What Stax Does and Who It's For

Stax is a secured credit card issued by Stride Bank that reports to all three credit bureaus — Equifax, Experian, and TransUnion. You put down a cash deposit, which becomes your credit limit, and use the card like a regular credit card. The deposit stays in a separate account; it's not the money you spend. Stax is built for people rebuilding credit from scratch or recovering from past damage like missed payments, collections, or bankruptcy.

The card charges an annual fee and interest on balances you carry, so it works best if you plan to pay your statement in full each month. If you do, you'll build a positive payment history without paying interest charges on top of the annual fee.

Stax differs from some other secured cards because it doesn't require a credit check to open the account — only a soft pull, which doesn't hurt your score. That means you can open one even if you have no credit history or a damaged one.

Key Takeaways

  • Your cash deposit becomes your credit limit, and Stax reports your payment history to all three credit bureaus each month.
  • You pay an annual fee upfront, so the card makes sense only if you plan to use it regularly and pay on time.
  • Stax does not require a credit check, making it an option even if you've been denied elsewhere.
  • After 12 months of on-time payments, you can request a credit limit increase without adding more deposit money.
  • The card graduates to an unsecured card once your credit improves, at which point your deposit is returned.

How Much Deposit You Need and What It Costs

Stax requires a minimum deposit of $250 and accepts deposits up to $2,500. Your deposit equals your credit limit — if you deposit $500, your limit is $500. The deposit sits in a savings account earning a small amount of interest, but you cannot touch it while the card is active. It's held as collateral.

The annual fee is $35. This is charged to your card in the first month, so if you deposit $250, your available credit is $215 after the fee posts. You'll also pay interest (APR varies) on any balance you carry past the statement due date. The interest rate is typically higher than unsecured cards because the bank sees you as higher risk, but the exact rate depends on your creditworthiness at the time you open the account.

There are no late fees, over-limit fees, or foreign transaction fees. If you miss a payment, Stax reports it to the credit bureaus, which will hurt your score — the whole point of the card is to show you can pay on time.

Opening a Stax Account Step by Step

Start at the Stax website and click the button to open an account. You'll provide your name, address, date of birth, Social Security number, and income. Stax performs a soft credit pull, which takes a few minutes. You'll see whether you're approved when ready.

If approved, you choose your deposit amount ($250 to $2,500) and link a bank account to fund it. Stax transfers the deposit to the savings account it holds for you. The card itself ships within 7 to 10 business days. Once it arrives, you set up it through the Stax app or website by entering the card number and expiration date.

You can start using the card as soon as it's activated. Your first statement closes 30 days after your first purchase. Make sure you pay the full balance by the due date — even one late payment can set back your credit-building progress.

Using the Card to Build Credit

The credit bureaus care about three things: whether you pay on time, how much of your limit you use, and how long you've had the account. Stax reports all three monthly.

To build credit fastest, use the card for small purchases you'd make anyway — gas, groceries, a subscription — and pay the full balance every month. This shows you can handle credit responsibly without costing you interest. Keep your balance below 30% of your limit; if your limit is $500, try not to carry more than $150 at any time. The lower your balance relative to your limit, the better it looks to lenders.

After 12 months of on-time payments, you can request a credit limit increase through the app. Stax may increase your limit without asking for more deposit money, which means your available credit grows while your deposit stays the same. This is when the card starts to feel less like a training wheel and more like a real card.

When Your Credit Improves Enough to Graduate

Stax doesn't set a specific credit score threshold for graduation. Instead, the bank reviews your account periodically — usually after 12 to 24 months of perfect payment history — and decides whether to convert your card to an unsecured card. When that happens, your deposit is returned to your bank account, and you keep the card with a new unsecured credit limit.

You don't have to wait for Stax to offer graduation. After 12 months, you can contact Stax and ask them to review your account. They'll look at your payment history, credit score, and how you've used the card. If they see consistent on-time payments and responsible use, they may graduate you early.

Once you graduate, the annual fee may change or disappear depending on the unsecured version of the card Stax offers you. Read the terms carefully when the conversion happens.

What Happens If You Miss a Payment or Close the Account

If you miss a payment, Stax reports it to all three credit bureaus. A single late payment can drop your score 50 to 100 points, depending on your current score. The damage is real and lasts for years, so treat this card as non-negotiable — set up autopay for at least the minimum payment if you're worried about forgetting.

If you close the account, your deposit is returned, but the card's history stays on your credit report for 10 years. Closing it also removes available credit from your profile, which can raise your credit utilization ratio and hurt your score in the short term. If you graduate to an unsecured card, closing the old secured card is less damaging because you still have the unsecured card reporting positive history.

If you need to close the account before graduation, do it only after you've built enough credit history elsewhere that losing this account won't set you back. Ideally, wait until you've graduated or until you have another card reporting positive history for at least a few months.

Stax vs. Other Secured Cards

Stax competes with cards like the Capital One Secured Mastercard, the Discover Secured Card, and the OpenSky Secured Visa. The main differences are deposit requirements, annual fees, and whether the card reports to all three bureaus.

Capital One's secured card has a $200 minimum deposit and a $29 annual fee, but it reports to all three bureaus. Discover's secured card has no annual fee and reports to all three bureaus, but requires a $200 minimum deposit and a credit check. OpenSky has no credit check and no annual fee, but charges a higher interest rate and has a $200 minimum deposit.

Stax's main advantage is that it has no credit check and reports to all three bureaus. Its main disadvantage is the $35 annual fee, which is higher than some competitors. If you've been denied by other cards or have no credit history, Stax may be your best option. If you have some credit history and want to avoid the annual fee, Discover might be cheaper.

Frequently Asked Questions

Can I use my Stax deposit as collateral for a loan?

No. Your deposit is held in a savings account and cannot be withdrawn or used for any purpose other than securing your credit limit. If you need access to that money, you'll have to close the card and forfeit the credit-building opportunity.

What if I can't afford the $35 annual fee?

The fee is charged in your first month, so you'll need to budget for it. If you can't afford $35 plus a deposit, Stax isn't the right card for you right now. Look at cards with no annual fee, like Discover's secured card, or wait until you have the money saved.

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

You may see a small dip when ready after opening the account because of the hard inquiry and new account. After that, your score should start improving within 30 to 60 days as Stax reports your first on-time payment. Significant improvement — 50+ points — typically takes 6 to 12 months of perfect payment history.

Can I use Stax if I'm currently in collections or have a recent bankruptcy?

Yes. Stax does not require a credit check, so recent negative marks don't disqualify you. However, the higher your risk profile, the higher your interest rate may be. Focus on making every payment on time; that's what will eventually offset the damage from collections or bankruptcy.

What happens to my deposit if Stax goes out of business?

Stax is issued by Stride Bank, which is FDIC-insured. Your deposit is held in a savings account that's covered by FDIC insurance up to $250,000. If the bank fails, your deposit is protected by the federal government.