Some of the best secured cards that graduate to unsecured are Discover it Secured, Navy Federal nRewards Secured, and First National Bank of Omaha Secured. They all review accounts for possible graduation starting less than 12 months after account opening. If you pay your bill on time every month, keep your credit utilization low, and are generally on good financial behavior overall, you could graduate from secured to unsecured.
When your secured card “graduates” to an unsecured card, your credit line no longer needs to be secured with collateral. So when you graduate, the initial deposit you made to open the secured card will be refunded. You may get to keep the same physical credit card, or you may be migrated to another one. Either way, you’ll keep the good credit history you’ve earned with your secured card.
Best secured cards that graduate to unsecured:
Discover it Secured. 8 months
Citi Secured Mastercard. 12-18 months
Capital One Secured Mastercard. No set timeframe
Navy Federal nRewards Secured. 6 months
BankAmericard Secured. No set timeframe
First National Bank of Omaha Secured Visa. 11 months
Harley-Davidson Secured. 12 months
Secured credit cards are a great idea for people with damaged or no credit, because they report to at least one major credit bureau every month. If you pay your credit card bill on time, good information will be sent to the bureaus about your account. This will build your credit over time. Secured cards require a refundable deposit, which becomes your credit limit in most cases. Even if the account doesn’t graduate to an unsecured account, you can get your deposit back by closing the secured account.