Credit 101

What’s a Secured Credit Card and How Can It Help Me Build Credit?

Is this the year you jump on the credit card bandwagon? Or maybe you already jumped on the bandwagon and didn’t have such a great ride? Sure, a credit card might sometimes sound like a magic wand that can help you pay bills or make purchases today and pay for it all tomorrow, but getting approved for one isn’t always a guarantee. And even after getting approved, maintaining the monthly payments without accruing interest or fees might be a new expense you haven’t had the experience budgeting for yet. That’s where a secured credit card can come in. It might just be the perfect fit/tool for you to begin to build or repair your credit.

What is a secured credit card?

A secured credit card is a card where you set your own credit limit by making a cash security deposit when you open the account. It can be a great starter-card as you gain experience with the best ways to use a credit card and learn how to continually make your payments back on time. Opening a line of credit with a traditional credit card, or “unsecured” credit card, can sometimes be harder if you don’t have any credit yet, or have not-so-great credit. A secured credit card, on the other hand, can be easier to open and keeps the stakes lower and slower for your credit building journey.

How does a secured credit card work?

You apply to a secured credit card like you would for most traditional credit cards. If this is your first time applying to a credit card, that’s ok, it’s very quick and easy. A few questions are asked about your income and expenses, and the whole application process takes less than a minute. To open a GO2bank Secured Visa^® Credit Card¹, you need to receive direct deposits totaling at least $100 within a 30-day range. After you apply and get approved, you can activate your card and set your credit limit by making your security deposit. Credit limits start at only $100 with the GO2bank Secured Visa^® Credit Card. After you deposit at least $100 from your GO2bank account to make your security deposit and set your credit limit, you can now use your secured credit card online, in your favorite stores, and wherever Visa^® is accepted.

After you make purchases and receive your monthly bill, you can use your GO2bank account to make your credit card payments each month. There’s even an auto-pay option that you can set-up to make sure you never miss a payment. Always remember, your security deposit isn’t used to make your credit card payment each month. If you ever don’t make your payment on time, the late payment and any accrued interest will be taken from your security deposit. If that does happen, your credit limit will decrease by that same amount. If you ever close your secured credit card account, that security deposit comes right back to you.

How does a secured credit card help me build my credit?

A secured credit card is kind of like having training wheels while you gain confidence and speed on your credit journey. Start by using your secured credit card to make smaller purchases every month, preferably keeping your monthly balance low and under 50% of your credit limit. Then make your credit card payments on time every month, or even before they’re due, if you’re able to. Your secured credit card issuer will then report your payment history to 1 or all 3 of the credit bureaus. The credit bureaus will then accumulate your credit history month after month of responsible use, and you’ll start seeing your credit build. The longer your account is open and the longer you keep responsibly using your card, the longer your credit history is, and the more you’ll see your credit score grow.

Why choose the GO2bank Secured Visa^® Credit Card?

Maybe you have zero credit. Maybe your credit journey got off to a bad start and now you have not-so-good credit. Either way, the GO2bank Secured Visa^® Credit Card is right for you. Why? So glad you asked…

No credit checks

Never had a credit card before? No problem. Had a bad experience with a credit card before? No problem. If you’re a GO2bank account holder with direct deposits totaling at least $100 in the past 30 days, you can be approved for a secured credit card. Zero credit checks required.

No annual fee²

How are you supposed to build your credit if a credit card issuer keeps making you pay an annual fee for you to have a credit card in the first place? No shade on other secured credit card issuers, but that just seems kind of…mean? We’re not mean. We want you to feel confident, stay positive, and keep building that credit, with no annual fees.

Credit limit starting at only $100

Compared to other issuers, our security deposit is super low and very affordable. We did that so more people with poor or fair credit can have an easier time getting started with our secured credit card.

Monthly credit bureau reporting

Each month, we report your secured credit card payments to not 1, not 2, but all 3 credit bureaus. That means your payment history and credit report is more comprehensive, giving you a more accurate credit score.

