Yes, American Express offers a secured card, but it works differently than most
American Express does offer a secured credit card called the American Express Secured Card. Unlike most secured cards from Visa or Mastercard, the Amex secured card requires a cash deposit but doesn't work like a traditional prepaid card where your deposit is your spending limit. Instead, you deposit money into a savings account, and American Express extends you a separate credit line based partly on that deposit and partly on their own assessment of your creditworthiness.
This matters because it means your actual credit limit can be higher than your deposit, and you're building a real credit history with American Express — not just moving money around. The tradeoff is that American Express has stricter requirements than many other secured card issuers, so you may not be approved even with a deposit ready.
Key Takeaways
- American Express requires a deposit between $500 and $2,500, which sits in a savings account earning interest rather than becoming your spending limit.
- Your credit limit from Amex is typically higher than your deposit amount, meaning you're borrowing against the card company's trust, not just your own money.
- American Express reports to all three credit bureaus, so responsible use builds your credit score faster than cards that report to fewer bureaus.
- The card charges a $95 annual fee, which is higher than many competing secured cards but comes with benefits like purchase protection and roadside assistance.
- After 18 months of on-time payments, you may be able to graduate to an unsecured Amex card and recover your deposit.
How the American Express deposit works
When you open the American Express Secured Card, you choose a deposit amount between $500 and $2,500. This money goes into a savings account held by American Express Bank, and you earn a small amount of interest on it — the rate varies but is typically very low, often under 1% annually. Your deposit is separate from your credit line and stays there as long as your account is open.
American Express uses your deposit as one factor in deciding your credit limit, but it's not a one-to-one match. You might deposit $1,000 and receive a $2,000 credit limit, or deposit $1,500 and get $1,500. The exact relationship depends on American Express's internal assessment of your credit profile. This is different from a traditional prepaid card where $1,000 deposited equals $1,000 to spend.
Your deposit is not touched when you make purchases. You pay your credit card bill each month just like any other credit card holder. If you close the account in good standing or graduate to an unsecured card, American Express returns your deposit to you.
What happens if you miss a payment
If you fall behind on your bill, American Express can use your deposit to cover the unpaid balance. This is the main protection the deposit provides to the card company. Once your deposit is used to pay a bill, it's gone — you don't get it back automatically, and you'll need to rebuild it or pay it back to restore your account.
Missing payments also damages your credit score because American Express reports to Equifax, Experian, and TransUnion. A single late payment can lower your score by 100 points or more, depending on your current score and credit history. This is why the secured card is a tool for building credit through on-time payments, not a safety net if you're struggling to pay bills.
Annual fees and other costs
The American Express Secured Card charges a $95 annual fee. This is higher than many competitors — some secured cards charge $25 to $75 per year, and a few charge nothing. However, the Amex card includes benefits that justify the cost for some people: purchase protection (coverage if items you buy are damaged or stolen), roadside assistance, and emergency card replacement.
American Express does not charge interest on your deposit, so you won't pay interest on that money. You will pay interest on purchases you don't pay off in full each month, just like any credit card. The APR (annual percentage rate) for the Amex Secured Card varies by applicant but is typically in the 18% to 24% range.
There are no foreign transaction fees, which is unusual for a secured card and useful if you travel or make international purchases online. This benefit alone can save you money if you use the card for any cross-border transactions.
How long until you can graduate to an unsecured card
American Express typically reviews your account after 18 months of on-time payments. If you've made all your payments on time and kept your balance low relative to your credit limit, Amex may offer to convert your account to an unsecured card and return your deposit. This is not automatic — you have to meet their standards, and the decision is up to them.
Some cardholders graduate faster (around 12 months), and some take longer or never graduate. The key factors are payment history and credit utilization (how much of your available credit you're using each month). Keeping your balance below 10% of your limit and never missing a payment gives you the best chance.
When you graduate, your deposit is returned to you, usually within a few business days. You keep the credit card account open, and it continues to report to the credit bureaus as an unsecured account. At that point, you may be offered rewards or other benefits that the secured version doesn't include.
Who should consider the American Express Secured Card
The Amex Secured Card makes sense if you have little or no credit history and want to build it with a well-known card company. It's also a good choice if you travel or shop online internationally, because the lack of foreign transaction fees saves money over time. The brand recognition and included protections appeal to people who value those features enough to justify the annual cost.
The $95 annual fee is a real cost, so you should only open this card if you plan to use it regularly and keep it open for at least a year or two. If you're looking for the lowest-cost secured card, other issuers (like Capital One or Discover) offer secured options with lower or no annual fees.
The card is harder to get approved for than some competitors. American Express looks at your full credit profile, not just your willingness to deposit money. If you have recent late payments, collections, or a bankruptcy, you may be denied even with a deposit ready. In that case, a secured card from Capital One or another issuer might be easier to obtain.
Comparing American Express to other secured cards
| Feature | American Express Secured | Capital One Secured | Discover Secured |
|---|---|---|---|
| Minimum deposit | $500 | $200 | $200 |
| Annual fee | $95 | $0 | $0 |
| Foreign transaction fees | None | 3% | None |
| Reports to all three bureaus | Yes | Yes | Yes |
| Typical graduation timeline | 18 months | 6 months | 8 months |
American Express's main advantage is the brand recognition and the included benefits (purchase protection, roadside assistance). If you travel internationally or want those protections, the $95 fee may be worth it. If you're focused purely on cost and speed to graduation, Capital One or Discover are usually cheaper options.
The choice depends on your priorities. If you value the Amex name and plan to use the card internationally, the higher fee makes sense. If you want to build credit as cheaply as possible and graduate quickly, Capital One's faster timeline and zero annual fee may serve you better.
Frequently Asked Questions
Can I use my deposit as my credit limit?
No. Your deposit sits in a savings account and is separate from your credit limit. American Express decides your credit limit based on your deposit and their assessment of your creditworthiness. Your limit is often higher than your deposit, but it's not may provide to be.
What if I can't afford the $95 annual fee?
If the fee is a hardship, consider a secured card with no annual fee from Capital One or Discover instead. Both report to all three credit bureaus and help you build credit just as effectively. The $95 fee is only worth paying if you plan to use the card regularly and value the included benefits.
Do I earn rewards or cash back?
The American Express Secured Card does not offer cash back or rewards points. You earn interest on your deposit (currently very low), but that's the only earning component. If rewards are important to you, wait until you graduate to an unsecured Amex card, which typically offers rewards.
What happens to my deposit if I close the account?
If you close the account in good standing (no unpaid balance), American Express returns your full deposit. If you have an unpaid balance, they use the deposit to cover it first, and you receive any remaining amount. The deposit is not forfeited simply for closing the account.
Can I increase my credit limit without increasing my deposit?
Yes. After several months of on-time payments, you can request a credit limit increase from American Express. They may grant it without asking you to increase your deposit. However, this is at their discretion and is not may provide.