Upgrading from a secured to an unsecured credit card

When used responsibly, secured credit cards can be great tools for establishing and building credit. And after you’ve worked on your credit over time, you may be eligible to upgrade from a secured credit card to a traditional, unsecured credit card. This process is sometimes referred to as unsecuring. 

Learn more about upgrading from a secured credit card to an unsecured card.

What you’ll learn:

• Secured cards require a security deposit to open the account. When you upgrade to an unsecured card, you’ll typically get that security deposit back. 

• Upgrading from a secured to an unsecured credit card is sometimes referred to as unsecuring or graduating.

• Unsecuring doesn’t mean your card becomes less secure or safe. It simply means you’ve upgraded to an unsecured credit card that doesn’t require a security deposit.

• Each credit card issuer has its own policies and requirements for unsecuring. But consistently using your secured credit card responsibly is always important.

With responsible use over time, you may become eligible to upgrade your secured card to an unsecured card with the same issuer. This process is sometimes referred to as unsecuring, upgrading or graduating. 

The main difference between secured and unsecured cards is the security deposit. Unsecured credit cards don’t require a deposit to open the account. 

A secured credit card is a type of credit card that requires a security deposit to open the account. The terms and amount you pay as a security deposit can vary. With some secured cards, the credit limit will be equal to the security deposit amount. Capital One has secured cards with credit limits that are higher than the security deposit.

With the Capital One Platinum Secured card, for example, an initial security deposit of $49, $99 or $200 can open an account with a credit line of at least $200, depending on your credit history. And you can raise the credit limit by depositing more than the minimum amount required.

Rewards may also be limited with secured cards, but not in all cases. The Capital One Quicksilver Secured card offers cardholders 1.5% cash back on every purchase. With the Quicksilver Secured card, you make a $200 minimum deposit to open an account with an initial credit line of at least $200.

There isn’t one set of guidelines on how to upgrade from a secured card to an unsecured card. Each issuer has its own policies, timelines and requirements for changing to an unsecured card. 

However, there are a few rules of thumb that can help guide you on your journey toward upgrading your secured card.

Using credit responsibly is a key part of financial health. And if you want to upgrade to an unsecured card, it’s important to show the issuer that you know how to manage credit.

Using your card responsibly can also help you build credit. Here are a few tips to keep in mind, according to the Consumer Financial Protection Bureau (CFPB):

• Always pay on time. Payment history is a major factor in calculating credit scores. Setting up automatic payments is an easy way to help you avoid late payments—and the fees and penalties that may come with them. 

• Pay more than the minimum. The CFPB says to pay as much toward your balance as possible. And when you can, paying off your entire balance can help improve your credit scores. Plus, paying off your entire balance can help you avoid interest charges.  

• Only apply for credit you need. Applying for new credit triggers a hard inquiry. Too many hard inquiries may hurt your credit.

Regularly monitoring your credit is another important part of using credit responsibly. It can help you track your progress and spot any credit reporting errors that may be impacting your scores. 

CreditWise from Capital One lets you access your free credit report and credit score anytime. CreditWise is free and available to anyone, even if you’re not a Capital One cardholder. And using it won’t hurt your scores. 

You can also get free copies of your credit reports from AnnualCreditReport.com.

Each issuer has its own policies and requirements for upgrading a secured card to an unsecured card. Some issuers may automatically upgrade your secured card once you become eligible. Others may not. Look into how your issuer handles secured card upgrades, and get in touch if you have any questions.

By doing things like paying on time and paying off your entire balance each month, you may be able to switch to an unsecured card. If this happens, Capital One will send you a notification that your card has been upgraded to an unsecured credit card.

When you’re upgraded to a Capital One unsecured credit card, your security deposit is returned to you as a statement credit that’s automatically applied to any balance on your card. Or Capital One may refund your deposit if you pay your balance in full and close the account. 

You can check that your deposit has been returned by signing in to your account or looking for it on your next credit card statement.

Find out more about secured and unsecured credit cards with these frequently asked questions.

Using a secured credit card responsibly can help put you on a path toward upgrading to an unsecured credit card. 

Explore Capital One secured credit cards to see if one is right for you. You can also see if you’re pre-approved before you apply. Pre-approval is quick, and it won’t hurt your credit scores.