If you have a secured credit card, you may be looking for ways to upgrade to an unsecured credit card. A secured credit card requires a cash collateral deposit, which is held as security in case the cardholder doesn’t make their payments. An unsecured credit card, on the other hand, doesn’t require a deposit and is based on the cardholder’s creditworthiness. Upgrading from a secured credit card to an unsecured credit card can be a good way to improve your credit score and access more credit options, but it’s important to follow the right steps to ensure a smooth transition.

 

 

Follow these steps to upgrade from secured to an unsecured credit card:

1. First, check with your credit card issuer to see if they offer an unsecured credit card option. Some issuers may allow you to upgrade your secured credit card to an unsecured credit card after a certain period of time, while others may not offer this option. It’s important to find out what your issuer’s policy is before proceeding with the application process. You can usually find this information by contacting the issuer directly or by visiting their website.
2. If your issuer does offer an unsecured credit card option, you’ll need to apply for the card and be approved. This will typically require a credit check, so be sure to check your credit score and credit report to see if there are any errors or issues that need to be addressed. If you have a good credit score and a strong credit history, you may be more likely to be approved for an unsecured credit card. However, even if you have less-than-perfect credit, you may still be able to get approved if you have a solid plan for improving your credit and a good reason for needing the unsecured card.
3. If you’re approved for the unsecured credit card, you’ll need to close your secured credit card account and transfer any remaining balance to the new unsecured card. You’ll also need to pay any fees or charges associated with closing the secured card and opening the unsecured card. To close the account, you’ll need to contact your issuer and request that the account is closed. You’ll also need to pay any fees or charges associated with closing the account, as well as any balance that may be remaining on the card.
4. Once you’ve closed your secured credit card and opened the unsecured credit card, be sure to use the new card responsibly by making on-time payments and keeping your balances low. This will help you build a strong credit history and improve your credit score, which will make it easier to qualify for additional credit in the future.

 

Bottom line:

To upgrade from a secured credit card to an unsecured credit card, you’ll need to check with your issuer to see if they offer this option, apply for the unsecured card and be approved, close your secured credit card account and transfer any remaining balance to the new unsecured card, and pay any fees or charges associated with the process. To improve your chances of being approved, be sure to check your credit score and credit report for errors and make sure you have a strong credit history by making on-time payments and keeping your balances low.