Graduation Process: Secured to Unsecured

What Is Graduation?

Graduation is when your secured credit card is converted to an unsecured card, and your security deposit is refunded. This typically happens after demonstrating responsible credit use.

Typical Graduation Timeline

6-8 Months (Fast Track)

Some cards offer automatic reviews after 6-8 months for users with excellent payment history.

12 Months (Standard)

Most cards review accounts for graduation eligibility after one year.

18-24 Months (Extended)

Some cards or credit situations may require longer demonstration of responsibility.

Graduation Requirements

Payment History

• No late payments
• Consistent on-time payment record
• Minimum 6-12 months of history

Account Management

• Regular card usage
• Responsible utilization (under 30%)
• No overlimit fees or returned payments

Credit Score Improvement

• Score increase of 50+ points
• Reaching 650+ credit score
• Improvement across all three bureaus

Types of Graduation

Automatic Graduation

Card issuer reviews your account and upgrades automatically. You'll receive notice and your deposit back.

Request-Based Graduation

You must contact the issuer after meeting requirements to request graduation review.

Deposit Increase Graduation

Some cards offer to increase your limit without additional deposit before full graduation.

What Happens During Graduation

1. Issuer reviews your account and credit reports
2. If approved, card is converted to unsecured
3. Security deposit is refunded (check or statement credit)
4. Credit limit may be adjusted based on creditworthiness
5. Card number and account remain the same
6. Credit history continues uninterrupted

Maximizing Your Graduation Chances

Perfect Payment Record

Even one late payment can delay or prevent graduation.

Regular Usage

Show consistent activity by using the card monthly.

Low Balances

Keep utilization under 10% in the months before review.

Improve Overall Credit

Work on other credit factors (dispute errors, pay down other debt).

If Graduation Is Denied

Don't panic. You can:

• Ask why you were denied and what to improve
• Continue responsible use for 3-6 more months
• Request another review
• Consider applying for a different unsecured card
• Keep the secured card open to maintain history

After Graduation

Keep the Account Open

Don't close it immediately - this shortens your credit history.

Continue Good Habits

Maintain the same responsible usage that earned your graduation.

Consider Additional Credit

You may now qualify for rewards cards or cards with better terms.

Cards Without Graduation

Not all secured cards offer graduation. Before applying, verify:

• Whether graduation is possible
• The typical timeline
• Whether it's automatic or by request
• What happens to annual fees after graduation