What are secured credit card deposits and how do they work? 

When used responsibly, a secured credit card could be just the tool you need to build credit. But once you’re approved, there are a few steps to take before you can start using your card. 

One is putting down the security deposit. Find out how secured credit card deposits work, how to fund your Capital One secured card and how to earn your security deposit back. 

What you’ll learn: 

• Secured credit cards require a one-time refundable security deposit to open an account. 
• Once you’re approved for a Capital One secured credit card, you have 35 days to make the minimum deposit. 
• You can submit your deposit for a Capital One secured card all at once or in increments of at least $20. 
• Capital One allows you to deposit more than the minimum to unlock a higher credit line, up to a certain amount, on your secured card. 
• With responsible use, you may be able to earn your security deposit back and upgrade to an unsecured credit card.

To open a secured credit card, you need to put down a one-time, refundable security deposit. The deposit acts as collateral. The issuer holds your deposit while you use your card, similar to a landlord holding the security deposit for an apartment. 

If you use your card responsibly, you can earn your deposit back and upgrade to an unsecured card. You can also get your deposit back when you close your account and pay off your balance in full, as long as your account is in good standing. 

Credit card issuers have their own policies that determine how secured card deposits work. For Capital One secured cards, you have 35 days from approval to make the minimum deposit. 

You can submit your deposit all at once or over time in increments of at least $20. If you make at least the minimum deposit within the 35-day window, you can activate your Capital One secured card and start using it. 

Capital One lets you raise your credit limit by increasing your deposit. For example, if the minimum deposit is $200 and you decide to deposit $300 instead, your credit line will be $300.  

Capital One also has secured cards with credit limits higher than the initial deposit. Depending on your credit history, Capital One may extend a $200 credit line with a $49 or $99 deposit. 

Remember, you have to make at least the minimum deposit before the 35-day funding window closes to unlock your credit line and get your card. 

Deposit refunds are another thing that depends on your credit card issuer’s policies. 

There are two ways to get your security deposit back at Capital One: 

1. By establishing a positive track record, you can earn your deposit back as a statement credit and upgrade to an unsecured card.
2. If your account is in good standing, you can get your deposit back when you close your account and pay off your balance in full.

No matter where you are in your credit journey, Capital One has tools to help you get where you want to go. Unlike some other issuers, Capital One reports secured card accounts to all three credit bureaus. This means that with responsible use, a Capital One secured card may help you build credit and improve your credit scores. 

Capital One has two different secured credit cards: 

Depending on your credit history, an initial security deposit of $49, $99 or $200 can open a Platinum Secured card account with a credit line of $200. With no annual fees or hidden fees, you can focus on building your credit with responsible card use, and not on extra charges. View important rates and disclosures.

And if you’re approved, the card offers resources and support to help you on your credit-building journey.

The Quicksilver Secured card functions a lot like the Platinum Secured card with one major difference: It comes with cash back rewards. With a $200 deposit and no annual fees or hidden fees, you can open a credit line of $200 and earn 1.5% cash back on every purchase. View important rates and disclosures. You can then redeem your rewards for cash, gift cards or to cover recent purchases. 

Secured cards can be great tools for building and rebuilding credit. To open a secured credit card, you have to put down a one-time refundable security deposit. 

Capital One lets you make that deposit all at once or in increments of at least $20. Just keep in mind that you have to fund at least the minimum deposit within 35 days of being approved for the card. And you can increase your credit line by depositing more than the minimum.

Compare Capital One secured credit cards to see if one is right for you, and check for pre-approved card offers before you apply. Getting pre-approved is quick and won’t hurt your credit scores. 

New to credit or looking for your next credit card?:

• Check for pre-approval offers with no risk to your credit score.
• Earn unlimited 1.5% cash back on every purchase, every day with Quicksilver.
• Explore Capital One’s credit cards for building credit with responsible use.