Can I Increase My Credit Limit on a Secured Credit Card?

Designed for people with poor credit or thin credit files, secured credit cards can be useful tools for building a credit history or repairing your credit. But the credit limit on a secured credit card is typically a few hundred dollars, which doesn't give you much purchasing power. If your secured card's credit limit isn't enough for your needs, you may be able to ask for a higher limit. Here's how a secured credit card limit is set and how to request an increase.
What Is a Secured Credit Card?
Secured credit cards are "secured" by a refundable deposit you make when you apply for the card. Your credit limit is generally equal to the amount of your deposit. The card issuer can use your deposit to pay your balance if you stop paying your bill. Because the deposit reduces the card issuer's risk, secured credit cards are usually easier to get than unsecured credit cards, so they can be a good fit for people with poor or no credit.
Using a secured credit card for small purchases and paying your bills on time may help you improve your credit score if the lender reports your account to credit bureaus. Once you've established a track record of on-time payments, some card issuers will convert your secured card to a regular credit card.
How Secured Credit Cards Work
Here's how to get and use a secured credit card.
- Compare secured credit card offers. Consider the card's security deposit requirements, any rewards such as cash back, fees and the annual percentage rate (APR)