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 a traditional secured card from Visa or Mastercard, the Amex secured card requires a cash deposit but does not use that deposit as collateral in the usual way. Instead, you deposit money into a savings account that Amex holds, and that deposit amount becomes your credit limit. You then use the card like any other credit card, paying a monthly bill separate from your deposit.

The card is designed for people who are building credit or rebuilding it after past credit problems. Amex reports your payment history to the three major credit bureaus — Equifax, Experian, and TransUnion — so on-time payments help raise your credit score over time. After you demonstrate responsible use, Amex may convert your account to an unsecured card and return your deposit.

Key Takeaways

  • The American Express Secured Card requires a cash deposit between $500 and $2,500, which becomes your credit limit.
  • Your deposit sits in a savings account held by Amex and earns a small amount of interest, but you cannot withdraw it while the account is open.
  • You receive a monthly bill for purchases you make, separate from your deposit — the deposit is not automatically used to pay your bill.
  • Amex reports your payment activity to all three credit bureaus, so consistent on-time payments can improve your credit score.
  • After a period of responsible use, Amex may upgrade your account to a standard unsecured Amex card and return your deposit.

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 can charge up to $1,000 on the card. The deposit goes into a savings account that Amex manages on your behalf, and you earn a small amount of interest on it each month.

The key difference from other secured cards is that your deposit is not automatically applied to your bill. If you charge $200 on the card, you receive a bill for $200 that you pay separately. Your $1,000 deposit stays in the savings account untouched unless you close the account or Amex converts it to an unsecured card. You cannot withdraw the deposit while the account is open, even if you pay your bill in full each month.

Annual fees and interest rates

The American Express Secured Card charges an annual fee. The exact amount varies, so check Amex's current terms before you open an account. This fee is charged once per year and appears on your statement like any other charge.

The card also carries an interest rate (called the Annual Percentage Rate, or APR) that applies to any balance you carry from month to month. If you pay your full statement balance by the due date each month, you pay no interest. If you carry a balance, interest accrues at the card's APR. The rate you receive depends on your creditworthiness at the time you open the account.

Building credit with the Amex secured card

The primary reason to use this card is to build or rebuild your credit history. Amex reports your account activity — including your payment history, credit limit, and balance — to Equifax, Experian, and TransUnion every month. When you make on-time payments, those positive actions appear on your credit report and help raise your credit score over time.

To maximize the benefit, charge small amounts regularly and pay your full balance on time each month. This shows lenders that you can manage credit responsibly. Avoid carrying a high balance relative to your limit, because credit bureaus factor in your credit utilization ratio — the percentage of your available credit that you are using. Using less than 30 percent of your limit is generally better for your score than using more.

When Amex converts your account to unsecured

After you demonstrate responsible use — typically by making on-time payments for several months — American Express may upgrade your account to a standard unsecured Amex card. When this happens, Amex returns your deposit to you, usually by mailing a check or depositing it into a bank account you provide. The exact timeline for conversion varies and depends on your individual payment history and creditworthiness.

You do not have to request the conversion; Amex reviews accounts periodically and makes the decision on their own. Once your account is converted, you no longer have a deposit requirement, and your credit limit may increase beyond your original deposit amount.

Comparing the Amex secured card to other options

Other banks and card issuers offer secured cards with different terms. Some secured cards use your deposit as collateral that is held by a third party, while others work similarly to the Amex card. Some charge lower annual fees, and some have higher or lower interest rates. The choice depends on your credit situation, how much you can deposit, and which card issuer you prefer to work with.

If you have no credit history at all, a secured card from any issuer can help you start building one. If you are rebuilding after past problems, the Amex secured card's reporting to all three bureaus makes it a solid choice. If annual fees are a concern, compare the Amex fee to fees charged by other secured card issuers before you decide.

What happens if you miss a payment

If you miss a payment on the American Express Secured Card, the same consequences explore as with any credit card. Amex reports the missed payment to the credit bureaus, which damages your credit score. Late fees are added to your account, and your interest rate may increase. If you continue to miss payments, Amex may close your account and pursue collection action.

If you are having trouble making a payment, contact Amex before the due date to discuss your options. Some cardholders are able to work out a payment plan or temporary arrangement, though this varies case by case.

Frequently Asked Questions

Can I use my deposit to pay my bill?

No. Your deposit sits in a separate savings account and is not automatically applied to your monthly bill. You must pay your bill from your regular bank account or through another payment method. The deposit remains untouched unless you close the account or Amex converts it to unsecured.

What is the minimum credit score needed to open this card?

American Express does not publish a minimum credit score requirement. The card is designed for people with limited or damaged credit history, but Amex still reviews each process. Having no credit history or a low score does not may provide approval, but it does not automatically disqualify you either.

Can I increase my credit limit after I open the account?

Your credit limit is tied to your deposit amount. To increase your limit, you would need to increase your deposit. Contact Amex to ask about depositing additional funds. Some cardholders are able to do this, though policies may vary.

How long does it take to convert to an unsecured card?

There is no set timeline. Amex reviews accounts periodically and makes conversion decisions based on your payment history and creditworthiness. Some cardholders see conversion within six months of responsible use, while others take longer. Amex will notify you when your account is converted.

What happens to my deposit if I close the account?

When you close the account, Amex returns your deposit. The return is usually made by check or direct deposit to a bank account you provide. Any outstanding balance on the card must be paid before or at the time of closure.