A secured credit card helps those who may not qualify for a traditional credit card get access to credit they can use to shop, pay bills, and even travel. Unlike a standard credit card, where the issuer loans money as a credit line that must be paid back, a secured credit card requires a cash deposit upfront. This deposit guarantees the credit line. The bigger the deposit you place, the higher the credit line you receive. If you fail to repay the card issuer, the issuer can use your deposit to make good on the account.
However, since secured cards are often used as credit-building tools, the limits can be low. It can leave consumers needing a card limit that is higher than what’s typically offered.
So, how can someone get access to more than a few hundred dollars at a time? While you’ll need extra cash for a bigger deposit, you’ll also need a more flexible card. We share how to find popular secured cards with higher limits and ways to build credit once you get one.
How secured credit card limits work
To get a secured card, you’ll have to pay a cash deposit upfront that is equal to the credit limit. For example, a card with a $250 credit limit will require a $250 deposit. (Some cards require an application fee, too.)
Secured card limits are much smaller than what a traditional card may offer, with traditional cards offering $2,000 credit limits or even more.
However, this doesn’t mean your secured card credit limit will always be low. You can sometimes add more money to get a higher limit. Some cards may also raise your limit amount after seeing you use the card responsibly for many months or even years. (A card limit higher than a deposit means the card issuer is trusting you with their money, not yours, and this privilege is reserved for consumers making active progress in building their credit history.)
Other secured cards may transfer you to a traditional credit card account over time. So, you may start with a $250 secured card but get offered a $2,000 traditional card after months of on-time payments and smart card use.
Best secured credit cards with high limits
Looking for a secured card upgrade? These options not only raise your credit limit over time, but they may also come with a path toward landing a traditional credit account.
Capital One Platinum Secured Credit Card
The Capital One Platinum Secured card comes with a starting limit of $49, $99, or $200, depending on how much you want to deposit. While the card doesn’t earn rewards, it also doesn’t have an annual fee or activation fee. Capital One will review your account for a possible credit limit increase after just six months. It also gives you a chance to upgrade to an unsecured Capital One Platinum card and get your deposit back.
Capital One Quicksilver Secured Cash Rewards Credit Card
If you’re looking for a secured card that also pays cash back, the Quicksilver Secured card may be for you. It has a $200 minimum deposit, which is much higher than some other cards. However, you can start earning 1.5% cash back on purchases made with the card and pay no interest if you pay off your balance in full each month. It also offers higher limit reviews after just six months and a way to transition to an unsecured card with a satisfactory payment history and improved credit.
Discover it Secured Credit Card
This choice of popular credit builder cards has an initial deposit range from $200 to $2,500, making it ideal for those expensive purchasing needs. The Discover it Secured Card will review your account after seven months of use to see if you may qualify for an unsecured version. It has no annual fee and reward perks like 2% back at gas stations, 2% at restaurants, and 1% back on everything else. At the end of your first year, Discover will double all your cashback earned from the previous 12 months.
OpenSky Secured Visa Credit Card
OpenSky has a higher upper limit for its secured card, with deposits ranging from $200 to $3,000. It has a $35 annual fee but no additional fees beyond that. If you pay your card down each month, you won’t pay interest, and you’ll be considered for an unsecured OpenSky card in as little as six months after opening the account (with no additional credit check needed). The card also mentions rewards of up to 10% cashback.
OpenSky Plus Secured Visa Credit Card
Another OpenSky option is the Plus Secured Visa card, which also has a deposit limit of up to $3,000 (and a higher minimum of $300). It has no annual fee and uses the same partner-based reward program as the other OpenSky card on this list. It also allows you to graduate to an unsecured card after six months or more of responsible use.
How to increase your secured card credit limit
There are a few strategies you can use to get a higher limit. Use all of them to increase your chances of gaining access to more funds.
Read the terms
First, not all cards increase your limit after the initial deposit, so focus on the right ones. If a card agreement says you’ll be eligible for a limit raise, find out how it happens. Do you request it? Does it happen automatically? Will you need a bigger deposit? Understand how it works so you can take appropriate action.
Start with a higher deposit (and limit)
The easiest way to get a higher limit is to try for one at the beginning. The card issuer will tell you how much of a limit you’ll qualify for before you apply, and this usually doesn’t affect your credit score. Compare limits between cards to find the highest one for your needs, and then apply for that one alone.
Boost your credit score
What behaviors do secured card companies consider responsible? While the factors used to raise credit limits vary by issuer, these actions can all raise your credit score:
- Paying bills on time. Payment history makes up 35% of your credit score. Avoid late payments, collections, and charge-offs to let card issuers know you can be trusted with larger credit lines.
- Keeping debt low. The amounts you owe on debts and loans can affect up to 30% of your credit score. Pay down your credit card bills and loan balances promptly to show lenders that you aren’t living on debt and can handle more credit.
- Don’t close accounts. Even if you aren’t using a credit card or loan, it can pay to keep the account open. The length of your credit history makes up 15% of your credit score, so the older your accounts are, the higher your score could be.
- Don’t open new accounts. When you apply for credit, the lender will do a hard credit check, which can temporarily cause your score to drop. Avoid signing up for new cards or credit lines while you’re building your credit so you can keep your score as high as possible.
Each of these factors can increase your credit score, which could cause a secured card issuer to raise your limit. However, not all cards raise limits automatically, and some don’t raise them at all without you putting down more money for a deposit. Read the card terms carefully to understand the possibilities.
Monitor your credit and accounts
Your credit is better managed when you know what’s going on. By checking your annual credit report for free from each of the three credit bureaus and watching your credit score at least monthly, you can get an idea of how actions affect your score. You can also be on alert for fraud, identity theft, or incorrect information on your report, all of which can hurt your credit if left unresolved.
Make a plan to watch your credit and contact the credit bureaus if something seems concerning. Each one has its own reporting process with a timeline for how long it will take to fix problems.
Making the most of your high-limit secured card
Once you get to a higher credit limit, you have a chance to continue improving your credit. Use the card like you would any credit card, paying down the balance to zero each and every month. To avoid late payments, set up automatic payments with the card company to have the money transferred from your account each month. You’ll never have to worry about forgetting, and the on-time payments will help protect your credit score.
Eventually, you may also get access to an unsecured card with low or no annual fees. This can be an even more flexible way to enjoy credit. Whatever your credit goals are, responsible card use and an eye on your credit score will help get you there.
