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:

Take control of your credit

Explore our Platinum Secured and Quicksilver Secured cards for building credit.

What is a security deposit for a 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.

How do secured credit card deposits work?

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.

How do I raise the limit on my secured credit card?

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.

Do I get my credit card deposit back?

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.

Secured credit cards from Capital One

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:

An illustration of the Capital One Platinum Secured card and the Capital One Quicksilver Secured Rewards card, along with each card’s deposit requirements.

Capital One Platinum Secured

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.

Capital One Quicksilver Secured

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.