John S Kiernan, Managing Editor
@John
People with bad credit can usually graduate from a secured card to a decent unsecured credit card after 12 to 18 months. But it depends on what you do in the meantime, not to mention how badly damaged your credit is. Making on-time payments every month you have a secured card will help speed things up, as will using only a portion of your credit limit.
When the time comes, the switch from a secured card to an unsecured credit card usually happens in one of three ways.
Here’s how to go from a secured to unsecured credit card:
- Get a better card, then close your account: The secured card’s issuer will refund your deposit, minus any unpaid balance, when you close your account.
- Accept a credit-limit increase: If the bank that issued your secured card reviews your account and likes what it sees, it might offer you a higher credit limit. This would convert your secured credit card to a partially unsecured card. But everything else would stay the same. And you wouldn’t get your deposit back at this time.
- Ask for a refund: Your existing account stays open in this scenario, but it becomes fully unsecured because you get your deposit back. It will be returned via check or statement credit.
- Graduate to an unsecured card: The issuer sometimes reviews your account activity and if you paid your bills on time and your credit has improved since you got approved, they may consider to graduate you to an unsecured credit card after some time, usually between 6 to 18 months of activity.
You can monitor your credit-building progress for free on WalletHub. When your credit score reaches “fair” territory, you’ll know you’re ready for an upgrade, if you haven’t been offered one already.
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Benjamin Lozo, Member
@lozo_benjamin
It really depends on your card. Opensky, for example, doesn't have anything as far as "graduation" goes, even though it's a great card.
The best way to move out of the secured status is to just work on your credit. There's no point in hoping they'll bump you for a better one. Get your score up, and apply for something better, something you can choose.
People also ask
Can I get my USAA Secured credit card converted to unsecured?
No, you cannot have your USAA® Secured American Express® Card converted to an unsecured credit card. However, once you use this card to raise your credit score, you can then go on to apply for one of USAA's unsecured cards. To build your credit score, try to keep your credit utilization ratio low and make your monthly payments on time.
It’s worth noting, though, that there are several other secured credit cards which can graduate to unsecured.
Notable Secured Credit...
read full answer by Joseph Bulebush, WalletHub AnalystWhat are the best secured cards that graduate to unsecured?
The best secured card that graduates to unsecured is the Bank of America® Travel Rewards Secured Credit Card. Bank of America periodically reviews accounts for possible graduation, and it reports to all 3 major credit bureaus to help you build credit history. You also get 1.5 points per $1 spent with this card, helping you save money.
Best Secured Cards That Graduate to Unsecured
When your secured card graduates to an unsecured card, your credit line no longer needs to be secured with...
read full answer by Archie Conway, WalletHub Financial AnalystDoes the Capital One Platinum Secured card graduate to unsecured?
The Capital One Platinum Secured (see details, rates & fees) card can graduate to unsecured if you pay the bill on time and otherwise manage your account responsibly. Capital One will periodically review your account for possible graduation, and you will be notified by email if you're eligible.
How to increase your chances of graduating with the Capital One Platinum Secured (see details, rates & fees) Card:
- Make on-time payments. This is probably the most important part of the process. If you don’t pay your Capital One Platinum Secured (see details, rates & fees) bills...
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