The Taz Credit Card is a secured card designed for people rebuilding credit
The Taz Credit Card is a secured credit card, which means you put down a cash deposit that becomes your credit limit. If you have limited credit history, a low credit score, or are recovering from past credit problems, a secured card lets you borrow and build a payment record that credit bureaus will report. The deposit stays in a separate account — it is not the same as a monthly payment.
Taz is issued by a bank and reports your activity to all three major credit bureaus (Equifax, Experian, and TransUnion). That reporting is what makes the card useful for rebuilding: every on-time payment and every balance you carry gets recorded and shapes your credit score over time. The card itself is not free — there are annual fees and interest charges if you carry a balance — so understanding those costs before you open an account matters.
Key Takeaways
- A secured card requires a cash deposit that becomes your credit limit, and the deposit stays frozen while you use the card.
- Taz reports to all three credit bureaus, so on-time payments and responsible use build your credit history and score.
- The card charges an annual fee and a high interest rate on balances you carry, so paying your full statement balance each month saves money.
- After 6 to 18 months of on-time payments, many cardholders can request to move to an unsecured card and recover their deposit.
How the deposit and credit limit work
When you open a Taz account, you choose a deposit amount — typically between $200 and $2,500, though the exact range depends on the bank's current terms. That deposit is held in a savings account and becomes your credit limit. If you deposit $500, your credit limit is $500. You cannot spend the deposit itself; it sits untouched while you use the card to make purchases.
The deposit protects the bank if you stop paying. It is not a fee, and you do not lose it by using the card responsibly. If you close the account in good standing or graduate to an unsecured card, the bank returns your deposit to you. If you default on the card, the bank may use the deposit to cover what you owe before closing your account.
Annual fees and interest rates on the Taz card
Taz charges an annual fee, which varies depending on the specific product and current terms — you will see the exact amount in the card's terms and conditions before you open the account. This fee is charged once per year, usually on your account anniversary, and is separate from any interest you pay on a balance.
The card also carries an interest rate (called the Annual Percentage Rate, or APR) that applies if you carry a balance from month to month. Secured cards typically have higher APRs than unsecured cards because they are designed for people with weaker credit. The APR on a Taz card will be disclosed in the terms before you explore. If you pay your full statement balance by the due date each month, you pay no interest — only the annual fee.
Building credit with on-time payments
The main reason to use a secured card is to build a credit history. Every month, Taz reports your account status to Equifax, Experian, and TransUnion. When you make a payment on time, that gets reported. When you keep your balance low relative to your limit, that gets reported. Over time, these positive reports raise your credit score.
The most important action is paying on time, every time. A single late payment can damage your score and may trigger a higher APR on your card. Set up automatic payments for at least the minimum due, or better yet, pay the full balance each month. After 6 to 18 months of consistent on-time payments, your credit score will likely improve enough that you can move to an unsecured card — one that does not require a deposit.
When you might graduate to an unsecured card
Banks that issue secured cards often allow you to graduate to an unsecured card after you demonstrate responsible use. The timeline varies — some banks offer this after 6 months, others after 18 months or longer. When you graduate, your deposit is returned to you, and your credit limit may increase. You will no longer need to maintain a frozen deposit.
To be considered for graduation, you typically need a record of on-time payments, a low balance relative to your limit, and no late or missed payments during the holding period. You do not have to wait for the bank to offer — you can ask after 6 months of good payment history. Some banks will review your request; others will automatically review your account at regular intervals.
Comparing Taz to other secured cards
Several banks offer secured credit cards, and they differ in deposit requirements, annual fees, APRs, and the timeline to graduation. Before opening a Taz account, it is worth looking at what other issuers offer. Some secured cards have lower annual fees, some have lower APRs, and some have faster paths to graduation. The right card depends on your deposit amount, how long you plan to hold it, and whether you expect to carry a balance.
The most important comparison is not the fee or rate in isolation, but the total cost of using the card for your situation. If you plan to pay your full balance every month, the APR does not matter — only the annual fee. If you expect to carry a balance, the APR becomes the larger cost. If you have a small deposit amount, a card with a lower minimum deposit requirement may be more accessible.
How to use a secured card without overspending
A secured card has a low credit limit by design — your limit is your deposit. This can actually be an advantage if you are trying to control spending. You cannot charge more than your deposit amount, so you cannot accidentally run up a large balance. However, this also means the card is not useful for large purchases or emergencies.
The best approach is to use your secured card for small, regular purchases — groceries, gas, a subscription — and pay the full balance each month. This builds your payment history without costing you interest. Avoid maxing out your card, because a high balance relative to your limit can lower your credit score, even if you pay on time. Aim to keep your balance below 30 percent of your limit.
Frequently Asked Questions
Can I use my deposit as a payment if I run short on money?
No. Your deposit is held separately and cannot be used to make a payment. You must pay your bill from your regular income or bank account. If you cannot make a payment, contact the bank when ready — missing a payment will damage your credit score and may trigger late fees.
What happens to my credit score if I close the card after graduating?
Closing a card can lower your score slightly because it reduces your total available credit and may shorten your average account age. However, if you have built other credit accounts in the meantime, the impact is usually small. Keep the card open if you can, even after graduating to an unsecured card.
Is there a way to get a higher credit limit without increasing my deposit?
Some banks allow you to request a credit limit increase after several months of on-time payments, without requiring an additional deposit. This varies by issuer and your credit history. Contact the bank to ask whether this option is available on your account.
Can I use a secured card if I have no credit history at all?
Yes. Secured cards are designed for people with limited or no credit history. You do not need an existing credit score to open an account — only the ability to make a deposit and pay your bills on time. This is one of the main reasons people use secured cards.
What if I miss a payment on my Taz card?
A missed payment will be reported to the credit bureaus and will lower your credit score. You may also face a late fee. If you miss a payment, contact the bank as soon as possible to bring your account current. The sooner you pay, the less damage to your score.