Getting a credit card
Using your credit card
Credit card rewards
Explore credit cards
See if you're pre-approved > , Opens new tab

Getting a credit card

How Do I Switch from a Secured to an Unsecured Credit Card? contents
See if you're pre-approved > , Opens new tab
Woman in winter coat stands outside looking at mobile phone in her hand.

How Do I Switch from a Secured to an Unsecured Credit Card?

Last Updated: November 13, 2024
3 min read
Getting a credit card

Table of contents

Key Points:

  1. A secured credit card may help you build credit history and qualify for an unsecured card later.

  2. A low credit utilization (the percentage of available credit you’re using) on your secured card is key to proving your creditworthiness.

  3. With Discover, you could upgrade to an unsecured card after 6 consecutive on-time payments and maintaining good status on all your credit accounts.1

A change from a secured credit card to an unsecured credit card is a serious financial accomplishment. When you start with a secured card, it usually means you have little or no credit history, or you're working to rebuild your credit history. There are a few steps that can show responsible use of your secured credit card and help you make the switch to an unsecured card.

Use your secured credit card responsibly to graduate to an unsecured credit card

It’s important to use your secured credit card (one that requires a cash security deposit to open) responsibly. This will show you can manage using an unsecured card (one without a deposit). Use your card regularly but try to keep the amounts you charge to a small percentage of your credit limit. This is because having a lower debt utilization is considered positive when factored into your credit score. Debt utilization (or credit utilization ratio) typically accounts for 30% of your credit score.

It’s also important to pay your bills on time. Even one missed or late payment will likely negatively affect your credit score.

How long does it take to go from a secured credit card to unsecured?

Some secured credit card issuers may let you convert to an unsecured account after you’ve built credit history and displayed a pattern of paying bills on time. You’ll also get your cash deposit back at this time.

Did you know?

To build enough credit history for an unsecured card, you’ll have to use your secured card responsibly for a certain period. With Discover, we begin automatic reviews starting at 7 months to see if we can transition you to an unsecured line of credit and return your deposit.1

Learn More

If you’re unsure about your card issuer’s timeline for graduating to an unsecured card, you may want to contact them and discuss options.

How to use your new unsecured credit card to build credit history

You’ve already demonstrated creditworthiness when you qualified for your secured card. This helps to create more financial opportunities. Here are three simple tips that build on those habits that can help you graduate from a secured to an unsecured credit card:

Avoid opening multiple credit cards at once

Now that you have established credit, you might notice an uptick in the amount of pre-approved card offers you receive. It can be exciting to see pre-approved credit card offers, but keep in mind that opening several credit cards in a short time frame may cause lenders to perceive you as a risk.

Resist the temptation to jump at every credit card offer promising free cash, bonus rewards, complimentary airfare, and low interest rates. After you build your credit history and improve your credit score, you’ll qualify for a wider range of credit cards.

New accounts could lower your average account age, which could have a larger effect on your credit score.

Don’t use all your credit

To maintain good credit—and perhaps help your credit score even more—keep your overall balances as low as possible. If your credit utilization ratio is too high, your credit score may drop. To make sure you keep your credit card debt in check, set up account balance alerts and automatic payments.

Unsecured credit cards take more discipline than secured cards

Unsecured cards make it easier to spend than secured credit cards. Credit limits tend to be higher, and creditors are more likely to increase your available credit the longer you own the unsecured card and demonstrate responsible use.

It’s important to stay in control of your personal finances by using available tools (think payment reminders and account alerts) that help maintain your financial discipline once you have an unsecured credit card.

Important Information >
Inward Curve
Discover credit cards

See if you’re Pre-approved before you apply

Check Now

Next steps

Card Icon
Learn about Discover It® Secured Credit Card

See rates, rewards and other info

Learn More
Card Icon
View all Discover credit cards

See rates, rewards and other info

Learn More

You may also be interested in

Share article

Was this article helpful?

Glad you found this useful. Could you let us know what you found helpful?
Sorry this article didn't help you. Can you give us feedback why?

Was this article helpful?

Thank you for your feedback

Apply Now

  1. Getting your deposit back: Monthly reviews start your seventh month as a customer. We will refund your security deposit if you have made all payments on time for the last six consecutive billing cycles on all your Discover accounts including any loans, and you've remained in "good status" on all credit accounts you are responsible for whether they are Discover accounts or not. "Good status" means: (1) your credit report shows no delinquencies, charge-offs, repossessions, or bankruptcies for the six months prior to our review; and (2) your Discover secured card is not in a prohibited status at the time of our review, including, but not limited to: closed, revoked, suspended, subject to tax levy, garnishment, deceased, lost/stolen, or fraud. Monthly reviews may be delayed if you change your payment due date. We typically process your refund in 2-3 business days based on your delivery preference. If you close your account and pay in full, we'll return your deposit within two billing cycles plus ten days.

  • Legal Disclaimer: This site is for educational purposes and is not a substitute for professional advice. The material on this site is not intended to provide legal, investment, or financial advice and does not indicate the availability of any Discover product or service. It does not guarantee that Discover offers or endorses a product or service. For specific advice about your unique circumstances, you may wish to consult a qualified professional.