits, which is helpful if you do not have $500 available right now. Some offer cash back rewards, though this is rare on secured cards. The most important factor is that the card reports to all three bureaus — if it does not, it will not help your credit score as much.
Chase Secured Visa reports to all three bureaus and has a reasonable $500 minimum, but the $39 annual fee and variable interest rate are worth weighing against competitors. If you already have a Chase checking or savings account, applying through Chase may be simpler, but that alone should not drive your decision.
What happens to your deposit if you miss a payment
If you miss a payment, Chase will charge you a late fee (typically $25 to $35 for the first late payment, more for subsequent ones) and report the late payment to the credit bureaus. This will damage your credit score, which defeats the purpose of getting the card in the first place.
If you continue to miss payments and your account goes into default, Chase may use your deposit to cover what you owe. For example, if you owe $800 and your deposit is $1,000, Chase would take $800 from your deposit and return $200 to you. You would still owe any remaining balance beyond your deposit.
The best protection is to set up automatic payments from your bank account for at least the minimum payment each month. This ensures you never miss a due date, even if you forget.
Frequently Asked Questions
Can I use my deposit as my monthly payment?
No. Your deposit stays in a separate account and is not touched for regular payments. You must pay your bill each month from your regular income or bank account, just like with any credit card. The deposit is only used if you default on the card.
How long does it take to get approved for Chase Secured Visa?
Chase typically makes a decision within a few minutes to a few hours of your online application. If approved, your card usually arrives within 7 to 10 business days. Your deposit can be transferred from an existing Chase account or sent separately.
Will getting a secured card hurt my credit score?
Opening the card will trigger a hard inquiry, which may lower your score by a few points temporarily. However, the card will then help your score by adding to your credit history and showing on-time payments. The long-term benefit outweighs the short-term dip.
What credit score do I need to get approved?
Chase does not publish a minimum credit score for the Secured Visa. People with no credit history, low scores, or recent negative marks have been approved. Your approval depends on your full application, not just your score.
Can I increase my credit limit without adding more to my deposit?
Not automatically. To increase your limit, you need to increase your deposit. For example, if you want to go from a $500 limit to $1,000, you would add $500 to your deposit account. Some banks offer unsecured limit increases after you graduate, but Chase Secured Visa requires a matching deposit.