Yes, American Express offers a secured card, but only one model and with higher requirements than most competitors
American Express does offer a secured credit card called the American Express Secured Card. Unlike many secured cards from other issuers, Amex's version requires a cash deposit between $500 and $2,500, which becomes your credit limit. The deposit stays in a separate account while you use the card — you do not spend the deposit itself.
The card is designed for people rebuilding credit or establishing a credit history for the first time. Amex reports your payment activity to all three credit bureaus (Equifax, Experian, and TransUnion), so on-time payments help raise your credit score over time. After you demonstrate responsible use — typically 18 months of on-time payments — Amex may convert your account to an unsecured card and return your deposit.
One important difference from other secured cards: Amex's version comes with an annual fee of $95, which is higher than many competitors. You also need to meet Amex's approval process, which includes a credit check and review of your banking history, even though you are putting down a deposit.
Key Takeaways
- American Express Secured Card requires a deposit of $500 to $2,500, which sets your credit limit at that same amount.
- The card charges a $95 annual fee, making it more expensive than secured cards from some other issuers.
- Your deposit is held separately and not spent — you use the card like a regular credit card while the cash sits in a reserve account.
- Amex reports to all three credit bureaus, so consistent on-time payments can help rebuild your credit score.
- You will still need to pass Amex's approval process, including a credit check, even with a deposit backing the account.
How the deposit and credit limit work
When you open the American Express Secured Card, you choose a deposit amount between $500 and $2,500. That amount becomes your credit limit — if you deposit $1,000, you get a $1,000 limit. The deposit goes into a separate savings account held by American Express, not into your regular checking account.
You do not touch the deposit to pay your bill. Instead, you use the card to make purchases just like any other credit card, receive a monthly statement, and pay the balance due. The deposit straightforward sits there as collateral, protecting Amex if you stop paying. Once your account is in good standing and you have made on-time payments for about 18 months, Amex may upgrade you to a regular unsecured card and return the full deposit to you.
The deposit earns no interest, so you are not building savings while the money sits. This is a trade-off: you lose the interest you might earn elsewhere, but you get the chance to rebuild credit and eventually recover the full amount.
Annual fee and other costs to know
The American Express Secured Card charges a $95 annual fee, charged to your account once per year. This is one of the higher annual fees among secured cards — many competitors charge $0 to $49 per year. You pay this fee whether you use the card or not, so factor it into your decision if you are comparing options.
Beyond the annual fee, the card has no foreign transaction fees if you use it abroad, which is a benefit some other secured cards do not offer. There are no late fees, over-limit fees, or returned payment fees — Amex straightforward does not charge these. However, if you miss a payment by 30 days or more, that missed payment will be reported to the credit bureaus and will hurt your credit score.
Interest rates on purchases vary by individual approval, but secured cards from Amex typically carry higher APRs than unsecured cards because the risk profile is different. Ask about the specific rate when you review your offer.
The approval process and credit check
Even though you are putting down a deposit, American Express still runs a credit check and reviews your process. This is different from some other secured card issuers, who approve almost anyone with a deposit. Amex looks at your credit history, current credit score, and banking history to decide whether to approve you.
If you have very poor credit or a recent bankruptcy, you may still be denied despite offering a deposit. Amex is selective about who they approve, even for secured products. If you are denied, you can contact Amex to ask why and whether you can reapply after a certain period.
The credit check itself is a hard inquiry, meaning it appears on your credit report and may lower your score slightly for a few months. This is normal for credit card applications, but it is worth knowing before you explore.
How the card reports to credit bureaus
American Express reports your account activity to Equifax, Experian, and TransUnion — all three major credit bureaus. This means every on-time payment you make is recorded and helps build your payment history, which is the largest factor in your credit score.
Conversely, any late payments, missed payments, or high balances relative to your limit will also be reported and will hurt your score. The card works both ways: responsible use helps you rebuild, but irresponsible use makes things worse. This is why the secured card is most useful if you are committed to paying on time and keeping your balance low.
The account will stay on your credit report even after Amex converts it to an unsecured card, so the positive history you build continues to help your score for years.
When you might graduate to an unsecured card
After about 18 months of on-time payments, American Express may review your account and offer to convert it to a regular unsecured American Express card. When this happens, your deposit is returned to you in full, and your credit limit may increase. The conversion is not automatic — Amex decides based on your payment history and current creditworthiness.
Some cardholders receive the offer sooner, and some take longer. There is no may provide of conversion, so do not count on it as a timeline. If you are not offered conversion after 18 months, you can contact Amex and ask about your options.
Once converted, you will no longer have the deposit requirement, but you will still pay the annual fee unless you switch to a different Amex card. Some people convert and then move to a different issuer's card with no annual fee once their credit has improved enough to may have access to.
Comparing American Express to other secured card options
The American Express Secured Card is one option, but not the only one. Other issuers like Capital One, Discover, and Bank of America also offer secured cards, often with lower annual fees or higher credit limits for the same deposit.
Capital One Secured MasterCard, for example, has no annual fee and accepts deposits as low as $200. Discover Secured Card also has no annual fee. Bank of America Secured Card charges $0 annually. The trade-off is that American Express is a premium brand and may offer better benefits once you graduate to an unsecured card, but the upfront cost is higher.
If the $95 annual fee is a barrier for you, or if you want to start with a smaller deposit, another issuer may be a better fit. The best choice depends on your budget, your credit situation, and what you plan to do with the card once your credit improves.
Frequently Asked Questions
Can I use my deposit to pay my credit card bill?
No. Your deposit is held in a separate account and is not accessible to you. You must pay your monthly bill from your regular bank account or another source. The deposit only serves as collateral if you stop paying.
What happens if I close the account before 18 months?
You can close the account anytime, and your deposit will be returned. However, closing the account early means you lose the opportunity to build a longer payment history, which helps your credit score more. If you close it, the account will still appear on your credit report but will show as closed.
Does American Express offer a secured card with no annual fee?
No. The American Express Secured Card charges $95 per year. If you want a secured card with no annual fee, you would need to look at other issuers like Capital One, Discover, or Bank of America.
Will the hard inquiry from my process hurt my credit score?
Yes, but only temporarily. A hard inquiry typically lowers your score by a few points and falls off your report after about 12 months. The positive impact of on-time payments over 18 months will far outweigh the initial dip.
Can I increase my credit limit after I open the account?
You can request a limit increase by depositing more money into your reserve account. For example, if you started with a $500 deposit and want a $1,000 limit, you can deposit an additional $500. Amex may also increase your limit automatically after demonstrating responsible use.