Getting back on track! Secured cards graduated! (2024)

FAQs

What happens when a secured card graduates? ›

With some creditors, you could potentially get approved to “graduate” to an unsecured credit card. Graduating means that you keep your card, but your security deposit is returned so that your credit card becomes an unsecured credit card.

The Discover it^® Secured Credit Card is our top pick for easiest credit card to get because it's geared toward those with limited / poor credit. It offers great rewards and charges a $0 annual fee.

You prove over time that you use credit responsibly. Your credit score improves consistently for several months in a row. Your limits are raised on your secured card by your financial institution without requiring additional deposits. You're notified by your secured card issuer that you qualify to graduate.

You typically get your secured credit card deposit back when you pay your balance and close your account or when your secured credit card converts to an unsecured card. After you demonstrate responsible use of your secured credit card over a certain period, the card issuer may offer to convert it to an unsecured card.

But even if you have the money for a deposit, you can be denied a secured card if your credit profile is deemed too risky to a lender. Each lender, or card issuer, has a set of standards as to what an ideal borrower looks like. This includes your credit score, your income and your current and former debts.

Not all card issuers follow the same guidelines when it comes to how long it takes for a secured card to become unsecured, although it typically ranges from six to 18 months. During this period, you need to use your card correctly and keep an eye on your credit score to qualify.