What the Atlas Credit Card Is and How It Works
The Atlas Credit Card is a secured credit card issued by Fortis Bank. You put down a cash deposit, and that deposit becomes your credit limit. If you deposit $500, you get a $500 credit limit. You use the card like any other credit card — swipe it, pay the bill each month — but the bank holds your deposit as collateral in case you stop paying.
The card reports your payment activity to all three credit bureaus (Equifax, Experian, and TransUnion) each month. This means every on-time payment builds your credit history, and every late payment damages it. After you've shown consistent on-time payments over time — usually 12 to 18 months — you can request that the card be converted to an unsecured card, and your deposit gets returned to you.
Atlas is designed for people rebuilding credit after missed payments, collections, or a bankruptcy. It's not a rewards card and doesn't offer cash back or points. The value is in the credit-building opportunity, not in earning benefits on your spending.
Key Takeaways
- Your cash deposit becomes your credit limit, and the bank holds it as security while you rebuild credit.
- Monthly payments are reported to all three credit bureaus, so on-time payments directly improve your credit score over time.
- The card has an annual fee (the amount varies) and a higher interest rate than cards for people with good credit, reflecting the risk the bank takes.
- After 12 to 18 months of on-time payments, you can request conversion to an unsecured card and get your deposit back.
- The card works best if you use it for small, regular purchases you can pay off in full each month.
The Deposit: How Much You Need and What Happens to It
You choose your deposit amount when you open the account. The minimum deposit varies, but typically starts at $300 to $500. You can deposit more if you want a higher credit limit — some people deposit $1,000 or $2,000 to have more room to spend and build credit faster.
The bank holds your deposit in a separate account and does not use it to pay your bills. If you make all your payments on time, the deposit sits untouched. If you stop paying and default on the card, the bank can use your deposit to cover what you owe, but they will still report the default to the credit bureaus. Your deposit is not a safety net that erases missed payments — it's collateral that protects the bank's loss, not your credit record.
When you convert the card to unsecured (or if you close the account in good standing), the bank returns your deposit to you, usually within a few weeks. The deposit itself earns no interest, so you're not building savings — you're building credit history.
Annual Fees, Interest Rates, and Other Costs
Atlas charges an annual fee to hold the account. The exact amount depends on the deposit size and current terms, so check the card's disclosure documents for the current fee. This fee is separate from interest charges and is charged once per year, usually on your account anniversary.
The card also carries an interest rate (called the APR, or annual percentage rate). Because you're rebuilding credit, this rate is higher than what people with good credit pay — often in the range of 18% to 24% or higher, depending on your credit profile and current market rates. If you carry a balance month to month, interest charges add up quickly.
The best way to avoid interest charges is to pay your full statement balance each month. If you charge $200 and pay $200 before the due date, you pay no interest. If you charge $200 and pay only $50, you owe interest on the remaining $150 for the next month, and that interest compounds.
How Payments and Credit Reporting Work
You make payments to Atlas the same way you would with any credit card — online, by phone, or by mail. The payment due date appears on your statement each month. To build credit effectively, you must pay at least the minimum payment by the due date, every single month.
Atlas reports your account status to Equifax, Experian, and TransUnion after each billing cycle. This report includes whether you paid on time, how much of your credit limit you used, and your account balance. A history of on-time payments is the single most important factor in improving your credit score — it accounts for about 35% of how scores are calculated.
Late payments are also reported and stay on your credit report for seven years. A single 30-day late payment can drop your score by 100 points or more, depending on your starting score. This is why Atlas works best for people who can commit to paying on time every month.
When and How to Convert to an Unsecured Card
After you've made on-time payments for a set period — typically 12 to 18 months, though this varies by bank — you become may be able to access to request conversion to an unsecured card. You don't have to wait for the bank to offer; you can call and ask once you've met the timeline.
When you request conversion, the bank reviews your payment history. If you've paid on time every month and haven't missed a payment, they usually approve the conversion. Your deposit is returned to your bank account, and your credit limit may stay the same or increase slightly. The card itself continues to work and report to the credit bureaus, but now you're no longer putting up collateral.
Some people choose not to convert and keep the card as a secured card indefinitely. This is fine — the card continues to build credit as long as you use it and pay on time. The decision to convert is yours, and there's no penalty for waiting longer or staying secured.
How to Use Atlas to Actually Build Credit
The card only helps your credit if you use it responsibly. Here's the approach that works: charge a small amount each month — a gas purchase, a subscription, a grocery item — and pay the full balance before the due date. This shows the credit bureaus that you can borrow and repay reliably.
Avoid maxing out the card. If your limit is $500, try to keep your balance below $150 each month. Credit bureaus look at your credit utilization ratio — the percentage of your limit you're using. Using 30% or less of your limit is better for your score than using 80% or 90%, even if you pay it off on time.
Do not close the card after you convert it to unsecured or after your credit improves. Closing it removes the account from your credit history and can actually lower your score. Keep it open and use it occasionally, even if you move to other cards with better rewards or lower rates.
Atlas Compared to Other Secured Cards
Other banks offer secured cards with similar structures — Discover, Capital One, and U.S. Bank all have secured card products. The differences usually come down to the annual fee, the interest rate, and the minimum deposit required. Some cards offer cash back on purchases (though Atlas does not), and some have lower annual fees.
Before opening an Atlas card, it's worth checking what other secured cards are available and comparing the terms. A card with a lower annual fee or lower interest rate might save you money over the 12 to 18 months you're rebuilding. However, all secured cards work the same basic way — deposit, use, pay on time, convert — so the choice often comes down to which bank's terms fit your situation best.
Frequently Asked Questions
Can I use Atlas if I have a bankruptcy on my credit report?
Yes. Secured cards like Atlas are specifically designed for people rebuilding after bankruptcy, collections, or missed payments. Your bankruptcy doesn't disqualify you. The bank's main concern is whether you can pay going forward, and the deposit gives them security while you prove you can.
What happens if I miss a payment?
A missed payment is reported to the credit bureaus and damages your score. If you're 30 days late, it shows as a late payment on your report. If you're 60 or 90 days late, the damage is worse. The bank may also charge a late fee. If you miss payments for several months, the bank can close your account and use your deposit to cover what you owe.
Can I increase my credit limit without adding more money?
Some banks allow you to request a credit limit increase after you've shown a history of on-time payments, without requiring an additional deposit. Atlas may offer this, but it depends on your account history and the bank's current policies. Call and ask after 6 to 12 months of on-time payments.
How long does it take to see my credit score improve?
Credit bureaus update your report monthly, so your first on-time payment appears within 30 to 45 days. However, credit scores don't jump after one payment. Most people see meaningful improvement — 50 to 100 points or more — after 6 to 12 months of consistent on-time payments, depending on how damaged their credit was to begin with.
What if I want to close the account before converting to unsecured?
You can close the account anytime. If you're in good standing (no missed payments), the bank returns your deposit. If you've missed payments, the bank may use your deposit to cover what you owe. Closing the account stops it from building credit, so it's usually better to keep it open and active, even after your credit improves.