Experian Credit Care Advantage™

GO2bank accountholders have unique access to the first-of-its-kind Experian Credit Care Advantage^™, where you can raise your FICO^® Score instantly for free with Experian Boost^™3, gain free access to your Experian credit report and FICO^® Score⁴, keep your identity safe with Dark Web Surveillance, and control who can access your credit file with Experian CreditLock. All because you made us your GO2.

Building credit doesn’t have to be scary. And there’s no shame in keeping the training wheels on with a secured credit card, especially if those training wheels help you buy a bigger, better bike with all that good credit later on down the road. To learn more about applying for the GO2bank Secured Visa^® Credit Card, visit here.

The views and opinions expressed here may not represent the views and opinions of GO2bank, Green Dot Corporation, or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal, or business advice.

The GO2bank Blog may contain hyperlinks to sites that are not operated by GO2bank. The GO2bank Privacy Policy does not apply to the linked sites, and you should consult the Privacy Policies on those sites for further information. GO2bank does not provide and is not responsible for the product, service or overall content on those sites.

¹Available only to GO2bank accountholders with direct deposits totaling at least $100 in the past 30 days. Eligibility criteria applies. Other fees apply.

²Annual Percentage Rate is 22.99% and is accurate as of 7/31/2022. For additional information about Annual Percentage Rates, fees and other costs, see the GO2bank Secured Credit Cardholder Agreement and Security Agreement (PDF).

³Average users who received a boost improved their FICO^® Score 8 based on Experian Data by 12 points. Some may not see improved scores or approval odds. Not all lenders use credit information impacted by Experian Boost^™.

⁴Credit Score is calculated based on FICO^® Score 8 model, unless otherwise noted. In addition to the FICO^® Score 8, we may offer and provide other base or industry-specific FICO Scores (Such as FICO^® Auto Scored and FICO^® Bankcard Scores). Your lender or insurer may use a different FICO^® Score than FICO^® Score 8 or such other base or industry-specific FICO^® Score (if available), or another type of credit score altogether.

* When on a desktop, hover over * to view important disclosures. When on a mobile device, click on * to view disclosures.

The views and opinions expressed here may not represent the views and opinions of Green Dot Corporation or its affiliates. It is presented for general informational purposes only and does not constitute tax, legal or business advice.

The GO2bank Blog may contain hyperlinks to sites that are not operated by Green Dot. The Green Dot Privacy Policy does not apply to the linked sites, and you should consult the Privacy Policies on those sites for further information. Green Dot does not provide and is not responsible for the product, service or overall content on those sites.

Online access, mobile number verification (via text message) and identity verification (including SSN) are required to open and use your account. Mobile number verification, email address verification and mobile app are required to access all features. See GO2bank Deposit Account Agreement (PDF) and GO2bank Secured Credit Cardholder Agreement and Security Agreement (PDF) for fees, terms and conditions.

Cards issued by GO2bank, Member FDIC, pursuant to a license from Visa U.S.A., Inc. Visa is a registered trademark of Visa International Service Association.

GO2bank is Green Dot's flagship mobile bank account. Green Dot has serviced more than 80 million accounts over the last 24 years.

GO2bank also operates under the following registered trade names: Green Dot Bank, GoBank and Bonneville Bank. All of these registered trade names are used by, and refer to, a single FDIC-insured bank, Green Dot Bank. Deposits under any of these trade names are deposits with Green Dot Bank and are aggregated for deposit insurance coverage up to the allowable limits.

All third-party names and logos are trademarks of their respective owners. These owners are not affiliated with GO2bank and have not sponsored or endorsed GO2bank products or services.

Neither GO2bank, Green Dot Corporation, Visa U.S.A. nor any of their respective affiliates are responsible for the products or services provided by Ingo Money, Q2 Software, Plaid, Atomic or any eGift Card merchants. Partner terms and conditions apply.

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What’s a Secured Credit Card and How Can It Help Me Build Credit?