How Long Should I Keep a Secured Credit Card? (2026)

Getting your first credit card is exciting, but it can also be confusing, depending on the circumstances. Some people tend to open it for the first time in their 20s, while others might even start early, in college, by going for the student card or something similar for those with no credit history. Doing so could be preferable, as it would allow you to start building your credit score early on, which would lead to an easy way to get approval for the actual credit card once you are ready to start supporting it.

However, it also happens quite often that people did not get a card like that as students or young adults, and they did not start building their credit score in time. Now they have no credit score, or a poor one, which prevents them from getting a credit card as card issuers simply consider them risky. But, the world is moving on, and a credit card is becoming more and more of a necessity and less a luxury. With that being the case, your only alternative is to obtain a secure credit card.

How secured credit cards work?

Secured credit cards are similar to regular ones, but you have to provide a security deposit before you receive it, which can be high or low, depending on the issuer. You then get a line of credit, typically the same as your security deposit. The benefit of this card is that it can help you build up your credit score and unlock new benefits in a record amount of time.

They are not as good as unsecured credit cards, which have far greater credit lines, don’t need a deposit, and offer plenty of perks and rewards, but they are the second best thing, and with their help, you can switch to the full credit cards fairly quickly. Today, we wanted to discuss how long you should keep your secured credit card and how to recognize when is the time to move on from it.

How long should you keep a secured credit card?

So, assuming that you got approval for a secured credit card, what now? How long should you use it before you try upgrading to an unsecured one or applying for the unsecured card from scratch?

Well, that depends on how quickly your credit score will improve. The credit score improves over time with responsible use of the secured card, so depending on how big your credit line is, how close you come to maxing it out, whether or not you pay your dues in time, and other similar aspects, you can improve your credit score more or less quickly. Eventually, you will be able to upgrade to an unsecured card which will bring more rewards and eliminate the need for a security deposit.

The security deposit that you made for your secured card will be returned to you once you upgrade or if you decide to close your secured card. However, keep in mind that, even if you outgrow your secured card and you stop using it, keeping it open might still be beneficial.

There is a good reason to keep it open because the age of your credit accounts is an important factor for determining your credit score. The lingerie you own a secured card and use it responsibly, the more it adds to your credit history. This information, of lengthy responsible use, makes you look better in the eyes of financial institutions and credit bureaus, so they will feel that you are trustworthy enough to use their products, perks, and rewards.

With that said, if your secured card is the oldest existing credit line you have — closing it as soon as you become eligible to move on to an unsecured card might even be damaging to your credit score. Of course, it is better to close it quickly if you have to pay hefty annual fees, but if not, keeping it open a bit longer wouldn’t hurt.

How can a secured credit card affect the credit score?

Getting a credit card — any kind of credit card — requires you to submit an application which will then be reviewed by the card issuer. If you have a good credit score, meaning 670 and above, you will likely get a regular credit card without problems. However, if your credit score is 579 or lower, then you likely won’t get an unsecured card anywhere. (It should be noted there is an exception to this rule, if you prefer not to have your funds tied up you can also apply for bad credit credit cards).

This is why secured credit cards were invented — for people with low scores to be able to prove themselves as responsible users. Essentially, they have to pay a deposit that serves as collateral, and then they will be issued a secured card. If their payment behavior with the secured card is good enough, then their issuer will report it to the three major credit bureaus, which will, in turn, improve the user’s credit and show to all other financial institutions that the user can be trusted.

The longer this positive behavior continues, the better the overall credit score, and eventually, the user will be trusted by all the financial companies enough to get their products with no difficulties

Why you shouldn’t close your secured credit card right away?

Let’s say that you got a secured card, managed to improve your credit score over the course of 6-18 months, and have even managed to receive an unsecured card from your issuer. Things are progressing well, and you might decide that you do not need a secured card anymore. Closing it will mean that you get your deposit back, and you will have one less thing to worry about.

However, as mentioned earlier, this was your first line of credit, and closing it before the reports from your unsecured card start coming in might damage your credit score. However, if you upgrade from your secured credit card to an unsecured one, you will get a new deal with new perks, but your account will stay the same, which will not have a negative impact on your credit score.

It is not as beneficial as opening a new, unsecured card, but it will mean that you can switch from a secured one to the unsecured one without having to juggle two cards at the same time.

When is the right time to upgrade?

So, the final question is when to upgrade. Well, with some secured credit card issuers, the upgrade might come automatically when you become eligible to move on to this higher form of a credit card. Others might simply let you do your own thing, and with them, you will have to request the upgrade manually.

So, the best thing you can do is keep an eye out and remember to regularly check your credit score. Improving it might take anywhere from six months to two years, or even more if you happen to slip from time to time. Still, if you are primarily a responsible credit card user, you will eventually reach the point where your score will be good enough for an upgrade.

Final thoughts

Your secured card can be a powerful tool for improving your financial situation and your image in the financial world, which is why you should take it seriously and plan out a strategy for getting what you want. Once you do that, it will be time to decide which issuer to turn to, and which card to get.

We offer a list of the Best Secured Credit Cards if you are still in the process of shopping for a secured card, so make sure to check them all out, compare them, and see which one offers the best deal for you, personally.

If you currently have a secured credit card and are ready to move to to a new type of credit card also view our list of the Best Bad Credit Credit Cards, Best Student Credit Cards, or the Best Rewards Credit Cards.