Yes, a secured credit card will increase your limit under certain conditions. For instance, you can add funds to your security deposit to raise your credit limit, subject to approval from the issuer. Plus, with some cards, if you make several consecutive timely payments, the issuer may increase your limit without an additional deposit.
With a secured credit card, your credit limit is determined by the amount of your security deposit. As these cards are designed for people with bad or limited credit, the deposit also serves as collateral. If you close your account, the deposit will be refunded to you, minus any unpaid balance or fees owed.
How to Increase Your Secured Credit Card Limit
- Increase the amount of your security deposit: You can add funds through your online account or by contacting the issuer’s customer service line. When you call, you will need to provide your personal information to verify the account. Please note that this is subject to prior issuer approval and there is a cap on your credit limit that varies among credit cards. Some of the highest limit secured credit cards, such as the U.S. Bank Cash+® Visa® Secured Card, allow security deposits of up to $5,000.
- Automatic credit limit increases: Some issuers will consider you for a credit limit increase without an additional deposit after you make your first several payments on time. The Capital One Platinum Secured Credit Card is a good example. However, you have no control over how much and when your credit limit will be increased, if at all.
Some secured credit cards may be eligible for graduation to an unsecured credit card. If your account has been in good standing for more than 12 months, contact your issuer and see if you are eligible for graduation. If approved, you will receive a refund on your security deposit. You may also be eligible for automatic credit limit increases or request them yourself if you’ve used your card responsibly.
This answer was last updated on 05/06/24 and it was first published on 10/14/22. For the most current information about a financial product, you should always check and confirm accuracy with the offering financial institution. Editorial and user-generated content is not provided, reviewed or endorsed by any company.
