Best High-Limit Secured Credit Cards Of May 2024

The best high-limit secured cards were chosen first by considering only secured cards and then only those with the highest limits. Additional factors considered include:

• Earnings rates
• Welcome bonus
• Introductory APR
• Fees
• Consumer benefits

Read more: How Forbes Advisor Rates Credit Cards

Secured credit card is a type of credit card designed for individuals looking to build or rebuild their credit history. These cards require a security deposit as collateral for the lender. Secured cards provide the opportunity to demonstrate financial responsibility to credit bureaus through regular, on-time payments. This can lead to an improved credit profile and access to unsecured credit cards, in the future.

High-limit secured cards have maximum credit limits that are higher than the average secured card. These cards require a larger security deposit and, in most cases, the amount deposited determines your credit limit. For those with enough cash savings to make the higher deposit, getting a high-limit secured card could enable them to use it for most of their regular expenses without dramatically raising their credit utilization rate.

1. Assess your credit needs. Determine why you need a high limit and how much you can afford to put down for the security deposit. Remember this amount is held until you graduate to an unsecured card or close your account in good standing.
2. Research card options. Look for banks or financial institutions that offer secured credit cards with higher credit limits. Many of the bets are included in the list above.
3. Check eligibility requirements. Ensure you meet the criteria, such as minimum age, income requirements and any specific conditions.
4. Fill out the application. Complete the application form, either online or at a bank branch, providing personal and financial details.
5. Submit the required documents. Provide necessary documents like identification, proof of income, and address verification.
6. Pay the security deposit. Once approved, pay the deposit to fund your credit limit and receive your card.

Unsecured Credit Cards for Building Credit

For those hesitant or unable to pay a large deposit, unsecured credit cards designed for building or rebuilding credit are an alternative. These cards often come with lower credit limits and can have higher interest rates, but they don’t require a security deposit. They often include features like credit monitoring and automatic reviews for credit limit increases, making them a good stepping stone for improving credit.

Credit-Builder Loans

Another alternative is a credit-builder loan, offered by many credit unions and banks. These loans work by holding the borrowed amount in a bank account while you make payments. Think of it as a savings account that builds credit. The lender reports your payment history to the credit bureaus, thereby helping you build credit. Once the loan is fully paid, you receive the total amount. This option is ideal for those looking to build credit without the immediate need for credit access.

Becoming an Authorized User on Someone Else’s Credit Card

Being added as an authorized user on a family member or friend’s credit card account is a straightforward way to build credit. Your credit score can benefit from their credit history as well as their ongoing positive credit behavior.

However, this option requires trust and responsibility, as the primary cardholder’s credit habits will directly affect your credit score. In addition, if you charge more on your authorized user card than you can repay, they will ultimately be held liable for payment.

High-limit secured credit cards are a financial tool for those seeking to establish or rebuild credit, offering higher credit limits that can aid in managing larger expenses. And by requiring a security deposit, lenders can mitigate risk and extend approval to those with less-than-ideal credit histories.

While these cards provide a pathway to better credit and potentially unsecured credit in the future, it’s crucial for cardholders to practice responsible spending and timely payments. As with any financial product, it’s important to weigh the potential risks and benefits before you apply.

¹Out of network ATM withdrawal and over the counter advance fees may apply. See here for details.
²To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.
On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Chime will report your activities to Transunion®, Experian®, and Equifax®. Impact on your credit may vary, as Credit scores are independently determined by credit bureaus based on a number of factors including the financial decisions you make with other financial services organizations.
Money added to Credit Builder will be held in a secured account as collateral for your Credit Builder Visa card, which means you can spend up to this amount on your card. This is money you can use to pay off your charges at the end of every month.

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