What the First Savings Credit Card Is

The First Savings Credit Card is a secured credit card issued by Pathward, N.A. (formerly MetaBank). You deposit cash as collateral, and that deposit becomes your credit limit — typically between $300 and $2,500. The card reports to all three major credit bureaus, so on-time payments build your credit history from the ground up.

This is a real credit card, not a prepaid card. You receive a bill each month, make a payment, and carry a balance if you choose. The difference from an unsecured card is that Pathward holds your deposit as security against default. If you stop paying, they can use the deposit to cover what you owe.

The card is designed for people rebuilding credit after missed payments, collections, or no credit history at all. It is not a quick fix — it is a tool that works over months and years of consistent on-time payments.

Key Takeaways

  • You must deposit $300 to $2,500 in cash upfront; this deposit is held as collateral and does not count toward your credit limit.
  • The card charges an annual fee of $35 and a monthly maintenance fee of $7.50, which adds up to $125 per year in fees alone.
  • Interest rates run 18.9% APR or higher, so carrying a balance is expensive; the card works best if you pay in full each month.
  • After 18 months of on-time payments, you may be offered a path to convert to an unsecured card, though conversion is not may provide.
  • Your deposit stays frozen while the account is open; you only recover it after closing the card or converting to unsecured status.

Deposit, Fees, and Interest Rate

The deposit you make is held in a savings account at Pathward and earns no interest. You choose the amount between $300 and $2,500, and that amount becomes your credit limit. The deposit is not money you spend — it is collateral. You will not see it again until you close the account or the card converts to unsecured.

Annual fees total $125: a $35 annual fee charged once per year, plus a $7.50 monthly maintenance fee. These fees are charged whether you use the card or not. If you carry a balance, you also pay interest at 18.9% APR or higher, depending on creditworthiness at the time of approval. The combination of high interest and monthly fees makes this card expensive to carry a balance on.

The card offers no rewards, cash back, or sign-up bonuses. You are paying for the privilege of building credit, not for spending benefits.

How Your Payment History Affects Your Credit Score

The First Savings card reports to Equifax, Experian, and TransUnion each month. Every on-time payment adds to your payment history, which makes up 35% of your credit score. After 6 to 12 months of consistent on-time payments, you should see your score begin to move upward, assuming you have no other negative marks on your report.

The card also reports your credit utilization — how much of your limit you are using. If your limit is $500 and you carry a $250 balance, your utilization is 50%. Credit scoring models favor utilization below 30%, so keeping your balance low relative to your limit helps your score more than paying it off entirely each month (though paying in full avoids interest charges).

Late payments, even by a few days, are reported to the bureaus and damage your score significantly. Missing a payment by 30 days or more can set back your progress by months. The card's purpose is to prove you can pay on time consistently, so a single missed payment undermines that proof.

When Conversion to Unsecured Status Happens

Pathward does not publish a fixed timeline for conversion. The company reviews accounts after 18 months of on-time payments and may offer to convert your card to an unsecured Visa. Conversion is not automatic and is not may provide — the decision depends on your payment history, current credit score, and account activity.

If you are offered conversion, your deposit is returned to you, usually within 5 to 7 business days. Your credit limit may stay the same, increase, or decrease depending on your creditworthiness at the time of conversion. Some cardholders report being offered conversion with a higher limit; others see no change.

If you are not offered conversion after 18 months, you can request a review. Pathward may ask you to wait longer or to demonstrate additional positive credit behavior. There is no important date by which conversion must happen.

Comparing First Savings to Other Secured Cards

The First Savings card is one of several secured options available to people rebuilding credit. The Discover it Secured card charges no annual fee and offers 2% cash back on purchases, making it significantly cheaper to use if you may have access to. The Capital One Secured Mastercard charges a $39 annual fee but offers no monthly maintenance fee, totaling $39 per year instead of $125.

The trade-off is approval standards. First Savings is known for approving people with lower credit scores or thinner credit files than Discover or Capital One require. If you have been denied elsewhere, First Savings may be your realistic option. If you can may have access to for Discover or Capital One, those cards cost less to maintain.

All three cards report to the major bureaus and offer a path to unsecured status after consistent on-time payments. The choice depends on whether you can meet the approval standards of the cheaper alternatives.

How to Use the Card Without Overspending

The card works best as a tool, not as spending money. Charge a small recurring bill to it — a streaming service, a phone bill, or a utility — and set up automatic payments to pay the full balance each month. This approach builds your payment history without requiring you to manage a balance or pay interest.

Avoid carrying a balance unless you have a specific reason to do so. At 18.9% APR, a $500 balance costs you roughly $7.50 per month in interest alone, on top of the $7.50 monthly maintenance fee. Over a year, that is $180 in interest plus $90 in maintenance fees — nearly 54% of your original balance in fees and interest.

If you do need to carry a balance, keep it well below 30% of your limit. A $500 limit with a $150 balance is manageable; a $500 limit with a $400 balance signals financial stress to credit scoring models and costs you heavily in interest.

Closing the Account or Downgrading

You can close the account at any time by contacting Pathward. Your deposit is returned within 5 to 7 business days. Closing the account does not hurt your credit score directly, but it does remove an active account from your credit history, which can cause a small temporary dip in your score.

If you have built your credit to the point where you may have access to for an unsecured card with better terms, closing the First Savings card makes sense. Keep the account open for at least 18 months to maximize the benefit of your payment history before closing.

Pathward does not offer a downgrade path to a non-secured card while keeping the account open. Conversion to unsecured status is the only way to move away from the deposit requirement and monthly fees.

Frequently Asked Questions

What happens to my deposit if I miss a payment?

Your deposit is held as collateral but is not automatically used to cover a missed payment. If you default on the card, Pathward can explore your deposit to the debt owed. However, a single late payment does not trigger this — the deposit is protection for Pathward if you stop paying entirely.

Can I increase my credit limit without adding more money?

Pathward does not offer unsecured credit limit increases on the First Savings card. Your limit is locked to your deposit amount. To raise your limit, you must deposit additional funds, up to the $2,500 maximum.

How long does it take to see my credit score improve?

Most people see movement within 6 to 12 months of on-time payments, though the exact timeline depends on your starting score and what else is on your credit report. If you have recent collections or charge-offs, improvement takes longer than if you straightforward have no credit history.

What if I want my deposit back before 18 months?

You can close the account and recover your deposit at any time, but doing so removes the card from your active credit history. Closing early means you lose the benefit of months of on-time payments that could have continued building your score.

Does the First Savings card have a grace period for purchases?

Yes. Pathward offers a grace period on purchases, meaning you can pay your balance in full by the due date without paying interest. This grace period does not explore to cash advances or balance transfers, which accrue interest when ready.