How to Convert a Secured Credit Card to Unsecured

Secured credit card issuers generally require cardholders to make a cash deposit to a savings account that serves as collateral if cardholders don't pay off the charges on their cards. The amount of the deposit usually establishes a cardholder's credit limit as well. Secured credit card users rarely have say in converting their secured accounts to unsecured accounts. The card issuers make such decisions based on the cardholder's account activity.

Instructions

1

Pay your secured card bill on time each month. This may result in your card issuer automatically converting your account to an unsecured account within a year or less. Keep in mind that such conversions occur at the discretion of the card issuer, and the timetable and standards for conversion vary among secured card companies. Boost your chances for getting an unsecured credit account by not exceeding your credit limit and not maxing out your credit line.

2

Ask your card issuer to convert your secured card to unsecured after you have kept your account in good standing for at least six months. The card issuer may comply. Bear in mind that a secured card issuer might raise your credit limit without requiring an additional deposit, but that's not the same as converting your account to unsecured status. Don't expect to get your original deposit back in such cases. It remains with the card issuer as security for the account.

3

Try to get an unsecured credit card account with the same company that opened your secured account. If you're successful, cancel your secured card. Apply for an unsecured credit card with another company if your secured card issuer won't give you an unsecured card after you have kept your secured account in good standing for a year or more.