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A secured credit card — which uses a deposit as collateral to secure your credit line — can help improve your credit score, whether you’re rebuilding your credit or starting your credit history from scratch. However, these cards tend to have lower credit limits, which means keeping your credit utilization ratio at a healthy level can prove challenging.
However, there are some higher-limit secured credit cards that can allow for more wiggle room with your purchasing power. Here are some of the better options.
Comparing the best cards for a high credit limit
| Card name | Credit limit | APR | Annual fee |
|---|---|---|---|
| U.S. Bank Secured Visa Card | Up to $5,000 | 29.24% (variable) | None |
| OpenSky® Secured Visa® Credit Card | $3,000 | 25.64% (variable) | $35 |
| Discover it® Secured Credit Card | Up to $2,500 | 27.74% Variable APR | $0 |
| Citi® Secured Mastercard® | $2,500 | 27.74% (Variable) | $0 |
Top cards for a high credit limit
Here are a few strong options for a secured card with a high credit limit.
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We like the U.S. Bank Secured Visa Card* because there’s no annual fee, and you can choose your credit limit and payment due date. And importantly, your credit limit can be between $300 and $5,000 — a solid perk for potential cardholders who have enough funds to secure a higher limit.
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Pros
- Your deposit is held in an FDIC-insured account and is fully refundable.
- After at least a year of responsible use, U.S. Bank offers an easy path to upgrade to an unsecured version of the card.
Cons
- There are no rewards or a welcome bonus offered with this card.
- The APR is relatively high, which can become costly if you ever carry a balance.
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The OpenSky® Secured Visa® Credit Card offers a regular APR of 22.39 percent, whereas other cards on this list charge APRs between 25.49 and 26.99 percent. Further, the OpenSky Secured Visa offers a credit limit of up to $3,000, provided you are willing to depart with a larger amount of money, and there’s no credit check required in the application process.
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Pros
- You could be eligible for the OpenSky Gold Unsecured Card after as few as six months.
- Your activity is reported to all three major credit bureaus.
Cons
- This card has an annual fee, which is absent from other high limit credit card options.
- There are no noteworthy perks or benefits offered with this card.
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In addition to offering the opportunity to build credit with a secured card for no annual fee, the Discover it® Secured Credit Card also offers cash back rewards, which is generally rare on a secured card. With this card, you’ll get 2 percent at gas stations and restaurants on up to $1,000 in combined purchases each quarter (then 1 percent), and 1 percent back on all other purchases.
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Pros
- As a welcome bonus, Discover will automatically match all the cash back you’ve earned at the end of your first year.
- After seven months, Discover automatically reviews your account to see if you qualify for an upgrade to an unsecured version of the card.
Cons
- The APR is much higher than the average, which can lead to big interest charges if you ever carry a balance.
- The minimal security deposit is $200, which is on the costly side compared to some other cards that offer a lower minimum amount.
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The Citi® Secured Mastercard® doesn’t have much in the way of bells and whistles, but it made the list thanks to the higher credit limit you can get with this account. You can open your card with as little as $200 or as much as $2,500. And after 18 months of on-time payments, you are eligible to upgrade to an unsecured Citi credit card and get your deposit back.
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Pros
- With no annual fee, it offers the opportunity to build or rebuild credit at a lower entry cost.
- You can upgrade to an unsecured Citi credit card with responsible use.
Cons
- It has a relatively high variable APR compared to other credit cards, which can make carrying a balance costly.
- There are no rewards or benefits that make this card competitive.
How to choose a high-limit secured credit card
Here are some useful features to look for when choosing a secured credit card.
Opportunities to increase your credit limit or upgrade your card
Some issuers will automatically review your credit account and increase your credit limit after enough time and positive use. It’s not something you have to initiate but is instead built into your credit issuers’ process for credit limit increases.
Even if there’s no automatic review, you can inquire if there’s a way to get an increased credit limit. Some issuers may also offer an upgrade path to an unsecured version of the secured credit card you have.
Low fees
Some secured credit cards can come with a bevy of fees that include annual fees, foreign transaction fees, late fees or even higher interest rates. Ideally, you’ll choose a card with minimal fees to help you save money on this credit-building strategy.
Credit building
Not all secured credit cards report your activity to the credit bureaus. Before getting a secured credit card, ensure that the issuer will report your activity to the credit reporting agencies.
Rewards
Though not extremely common in the secured credit card space, there are some secured credit cards that offer cash back and other perks, such as a welcome bonus. They won’t be as appealing as the benefits that come with standard rewards credit cards, but they can provide an incentive to use your credit card even while you are repairing your credit score.
Is a high-limit secured credit card worth it?
If your credit score isn’t good enough for a traditional credit card, these secured cards could get you on the right track to a better credit score. We don’t recommend that you go this route if you can’t make your payments on time and as agreed, as making late payments or missing payments could damage your credit even more.
If you carry a balance on a secured credit card, not only will you pay interest, but you may also increase your credit utilization ratio. Credit utilization is an important factor in maintaining a good credit score, so if you can’t maintain a low balance or pay it off every month, it could hinder your progress.
You should also consider whether you can deposit a larger amount to obtain a higher credit limit. If you’re fine with putting down $1,000 or more for a secured card, it could be beneficial to your credit-building journey. If you aren’t in a financial position to part with a large amount of money, then you should consider waiting until your financial situation improves.
Frequently asked questions
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A high limit secured credit card is a secured credit card that requires a security deposit to be put down as collateral, but may offer a higher credit limit compared to typical secured credit cards.
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Yes. The required collateral reduces the risk for the issuer and can lead to more favorable terms compared to unsecured credit cards for people with bad credit.
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To increase your credit limit on a high limit secured credit card, you may need to either add to your security deposit or make timely payments and demonstrate responsible use of the card over a period of time. Some issuers may offer automatic credit limit increases after a certain period of responsible use.
The bottom line
Though secured credit cards can be a great credit-building tool, their notoriously-low credit limits can make it difficult to keep your credit utilization ratio low. A higher-limit secured credit card mitigates this problem and makes it easier to comfortably build your credit score. However, make sure that your secured credit card has other desirable features aside from just a higher credit limit, like lower fees, rewards and automatic account reviews.
It can also help to compare your choices to other cards on our list of the best secured credit cards, in case other features catch your eye and prove more valuable.
*The information about the U.S. Bank Secured Visa Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
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